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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/oct/01/nafta-trade-deal-nikkei-manufacturing-uk-eurozone-business-live
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| Trump hails 'biggest ever' trade deal with Canada and Mexico - business live | Trump hails 'biggest ever' trade deal with Canada and Mexico - business live |
| (35 minutes later) | |
| Trump is now taking questions....although he’s refusing to take any on Supreme Court nominee Brett Kavanaugh. | |
| On the negotiations, he says there were tensions with Canada’s PM, but the two sides got there eventually. | |
| "There was a lot of tensions between he and I," said Trump of his relationship with Canadian Prime Minister Justin Trudeau during trade negotiations. | |
| Q: Will tariffs on Canadian and Mexican steel and aluminium be lifted? | |
| No, says Trump... not unless something can be agreed on quotas to prevent too much metal coming into the US. | |
| That’s a blow for Canada’s steel industry, who must have hoped that USMCA would bring them some relief. | |
| Worryingly for Brussels, Trump suggests he could soon impose tariffs on EU car imports (which would go down very badly with the US and French auto industry). | |
| Just in: Trump confirms his strategy to hit the EU w/tariffs if they don't bargain soon."If we can't make a deal with the European Union, we will respectfully put tariffs on cars." #trade #tariffs | |
| He also says he doesn’t want China to have a hard time on trade. | |
| Here’s a clip of Donald Trump announcing the new trade deal: | |
| President Trump: "Once approved by Congress, this new deal will be the most modern, up-to-date, and balanced trade agreement in the history of our country with the most advanced protections for workers ever developed." pic.twitter.com/yJhKbF1aaU | |
| Donald Trump ends his victory lap by pointing to America’s strong labour market, and the 50% stock market rally since his election. | |
| Trump continues to brag about record high employment.That’s all well and good, but headline jobless numbers don't tell the whole story https://t.co/LfXW8OmnQe pic.twitter.com/AItB20p2J3 | |
| In a warning to Beijing, Trump says it’s “too early” to hold talks with China to resolve the ongoing trade dispute. | |
| He claims that China wants to talk “very badly”....however, China did actually warn that it wouldn’t negotiate unless Trump dropped his threats. | |
| President’s message on U.S-Canada trade is also meant to be a message to China; Trump says it’s too early to talk w/Beijing - a not-so-subtle suggestion that he wants China to twist in the wind a bit longer | |
| Trump says he plans to sign the new trade deal with Canada and Mexico by the end of November. pic.twitter.com/RUkno6HnZJ | Trump says he plans to sign the new trade deal with Canada and Mexico by the end of November. pic.twitter.com/RUkno6HnZJ |
| Getting into his stride, Trump now hits at the “babies” who claim that tariffs don’t make a difference. | Getting into his stride, Trump now hits at the “babies” who claim that tariffs don’t make a difference. |
| We wouldn’t be standing here without tariffs, he argues. | We wouldn’t be standing here without tariffs, he argues. |
| He adds that other countries such as India have been on the phone to the White House trying to renegotiate trade deals, because they’re scared that the US will hit them with tariffs. | He adds that other countries such as India have been on the phone to the White House trying to renegotiate trade deals, because they’re scared that the US will hit them with tariffs. |
| It’s so weird how, even during what some might consider a win, Trump name calls: “babies” complaining about tariffs. pic.twitter.com/QdHLmxXoLd | It’s so weird how, even during what some might consider a win, Trump name calls: “babies” complaining about tariffs. pic.twitter.com/QdHLmxXoLd |
| Once USMCA is approved, it will be a new dawn for the US auto industry and the US auto worker, continues Trump. | Once USMCA is approved, it will be a new dawn for the US auto industry and the US auto worker, continues Trump. |
| It will make North America a “manufacturing powerhouse”, he promises. | It will make North America a “manufacturing powerhouse”, he promises. |
| But he also points out that the deal hasn’t been approved by Congress, suggesting that some on Capitol Hill might oppose the deal “just because Trump likes it”. | But he also points out that the deal hasn’t been approved by Congress, suggesting that some on Capitol Hill might oppose the deal “just because Trump likes it”. |
| No Trump speech is complete, it seems, without an attack on some of America’s trading partners. | No Trump speech is complete, it seems, without an attack on some of America’s trading partners. |
| And today, he turns his guns on Europe, saying it’s a privilege for them to sell goods to America. | And today, he turns his guns on Europe, saying it’s a privilege for them to sell goods to America. |
| Ditto Japan, Trump continues.. saying it’s a privilege for them to “attack the US piggy bank”. | Ditto Japan, Trump continues.. saying it’s a privilege for them to “attack the US piggy bank”. |
| Onto the details... | Onto the details... |
| Trump says USMCA is the most modern, up-to-date and balanced trade agreement ever, with the “most advanced protections ever for workers”. | Trump says USMCA is the most modern, up-to-date and balanced trade agreement ever, with the “most advanced protections ever for workers”. |
| It will help US farmers and ranchers export wheat, poultry, eggs and dairy products to Mexico and Canada. | It will help US farmers and ranchers export wheat, poultry, eggs and dairy products to Mexico and Canada. |
