Canada's foreign affairs minister pledged to provide dairy farmers with "fair" and "full compensation" as the sector grapples with the country's concessions on milk in its new trade deal with the USA and Mexico.
The Texas Republican also said a congressional vote on the new deal, dubbed the US-Mexico-Canada Agreement (USMCA), will definitely not happen until after the November midterms and would most likely slip into 2019.
Political deadlines are often fuzzy but Canada and the USA appear to be working towards some major compromises and a NAFTA deal. At the same time, however, I am concerned about new provisions in the deal that could hurt our auto workers. Under NAFTA, Canada was able to limit how much milk and dairy products could be brought in from the United States.
"It's a good day for Canada", was all Prime Minister Justin Trudeau would say as he left a late-night cabinet meeting in Ottawa that capped several days of frenetic long-distance talks that included Foreign Affairs Minister Chrystia Freeland and U.S. Ambassador David MacNaughton.
Flavio Volpe, president of Canada's Automotive Parts Manufacturers' Association, said Trump's comments could aid legal challenges against any such tariffs.
Farmers in the United States would also gain greater access to Canada's dairy market through the deal. Additionally, the deal increases minimum wages for Mexican auto workers and also raises the number of made-in-North America car parts required for a vehicle to be compliant with NAFTA.
The deal comes despite Donald Trump's multiple trade wars, which have seen the U.S. president impose taxes on imports from both Canada and Mexico, bringing retaliation in kind.
With the power to review and then impede or effectively veto a possible FTA between China and Canada or Mexico, the United States can block potential "backchannels" for Chinese products to enter United States markets through its neighbours, and gain a significant advantage in weakening Beijing's negotiating power in future trade talks, the Post reported.
He soon found himself in Ottawa, a critical part of a full-court press to get an agreement done before the Sunday midnight deadline imposed by the U.S. Congress to get the deal fast-tracked and voted on by December 1, ahead of a new incoming Mexican government.
Trump embraced the U.S. -Mexico-Canada Agreement during a Rose Garden ceremony, branding the pact the "USMCA".
A deal seemed imminent, worrying those within the USTR who were convinced they weren't yet done, said the source.
US Puts Russia "On Notice" Over Treaty Violation, NATO Agrees
Mattis said Tuesday that he intends to bring the issue up during the North Atlantic Treaty Organisation meeting. After four years of diplomatic effort, he said, the U.S.is living by the treaty and Russian Federation is not.
The United States and China are locked in a spiraling trade war that has seen them level increasingly severe rounds of tariffs on each other's imports.
The new deal avoids the collapse of the North American Free Trade Agreement or NAFTA. He said the Trump administration already has serious concerns about China shipping goods to the US through Canada and this was an "important geopolitical play" to limit that.
Despite the fact that Ottawa had long pushed back hard against allowing the deal to be periodically revisited, officials in the USA briefing said the new language includes a provision that will indeed see the deal reviewed every six years.
Were dairy farmers thrown under the bus?
John Weekes, Canada's chief NAFTA negotiator in the early 1990s, said the new clause is no different from the pact's original clause that gives any country the right to terminate the agreement on six-month's notice for any reason. These rules dictate how much of a auto needs to be made in Canada, the USA, or Mexico to qualify for tariff-free treatment. As Robertson said MacNaughton told him last week, "Whether we get a deal or not, the campaign continues - it's a permanent campaign".
Canada and Mexico won't have to sweat it, though.
"This objection is largely more philosophical than practical - the idea of having quotas as a side letter to a free trade agreement".
"I don't think it did".
What's the deal with NAFTA and what's going on?
Intellectual property protections: The new trade treaty extends copyright protection to 70 years after an author's death, up from 50 years previously.