U.S. stocks rise after Canada signs on to reworked NAFTA

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Speaking to reporters from National Press on Monday, both Foreign Minister Chrystia Freeland and Justin Trudeau showed their happiness at the renegotiated NAFTA, which is now being termed as USMCA or the United States, Mexico, Canada Agreement. "That's something we continue to discuss with the United States", she said.

TARIFFS AND TAUNTS: Trump joked that the deal wouldn't have been made without tariffs, specifically on Canadian-made steel and aluminum, which prompted tit-for-tat retaliatory tariffs from Canada on a number of USA goods.

Trade harmony across North America is important to a wide range of businesses in Minnesota. For Texas, nearly 37 percent of exports go to Mexico, with another almost nine percent to Canada, which is the state's second-largest export market.

Some points of contention remain.

Canada, along with Mexico, took a "do no harm" approach to the talks, and there were early indications the Trudeau government succeeded in preserving the status quo in key areas, even though it faced criticism for giving the USA concessions on dairy.

Matthew Pottinger, the US official spearheading China policy on the National Security Council, told an audience at the Chinese Embassy last week that the United States and China were undeniably engaged in competition.

Canada is back in a revamped North American free trade deal with the United States and Mexico after weeks of bitter, high-pressure negotiations that brushed up against a midnight deadline.

"Specifically, we will seek clarity on how the agreement addresses the existing tariffs on Canadian steel and aluminium, as well as how it will ensure that tariffs and quotas upon Canada's auto sector exports will be avoided", Beatty said in a statement. It replaces the 24-year-old North American Free Trade Agreement, of NAFTA, which President Donald Trump had called a job-killing disaster.

Canada also weakened some mechanisms it uses to manage the supply of dairy products, said Steve Suppan, a policy analyst at the Institute for Agriculture and Trade Policy, a think tank in Minneapolis. "We don't like their representative very much". But Dan Ujczo, an worldwide trade lawyer with the USA firm Dickinson Wright, said it would only apply to a very small percentage of vehicles that don't comply with the origin rules.

Farmers have been battered by Trump's trade policy.

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According to multiple reports following the release of the USMCA, Trump wasn't the only American that Freeland rubbed the long way.

Tariffs have especially driven down the prices of soybeans and pork, two key agricultural exports for Minnesota.

Shares of American automakers traded marginally higher following this announcement.

"As someone who has 20 to 25 years of production ahead of me, I may never see this level of trade negotiations in my career again. When we got there, that was an excellent sign for me".

"Trump treated it like a real estate deal when he was a shyster in Atlantic City", Bothwell said. "All of them. The only thing that the United States gave up was more demands". "It doesn't happen that quickly".

The deal includes wider access to the Canadian market for USA dairy producers, but appears to keep Canada's supply management system for dairy and poultry products largely intact.

The trade agreement guards new biologic drugs from cheaper generic competition for "at least 10 years", compared with current protection of eight years in Canada and five years in Mexico. Beijing responded by announcing tariffs of 5 percent to 10 percent on an additional $60 billion worth of US imports. To placate Trump, Mexico agreed in August to provisions that would require 40 percent to 45 percent of a vehicle be built in countries where auto workers earn at least $16 an hour to qualify for NAFTA's duty-free benefits.

Morneau said in his earlier speech that Canada is looking to create tourism, education and financial-service opportunities with countries such as China as it works to expand its oil and gas industry to foreign markets with the building of the Trans Mountain pipeline.

Despite the fact that Ottawa had long pushed back hard against allowing the deal to be periodically revisited, officials in the USA briefing said the new language includes a provision that will indeed see the deal reviewed every six years. And outside of autoworkers, she said, the impact on industry is not assured. Scheer said he would have gotten a better deal. "Does it help the average worker in the U.S.?"