| The president also singles out the provision that higher-paid workers produce a proportion of cars n the region, and the new protection for intellectual property. | The president also singles out the provision that higher-paid workers produce a proportion of cars n the region, and the new protection for intellectual property. |
| Trump then thanks a string of top officials for their work on USMCA, singling out US trade representative Robert Lighthizer for special praise. | Trump then thanks a string of top officials for their work on USMCA, singling out US trade representative Robert Lighthizer for special praise. |
| Whenever you called Lighthizer, you’d find him working in his office or another office, says Trump, hailing his work ethic. | Whenever you called Lighthizer, you’d find him working in his office or another office, says Trump, hailing his work ethic. |
| He also says Mexico’s outgoing president Enrique Peña Nieto should get credit, calling him a “terrific person”. | He also says Mexico’s outgoing president Enrique Peña Nieto should get credit, calling him a “terrific person”. |
| Justin Trudeau got a great deal for Canada, Trump adds graciously. | Justin Trudeau got a great deal for Canada, Trump adds graciously. |
| Donald Trump begins by saying it’s a beautiful, beautiful day in Washington.... and a day in which he brings “truly historic news for our nation, and the world.” | Donald Trump begins by saying it’s a beautiful, beautiful day in Washington.... and a day in which he brings “truly historic news for our nation, and the world.” |
| We have successfully completed negotiations on a brand new deal to terminate and and replace Nafta with an incredible new deal with Canada and Mexico, called USMCA, Trump says proudly. | We have successfully completed negotiations on a brand new deal to terminate and and replace Nafta with an incredible new deal with Canada and Mexico, called USMCA, Trump says proudly. |
| USMCA has a good ring to it, he muses. | USMCA has a good ring to it, he muses. |
| The president then lays into Nafta, calling it the “worst trade deal ever made”, which cost America one in four auto jobs. | The president then lays into Nafta, calling it the “worst trade deal ever made”, which cost America one in four auto jobs. |
| USMCA, Trump continues, is the biggest trade deal in US history.... | USMCA, Trump continues, is the biggest trade deal in US history.... |
| Trump: "The agreement will govern nearly $1.2 trillion in trade, which makes it the biggest trade deal in United States history." | Trump: "The agreement will govern nearly $1.2 trillion in trade, which makes it the biggest trade deal in United States history." |
| Donald Trump has arrived at the podium at the White House Rose Garden to speak about the USMCA trade deal, and presumably take a victory lap.... | Donald Trump has arrived at the podium at the White House Rose Garden to speak about the USMCA trade deal, and presumably take a victory lap.... |
| In the Rose Garden, waiting for President Trump’s press conference on the new #Nafta deal pic.twitter.com/j7B5ESkjXH | In the Rose Garden, waiting for President Trump’s press conference on the new #Nafta deal pic.twitter.com/j7B5ESkjXH |
| There’s a good round-up of the key differences between Nafta and USMCA here in the Washington Post, by Heather Long. | There’s a good round-up of the key differences between Nafta and USMCA here in the Washington Post, by Heather Long. |
| Here’s a quick summary: | Here’s a quick summary: |
| New name. Goodbye NAFTA. The new deal will be known as the United States-Mexico-Canada Agreement, or USMCA | New name. Goodbye NAFTA. The new deal will be known as the United States-Mexico-Canada Agreement, or USMCA |
| Big changes for cars. More cars and truck parts should be made in North America. | Big changes for cars. More cars and truck parts should be made in North America. |
| WashPo says: | WashPo says: |
| Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 percent of its components manufactured in Canada, Mexico or the United States, a substantial boost from the current 62.5 percent requirement. | Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 percent of its components manufactured in Canada, Mexico or the United States, a substantial boost from the current 62.5 percent requirement. |
| There’s also a new rule that a significant percentage of the work done on the car must be completed by workers earning at least $16 an hour, or about three times what the typical Mexican autoworker makes. | There’s also a new rule that a significant percentage of the work done on the car must be completed by workers earning at least $16 an hour, or about three times what the typical Mexican autoworker makes. |
| Trump’s victory: Canada opens up its milk market by giving a larger share to U.S. farmers and eliminating its Class 7 pricing scheme. | Trump’s victory: Canada opens up its milk market by giving a larger share to U.S. farmers and eliminating its Class 7 pricing scheme. |
| That means U.S. dairy farmers can probably send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store). | That means U.S. dairy farmers can probably send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store). |
| Canada’s victory: Chapter 19, allowing for a special dispute process, stays intact. Chapter 19 allows Canada, Mexico and the United States to challenge one another’s anti-dumping and countervailing duties in front of a panel of representatives from each country. This is generally a much easier process than trying to challenge a trade practice in a U.S. court | Canada’s victory: Chapter 19, allowing for a special dispute process, stays intact. Chapter 19 allows Canada, Mexico and the United States to challenge one another’s anti-dumping and countervailing duties in front of a panel of representatives from each country. This is generally a much easier process than trying to challenge a trade practice in a U.S. court |
