The new deal also imposes unprecedented export controls and ends a dairy ingredient pricing system that was helping dairy processors compete without using cheap American imports.
The agreement ends more than a year of tortuous melodrama, name-calling, insults and threats from U.S. President Donald Trump, and capped a weekend of 11th-hour negotiations created to meet the midnight deadline imposed by Trump to either get in or get out of the trilateral free trade agreement that Mexico had already signed off on behind Canada's back.
Canada's high tariffs on most US dairy products had become the main point of contention that had stalled the negotiations for months, making the prospect of Canada joining the US-Mexico deal, struck in August, increasingly feeble.
Canada, the United States' No. 2 trading partner, was left out when the US and Mexico reached an agreement last month.
USA president Donald Trumps says the agreement was "truly historic".
"This landmark agreement will send cash and jobs pouring into the United States and into North America", predicted Trump.
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With a satisfied smile, the president said the new name had a "good ring to it", repeating U-S-M-C-A several times.
Elsewhere, the new deal stipulates that trucks crossing the border from Mexico into the United States must meet higher safety regulations and Mexican workers will be afforded the ability to form unions.
The USMCA gained the USA greater access to Canada's dairy markets by eliminating a pricing system that made it harder for us dairy farmers to enter the market, as well as raising quotas on how much us dairy can come into Canada.
The proposed new agreement, replacing the North American Free Trade agreement, covers the same three countries.
Foreign outsourcing for USA automotive production will be reduced under the deal, said Trump, who predicted "once USMCA is approved, it will be a new dawn for the US auto industry and the US auto worker", turning the country again into "a manufacturing powerhouse". On Sunday President Donald Trump announced the new USMCA. It also promised to fully compensate farmers for any losses they might incur.
"We are sending China a message, and I hope they are listening".
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"WCIT is encouraged that the administration has struck a deal with Canada and Mexico to revise the NAFTA".
"I'm not in any way in agreement with people who are saying that there's any problem with the agreement", he said, adding Canadians will see "firm specific impacts" trickle down.
However, she says the tariffs imposed by the United States on Canadian steel are "unjustified".
Pierre Lampron, president of Dairy Farmers Canada, had long called on Ottawa to tread carefully in dairy concessions under NAFTA talks.
"Any trade agreement proposal must be judged by whether it improves the wages, working conditions and well-being of America's workers and farmers", House Democratic Leader Nancy Pelosi said in a statement.
"We need to produce milk with no anti-biotics", said Nick Bokma. That means that American dairy producers want to export their products, and why not to our most important trade partner, Canada?
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