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US and Canada reach last minute deal on trade

Author
AP,
Publish Date
Mon, 1 Oct 2018, 5:02PM
Canada's Prime Minister Justin Trudeau meets with US President Donald Trump at the G7 leaders summit in Quebec. (Photo /  AP)
Canada's Prime Minister Justin Trudeau meets with US President Donald Trump at the G7 leaders summit in Quebec. (Photo / AP)

US and Canada reach last minute deal on trade

Author
AP,
Publish Date
Mon, 1 Oct 2018, 5:02PM

The US and Canada have reached the basis of a free trade deal, a senior Canadian government official said.

The agreement preserves a NAFTA dispute-resolution process that the US wanted to jettison, the official told The Associated Press ahead of an official announcement.

The official was not authorized to speak publicly and requested anonymity.

The agreement also exempts tariffs on 2.6 million cars. On dairy Canada essentially gave the US the same access it offered in the Trans Pacific Partnership trade agreement that 
President Donald Trump rejected.

"It's a good day for Canada," Prime Minister Justin Trudeau said as he left his office.

The US and Canada were under pressure to reach a deal by midnight Sunday, when the Us must make public the full text of the agreement with Mexico.

Canada, the United States' No. 2 trading partner, was left out when the US and Mexico reached an agreement last month to revamp the North American Free Trade Agreement.

The Trump administration officially notified Congress of the US-Mexico trade agreement on August 31.

That started a 90-day clock that would let outgoing Mexican President Enrique Pena Nieto sign the new pact before he leaves office December 1.

Mexico's economics ministry said in a tweet earlier Sunday that the text of the pact would be delivered to the Mexican Senate Sunday night, adding that "if there is agreement with Canada, the text will be trilateral. If there is not, it will be bilateral.

"Trump had said he wanted to go ahead with a revamped NAFTA — with or without Canada.

It was unclear, however, whether Trump had authority from Congress to pursue a revamped NAFTA with only Mexico, and some lawmakers said they wouldn't go along with a deal that left out Canada.

US-Canada talks bogged down earlier this month, and most trade analysts expected the September 30 deadline to come and go without Canada being reinstated.

They suspected that Canada, which had said it wasn't bound by U.S. deadlines, was delaying the talks until after provincial elections Monday in Quebec, where support for Canadian dairy tariffs runs high.
-AP

 

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