Canadian dairy farmers' group pans new trade pact with U.S., Mexico

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Canada, the United States' No. 2 trading partner, was left out when the US and Mexico reached an agreement last month to revamp the North American Free Trade Agreement.

India wants to talk because it wants to "make your president happy", Trump said while announcing a new tripartite trade deal with Mexico and Canada, replacing the quarter-century-old North American Free Trade Agreement (Nafta).

"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", Freeland and Lighthizer said in a joint statement. And U.S. dairy farmers may be able to sell a bit more to Canada. And it's not about Canada, Mexico, Europe or other friendly allies.

After he warned against imposing similar tariffs on import of Indian products, Mr Trump said Indian negotiators called him that they want to have a trade deal with the US.

The pact also gives the US greater access to Canada's dairy market.

He said the U.S. had $375 billion in trade deficits.

While the new deal - which includes revised provisions on the critical auto sector - should protect Mexico and Canada from Trump's threatened 25% tariffs on cars, still pending are the duties on steel and aluminum, which officials said was on a "separate track", handled by the Commerce Department.

"This has been the government's approach as well and I commend all - from the prime minister down - who contributed to writing this vital new chapter in the ongoing drive for greater Canadian strength and prosperity". To ensure Canadian dairy farmers don't go bankrupt, the Canadian government restricts how much dairy can be produced in the country (and how much foreign dairy can enter) to keep milk prices high.

"In short, we think this is a fantastic agreement for the United States but also for Canada and Mexico". "We don't want to be put up and get cash back for something we're not doing".

So-called Chapter 19 dispute panels, which the US wants to eliminate from Nafta and which Canada wants to preserveAn exemption for cultural sectors which Canada wants to preserveThe use of Section 232 investigations to apply tariffs to steel, aluminum, and potentially cars.

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He said it was too soon to talk to China about trade deal and said it was "privilege" for other countries to trade with the United States and for them "to come in and attack the piggy bank".

"Everybody's negotiating in good faith right now as we speak", Navarro said on Fox News just before 11 a.m.

Dairy Farmers of Canada issued a terse statement soon after the agreement was announced late Sunday, following 14 months of hard negotiations between the parties.

U.S. officials intend to sign the agreement with Canada and Mexico at the end of November, after which it would be submitted to the U.S. Congress for approval, a senior U.S. official said.

"They're in the final strokes", said the person, based on information from USA administration officials.

"A NAFTA deal in principle will help ease investor anxiety, stabilize trade exposed sectors and reassure the world that North America remains committed to free trade", tweeted Rona Ambrose, who served until past year as interim Conservative leader before retiring from politics. "If China is the real target, then the USA would need to accelerate NAFTA discussions immediately and form a peace treaty with the [European Union] so that it could focus on China".

Trudeau said he knows there is anxiety for dairy producers but also implied things could have been a lot worse.

In 2012, Manila complained that Beijing had stopped buying bananas from the Philippines, following the maritime dispute over the Scarborough Shoal in the South China Sea, while previous year, South Korea's decision to install the US Terminal High Altitude Area Defence (THAAD) anti-missile system also elicited an economic response from China.

The deal is likely to boost global stock markets today, which have been dragged down by concerns about United States trade disputes with China, the European Union and others.