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Nonetheless, Canada managed to salvage its red-line or walk-away demand, a rejigging of the conflict resolution clause that effectively keeps it in play, and pushing the review of the newly-minted deal to more than six years down the road when Trump will no longer be president and therefore bully-boy-in-chief, even if re-elected in November, 2020.

US President Donald Trump looks to be preparing for a potentially protracted economic war with China by clearing the decks of disputes with America's other trading competitors.

Canadian Prime Minister Justin Trudeau's Liberal government, seeking to diversify Canada's export base, held exploratory talks with China on trade in 2016, but a launch of formal negotiations has failed to materialize. He said Canada did not simply accept "any deal".

Trump hit the road again Tuesday, in part to try selling the trade pact to the American people. "We got a win-win-win for all three countries", Trudeau said.

"That will be a big change for our processors and when our processors aren't comfortable they don't invest and that's something we need to have to finish our products", he said.

The U.S. aim is to have more cars and auto parts made in this country. Never mind that the United States-Mexico-Canada Agreement (USMCA) is similar to the original NAFTA.

The so-called U.S. -Mexico-Canada Agreement (USMCA) will widen foreign access to the domestic dairy market by about 3.6 per cent, according to analysts, higher than the 3.25 per cent that was conceded by Canada under the Trans-Pacific Partnership (TPP).

Canada and the U.S. have agreed a basis for the revised North American Free Trade Agreement (NAFTA), reaching a compromise in late-night talks on Sunday after months of stand-off.

About 75 percent of Canada's exports go to the US, so preserving major elements of the North American Free Trade Agreement was crucial. The provision cost Canada millions of dollars, she said. But NAFTA encouraged factories to move to Mexico to take advantage of low-wage labour. "I believe that an improved North American Free Trade Agreement is good for both our economy and the American worker".

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The North American Free Trade Agreement (NAFTA) is no more. For example, this provision would readily apply to China which has a lot of subsidies, state-owned businesses, and regulations created to tilt trade in its favor.

But the Trump administration is targeting China and views trade negotiations with other nations as a way to set the stage.

"It's a great win for the president and a validation for his strategy in the area of worldwide trade", a senior administration official told reporters.

"I am relieved", Rosen said.

Mr. Lloyd said the challenge with calculating lost farm revenue is the USMCA hurts farmers in two ways: It limits dairy exports in addition to allowing in more US dairy products.

But the president said his administration had not yet agreed to lift tariffs on steel and aluminum imports from Canada, a contentious issue between the two neighbors. The U.S. and Canada reached the basis of a free trade deal Sunday night, a senior Canadian government official said.

Like many other Canadians, Rosen feels Canada hasn't been treated with respect, referring to the personal attacks and steel exports that are still subject to USA tariffs over what Trump calls national security concerns.

Robert Bothwell, a professor at the University of Toronto, also said the US just reduced their initial demands.


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