Donald Trump was a satisfied man following the agreement to the trade deal between the USA and Canada to modify the existing NAFTA (North American Free Trade Agreement) which was agreed upon on Sunday. Although it was clear that the deal was not without noticeable compromises, especially on Canada's part, it was regarded to a success given that in its absence the near 25-year continuity of the NAFTA would have collapsed.
Speaking to the media at the White House, the American president shared, "These measures will support many – hundreds of thousands – American jobs. It means far more American jobs, and these are high-quality jobs."
On his part, Trump's Canadian counterpart, Justin Trudeau admitted that Canada had to concede ground to the US. However, he also noted, "We had to make compromises, and some were more difficult than others. We never believed that it would be easy, and it wasn’t, but today is a good day for Canada."
Following the new trade deal, the American dairy producers will be allowed access to the Canadian dairy industry. The access granted is only about 3.5%, but its significance is unmistakable, especially for the local dairy producers to whom the Canadian government has promised monetary compensation for any displacement.
If this were the positive arising out of the trade deal for the USA, there is also an equivalent negative in that the imposing of duties on American imports on steel and aluminium will continue. At present, the USA levies tariffs on steel imports at 25% and aluminium imports at 10% and these duties apply to the import of these two products pertains from most countries across the globe, including Mexico – which is the third signatory in the trade deal – and nations in the European Union.
When asked about these duties not being regularised under the framework of the new trade deal, Trump pointedly stated, "We are not going to allow our steel industry to disappear." It is, however, expected that the Mexican foreign minister Luis Videgaray and the Canadian president are asking for these duties to be scrapped.
The new trade deal will be called the United States-Mexico-Canada Agreement and it is expected to be signed by the 30th November, thereafter which it will need to be approved by the American Congress.