| On cars, Mexico and Canada get assurance that Trump won’t pound them with auto tariffs. The US administration signed “side letters” allowing Canada and Mexico can continue sending about the same number of vehicles and parts across the border free of charge, regardless of whether auto tariffs go into effect down the road. Only parts above that quota could face tariffs. Trump’s steel tariffs stay in place (for now). Canada wanted Trump to stop his 25 percent tariffs on Canadian steel, but there’s no deal (yet) | On cars, Mexico and Canada get assurance that Trump won’t pound them with auto tariffs. The US administration signed “side letters” allowing Canada and Mexico can continue sending about the same number of vehicles and parts across the border free of charge, regardless of whether auto tariffs go into effect down the road. Only parts above that quota could face tariffs. Trump’s steel tariffs stay in place (for now). Canada wanted Trump to stop his 25 percent tariffs on Canadian steel, but there’s no deal (yet) |
| Improved labor and environmental rights, particularly for Mexico.... | Improved labor and environmental rights, particularly for Mexico.... |
| For example, the USMCA stipulates that Mexican trucks that cross the border into the United States must meet higher safety regulations and that Mexican workers must have more ability to organize and form unions. | For example, the USMCA stipulates that Mexican trucks that cross the border into the United States must meet higher safety regulations and that Mexican workers must have more ability to organize and form unions. |
| Increased intellectual property protections. There are more-stringent protections for patents and trademarks, including for biotech, financial services and domain names - which weren’t considered when Nafta was created in the 1990s. | Increased intellectual property protections. There are more-stringent protections for patents and trademarks, including for biotech, financial services and domain names - which weren’t considered when Nafta was created in the 1990s. |
| Chapter 11, giving investors a special way to fight government decisions, is (mostly) gone. That will please critics, who say it allowed investors to sue governments and win money off the taxpayer. | Chapter 11, giving investors a special way to fight government decisions, is (mostly) gone. That will please critics, who say it allowed investors to sue governments and win money off the taxpayer. |
| Here’a your 1-minute cheatsheet on what is in #USMCA ...Trump won some issues and gave up some to Canada. But the deal got done and will be in effect by 2020. https://t.co/BYBpy9o0Q2 https://t.co/OPdOJlGbtl | Here’a your 1-minute cheatsheet on what is in #USMCA ...Trump won some issues and gave up some to Canada. But the deal got done and will be in effect by 2020. https://t.co/BYBpy9o0Q2 https://t.co/OPdOJlGbtl |
| Duncan Weldon of Britain’s Resolution Group also sees a theme developing.... | Duncan Weldon of Britain’s Resolution Group also sees a theme developing.... |
| NAFTA to USMCA is perhaps instructive.Trump shouts, he gets a nominal/cosmetic change, he declares victory and moves on. | NAFTA to USMCA is perhaps instructive.Trump shouts, he gets a nominal/cosmetic change, he declares victory and moves on. |
| The New York stock market has opened higher, as Wall Street traders give USMCA the thumbs-up. | The New York stock market has opened higher, as Wall Street traders give USMCA the thumbs-up. |
| The Dow Jones industrial average gained 150 points as the opening bell rang out. | The Dow Jones industrial average gained 150 points as the opening bell rang out. |
| The broader S&P 500 index is also rattling higher... | The broader S&P 500 index is also rattling higher... |
| Stocks open higher after US and Canada secure deal to replace NAFTA https://t.co/c1Ey26io2Z pic.twitter.com/06D5Gf2POW | Stocks open higher after US and Canada secure deal to replace NAFTA https://t.co/c1Ey26io2Z pic.twitter.com/06D5Gf2POW |
| If USMCA isn’t as ‘historic’ a change as president Trump claims, why has it been well-received in the markets? | If USMCA isn’t as ‘historic’ a change as president Trump claims, why has it been well-received in the markets? |
| Well, economists will be relieved that the agreement maintains zero tariffs on swathes of goods between the three countries. That removes the risk of hefty new levies that would curb demand. | Well, economists will be relieved that the agreement maintains zero tariffs on swathes of goods between the three countries. That removes the risk of hefty new levies that would curb demand. |
| But also, a pattern is emerging; the Trump White House demands major changes, gets some progress, declares a famous victory, and moves onto the next battle. | But also, a pattern is emerging; the Trump White House demands major changes, gets some progress, declares a famous victory, and moves onto the next battle. |
| A similar result with, say, the Chinese trade talks would be welcomed by investors..... | A similar result with, say, the Chinese trade talks would be welcomed by investors..... |
| Donald Trump is expected to speak about the USMCA deal at the White House at around 11am local time (4pm BST). | Donald Trump is expected to speak about the USMCA deal at the White House at around 11am local time (4pm BST). |
| President Trump tweets he will make remarks on the new United States Mexico Canada Agreement, or USMCA, today at 11 a.m. ET at the White House. https://t.co/X9o3AjXlyK | President Trump tweets he will make remarks on the new United States Mexico Canada Agreement, or USMCA, today at 11 a.m. ET at the White House. https://t.co/X9o3AjXlyK |