Wednesday, 19 December, 2018

NAFTA Replacement USMCA Signed at G20

President Donald Trump Canada's Prime Minister Justin Trudeau and Mexico's President Enrique Pena Nieto participate in the USMCA signing ceremony at G20 in Buenos Aires Argentina on Nov. 30 2018 Donald Trump says he'll terminate Nafta
Kelvin Reese | 05 December, 2018, 01:50

"I will be formally terminating NAFTA shortly", Trump told reporters aboard Air Force One on his way home from a G20 summit in Argentina.

At a separate event in New York, Finance Minister Bill Morneau said Canada takes seriously comments made by U.S. President Donald Trump about withdrawing from the North American Free Trade Agreement, the older treaty the new United States-Mexico-Canada Agreement (USMCA) is to replace.

In an attempt to blunt such maneuvering, Trump on Saturday said he would move to terminate the existing agreement soon - so Congress would be forced to choose between the new deal or no pact.

He said it's clear U.S. lawmakers are in the first stages of negotiations toward ratifying the U.S. -Mexico-Canada Agreement, known as USMCA.

Robertson expects Donald Trump to finally act on his threat to rescind the NAFTA when he introduces legislation to implement the USMCA to pressure Congress to move on the new agreement within six months. The deal eliminates Canada's unfair Class 6 and Class 7 milk pricing schemes, opens additional access to USA dairy into Canada, and imposes new disciplines on Canada's supply management system.

The business world seems to be reacting favorably to the U.S.

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The U.S. Chamber of Commerce said a year ago that exiting NAFTA without a new deal could devastate American agriculture, cost hundreds of thousands of jobs and "be an economic, political and national-security disaster".

Steps taken by the Trump administration at last week's G-20 summit in Buenos Aires, Argentina, could have significant effects for the trucking and port industries as the president continues to revamp global trade policy for the United States.

"I think they're betting on Congress not letting it all go to hell", she said.

"I'm in discussions with a variety of Democratic leaders on those points and they will be very much involved in the process moving forward and will have a strong influence on how we put things together, because I want them not only to vote for it, I want them to be happy".

Sen. Sherrod Brown, D-Ohio, has been critical of the new trilateral trade deal.

The leaders of the three countries agreed on a deal in principle to replace NAFTA, which governs more than $1.2 trillion of mutual trade, after acrimonious negotiations concluded on September 30. "What isn't in it yet is enough enforcement reassurances regarding workers, provisions that relate to workers and to the environment", she said.

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