Canada signs new trade agreement with U.S., Mexico

Source: Xinhua| 2018-11-30 23:20:00|Editor: Mu Xuequan
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OTTAWA, Nov. 30 (Xinhua) -- Canada, the United States and Mexico on Friday formally signed the U.S.-Mexico-Canada Agreement (USMCA) on the sidelines of the G20 summit in Buenos Aires, according to the Canadian television network CTV.

Canadian Prime Minister Justin Trudeau, U.S. President Donald Trump and Mexican President Enrique Pena Nieto signed the updated version of the North American Free Trade Agreement (NAFTA).

"The new agreement lifts the risk of serious economic uncertainty that lingers throughout the trade renegotiation process -- uncertainty that would have only gotten worse and more damaging had we not reached a new NAFTA," Trudeau said.

"There is much more work to do in lowering trade barriers and in fostering growth that benefits everyone, but reaching a new free trade agreement with the United States and Mexico is a major step for our economy," said the prime minister.

Trump said the new deal was a model agreement that would stop auto jobs from going overseas, protect intellectual property rights and provide robust protections for digital trade and financial services.

However, U.S. tariffs on steel and aluminum remain in place. CTV reported that a Canadian official said an advantage to signing onto the agreement now is an auto side letter exempting Canada of potential tariffs on exports of up to 2.6 million vehicles, above current levels.

Those tariffs began with U.S. action against imported steel and aluminum, using national security as a justification under an obscure U.S. law from 1962.

Canada and Mexico in turn retaliated with tariffs against the United States. All those tariffs remain in place despite the signing of the USMCA, much to the displeasure of both Canadian and Mexican governments.

The signing of the trade agreement is largely ceremonial as it will need to be ratified by all three countries before it can formally take effect.

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