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Trump announces U.S-Mexico-Canada trade deal

A trade deal has been reached with Canada.  President Trump says, “It is my great honor to announce that we have successfully completed negotiations on a brand new deal to terminate and replace NAFTA.”

Trump says Canada has signed on to the deal already reached with Mexico, and it will have a new name.  The new United States Mexico Canada Agreement (USMCA) is meant to replace the old agreement.   The President says the new deal will be good for farmers.  “Our farmers have gone through a lot over the last fifteen years.  They’ve been taken advantage of by everybody.  Prices have gone way down and we’re working on some other deals that are going to make them very happy, also.”

Trump says it is a great deal for all three countries and solves what he calls mistakes and deficiencies in NAFTA, and opens markets to U.S. farmers and manufacturers.

The U.S. dairy industry achieved a victory with the new agreement.  The USMCA specifically calls for Canada to ensure that milk Class 6 and 7 and their associated milk class prices will be eliminated six months after entry into the agreement and that products now classified under Class 6 and 7 will be reclassified with prices based on end use.  Canada will also have to allow limited access to its dairy markets.

The new agreement also calls for Canada to ensure that non-fat milk solids be priced no lower than the USDA nonfat dry milk price minus Canada’s processor margin, multiplied by Canada’s yield factor.  Canada will also have to make available their monthly global export data for milk protein concentrates, skim milk powder, and infant formula.

A side letter of the new USMCA addresses several products the European Union wants protected under geographical indications, allowing U.S. and Mexican producers to continue using several common names, including many cheese names.

U.S. Trade Representative Robert Lighthizer says Canada will provide new access for United States chicken and eggs and increase its access for turkey.

The agreement also established new guidelines for the use of biotechnology.  Lighthizer says all three countries agreed to strengthen disciplines for science-based Sanitary and Phytosanitary measures.