The US and Canada signed a new trade deal Monday to replace the 24-year-old North American Free Trade Agreement (NAFTA).
“Late last night, our deadline, we reached a wonderful new Trade Deal with Canada,” tweeted [text] US President Donald Trump on Tuesday morning, “to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA.”
The USMCA [text] includes 34 chapters and contains new tariff schedules, labor laws, and rules on which products can legally be imported or exported, including updated settlements and protections on textiles, agriculture, and digital trade. It was written to last at least 16 years with review for renewal to take place every six years.
In a press release [text], Canadian Prime Minister Justin Trudeau said “the agreement-in-principle we reached today is good for Canada, good for Canadian businesses, and most importantly, good for Canadian workers and their families.”
Trump has sought to replace NAFTA since he took office last year. In August he signed [JURIST report] a separate deal with Mexico, but negotiations with Canada took a month longer.
On Tuesday morning the Canadian dollar jumped to a five-month high and the Mexican peso to a seven-week high.