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US, Mexico, Canada Reach New Trade Deal to Replace NAFTA

MOSCOW (Sputnik) - The United States, Mexico and Canada have reached a trilateral trade agreement, which will now be called USMCA, US Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland said in a joint statement.
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"It's a good day for Canada," the Wall Street Journal cited Canadian Prime Minister Justin Trudeau as saying.

Earlier in the day, media reported citing sources that Canada has agreed to be a part of the new deal to replace the North American Free Trade Agreement (NAFTA), which was announced in late August by the United States and Mexico. After intensive trilateral talks, held over the weekend, the sides have reportedly managed to resolve disagreements on NAFTA and reached arrangements, which will preserve the three-country format of the original deal.

"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," the statement, published on the Canadian government portal, said.

US, Canada Reach NAFTA Deal - Reports
The new agreement is expected to be signed by the leaders of the three countries in 60 days, according to reports.

"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," the joint statement said.

Mexico Welcomes New USMCA Trade Deal With US, Canada

Mexico welcomes the new trilateral trade agreement with the United States and Canada, Jesus Seade, Mexican President-elect Andres Manuel Lopez Obrador's chief North American Free Trade Agreement (NAFTA) negotiator, stated. 

"We welcome the trilateral agreement. The door on trade division of the region closes. NAFTA-2 gives Mexico confidence and stability in its trade with its partners in the North America. It is very satisfying to be Lopez Obrador's representative in this process. Way to go!" Seade posted on Twitter.

US President Donald Trump has been seeking to renegotiate the United States’ trade agreements with other countries, including the NAFTA deal, since his election campaign in 2016. The current NAFTA agreement has been in place since 1994. Trump has threatened to leave NAFTA if a better agreement is not negotiated by the United States, Mexico and Canada, that is more advantageous to US workers and farmers.

READ MORE: Canada's Future in New NAFTA Deal to Be Clear Within 48 Hours — Mexican Minister

Trump: 'No Necessity to Keep Canada in New NAFTA Deal'
For over a year, Canada, Mexico and the United States have been engaged in talks to modernize their trade deal. In August, Trump said that the United States and Mexico had reached an agreement in their NAFTA talks. The Trump administration has been keen to finalize the deal by December 1 before Mexican President Enrique Pena Nieto leaves office, meaning that the agreement has to be introduced to Congress before October.

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