“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA).
USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region.
It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.
We look forward to further deepening our close economic ties when this new agreement enters into force.
We would like to thank Mexican Economy Secretary Ildefonso Guajardo for his close collaboration over the past 13 months.”
Key aspects of the new deal (via Bloomberg):
- USMCA will include new provisions on unfair trade practices, according to U.S. officials.
- Agreement includes new market access for farmers, including dairy
- U.S. reaches deal with Canada, Mexico on car tariffs
- Allows for pact to be signed by leaders at end of November
- No agreement on Canada steel, aluminum at this point
- USMCA includes rules on financial services, intellectual property
- It has stronger labor provisions to level playing fields between partner countries; will incentivize more automobile production in the U.S.
The Mexican Economy Minister has just delivered the new NAFTA text to the Senate.
“It’s a good day for Canada,” said Prime Minister Justin Trudeau as the meeting wrapped up just over an hour after it started.
And with that, he said he would talk to reporters Monday.
The peso and the loonie are extending gains on the final headlines.
And US equity futures are holding notable gains…
The iShares MSCI Mexico Inv. Mt. Idx. ETF (EWW) rose $0.62 (+1.21%) in premarket trading Monday. Year-to-date, EWW has gained 3.94%, versus a 9.38% rise in the benchmark S&P 500 index during the same period.
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