Kansans praise new trade deal with Canada, Mexico


Kansas legislators applauded the agreement, including U.S. Rep. Roger Marshall who served as a negotiator for the deal several months ago in Mexico City.

"If anyone thinks this is a good deal, then you've had the wool pulled over your eyes", Edmunds analyst Ivan Drury said.

While NAFTA rolled off the tongue and became nearly as familiar to Canadians as RCMP and National Hockey League, it appears the nearly unpronounceable USMCA will take a little getting used to.

Amidst a trade war and rising rhetoric from the White House, there have been some doubts about whether Canada would be able to reach an agreement with the United States, adding to earlier threats from President Donald Trump that he would cancel NAFTA if a deal highly favourable to the USA is not be reached. This will create high-quality jobs and strictly enforce the rule of origin requirement, he added.

Trump is claiming a win over an eleventh-hour trade deal with Canada which he has labelled the "most important trade deal we've made". He said this will help manufacturing of the pharmaceutical sectors.

But a Democrat-controlled Congress "might be willing to throw one of the great deals for people and the workers".

Teamsters President James P. Hoffa wants assurances about the enforcement of the new USMCA before he offers support
Teamsters President James P. Hoffa wants assurances about the enforcement of the new USMCA before he offers support

President Donald Trump reportedly accepted the new deal while Canadian Prime Minister Justin Trudeau held a late-night meeting with his Cabinet in Ottawa. According to The Washington Post, the provisions are expected to apply from 2020, after leaders from the countries sign it and respective legislatures give their approval. It strengthens made-in-North-America rules by increasing the percentage of vehicle and truck parts, which must be manufactured in North America to qualify for zero tariffs, from 62.5% to 75%. Under the agreement, 75 percent of every automobile must be built in North America.

USMCA also said that Mexico needed to make it easier for workers to form unions.

USMCA is said by analysts to be similar to Nafta in many respects but there is improved access for USA agricultural goods, including the dairy products which Canada in particular had tried to limit.

The U.S. and Mexico came to a deal at the end of August that will be part of the overarching agreement that includes Canada. However, under USMCA, new quotas will be set which are expected to increase market access for USA farmers.

The US and Canada were still able to agree on an updated version of the North American Free Trade Agreement, a trilateral trade deal among the US, Canada, and Mexico, on Sunday.

Adamski said the biggest problem with u-s milk production is overproduction depressing prices. Utah's dairy industry will benefit from new access to Canadian markets for "fluid milk, cream, butter, skim milk powder, cheese and other dairy products", as well as decreased restrictions on marketing certain types of cheese across North America.