October 1, 2018
Latest revision to NAFTA allows US dairy farmers more access to Canada
According to Reuters, Canada has agreed to provide US dairy farmers access to about 3.5% of its approximately $16 billion dairy market. But, as such a move would impact Canadian farmers, the government also assured it would offer compensation to affected parties, sources said.
"Freer markets, fairer trade and robust economic growth" in North America is expected with the latest version of the NAFTA deal, a joint statement by the US and Canada declared.
In the hours before this announcement, negotiators feverishly worked over outstanding details, with both side making concessions to finalise the deal.
The agreement was later approved by US President Donald Trump who had threatened to walk away from what he saw as an unfavourable deal.
In addition, US officials could sign the revised agreement with Canada and Mexico at the end of November, after which it would be submitted to the US Congress for approval, a senior US official said.
The deal will also preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from US anti-dumping tariffs, Canadian sources said.
While the agreement provides benefits for particular aspects - like a quota allowing a significant growth in tariff-free automotive exports from Canada to the US above the former's current production levels of about two million units - it does not entirely iron out other issues.
For instance, the matter of US tariffs being imposed on Canada's steel and aluminum exports remains unresolved.