US and Canada reach deal on NAFTA

Canada has agreed to sign on to a trade deal between US and Mexico, preserving the three-country North American Free Trade Agreement after more than a year of tortuous negotiations, a US official and a Canadian official told CNN.

Posted: Oct 1, 2018 5:42 PM
Updated: Oct 1, 2018 5:42 PM

President Donald Trump on Monday celebrated his administration's renegotiation of NAFTA, calling the new deal with Canada and Mexico "historic news" that will be a boon for the US economy.

The President attributed the successful renegotiation, which marked the fulfillment of a key campaign promise, to his hard-nosed negotiating tactics and his willingness to impose new tariffs. Reveling in his victory, Trump made clear he will continue to draw from the same playbook -- one that has made Wall Street and top Republicans in Congress queasy -- as he looks to renegotiate trade deals with other countries.

"Without tariffs, we wouldn't be talking about a deal," Trump said. "Just for those babies out there that talk about tariffs -- that includes Congress, 'Please don't charge tariffs' -- without tariffs, we wouldn't be standing here."

US and Canadian officials reached a deal late Sunday night, a month after the US brokered an agreement with Mexico and Trump threatened to exclude Canada from the three-party framework.

"To me the fact that we got a good agreement is all the evidence you need that the President's approach is the good approach, is the right approach. If you're not willing to walk away from an agreement, you're not gonna get one, right?" Lighthizer told reporters after Trump's Rose Garden news conference.

Trump, who has long railed against NAFTA, once again called the original agreement "the worst trade deal perhaps ever made" and described the new US-Mexico-Canada Agreement -- dubbed the USMCA -- as a boon for American farmers, US manufacturing and improve labor standards.

"The factories were leaving, the jobs were leaving, people were being fired," Trump said, describing the old agreement. "We have negotiated this new agreement based on the principle of fairness and reciprocity. To me, it's the most important word in trade."

"This new deal will be the most modern, up-to-date and most balanced trade agreement in the history of our country with the most advanced protections for workers," Trump said during a Rose Garden speech.

Always mindful of the branding, Trump touted the new "USMCA" name.

"It's got a good ring to it," Trump said.

Will Congress approve?

The agreement represents the fulfillment of a signature campaign promise and the brokering of an agreement that just days ago seemed likely to unravel, threatening the decades-old North American free trade framework.

But Trump already appears concerned about the fate of his new trade agreement, wavering between saying he believes the trade agreement will "pass easily" and saying he worries politics will get in the way.

"I plan to sign the agreement by the end of November. I then will submit it for approval to Congress where, in theory, there should be no trouble -- but anything you submit to Congress is trouble, no matter what," Trump said. "It's the single greatest agreement ever signed but they'll say, 'Well, Trump likes it, therefore we're not going to approve it because that'll be good for the Republicans, so therefore we can't approve it.' "

He later added he is "not at all confident," saying Democrats "might be willing to throw one of the great deals for the people and the workers -- they may be willing to do that for political purposes."

Trump's US trade representative, though, said he believes the agreement will pass the up-or-down vote in Congress "with a substantial majority."

"I think it's going to pass. And I think it's going to pass with a substantial majority," Lighthizer said, pointing to improved labor standards and environmental protections that Democrats will like.

How it came together

The negotiations between the US and Canada appeared to be going nowhere fast when Trump warned once again last week that he was prepared to exclude Canada from a renegotiated NAFTA agreement.

"It'll probably or possibly be just USM. It'll be United States and Mexico," Trump said at a news conference on Wednesday, days before the Sunday deadline.

But on Friday morning, Trump's senior adviser and son-in-law Jared Kushner got a call from Canadian Prime Minister Justin Trudeau's chief of staff Katie Telford and senior adviser Gerald Butts who wanted to make a final push to reach a deal, two sources familiar close to the negotiations said.

The phone call set into motion a series of phone negotiations over the weekend involving Kushner and US Trade Representative Robert Lighthizer on the US side and the direct involvement of Trudeau's most trusted advisers, leading to an 11th-hour deal late on Sunday night.

US, Canadian and Mexican officials have been working to renegotiate NAFTA for much of Trump's presidency, but the US began negotiating separately with Mexican and Canadian officials in recent months to get past sticking points involving those bilateral trading relationships.

Late last month, the US reached an agreement with Mexico and turned to bringing Canada into the fold, all with Trump threatening to exclude Canada and move forward on a bilateral deal between the US and Mexico.

The two sides struggled to get past key sticking points for weeks after that, but sources credited the phone call from Trudeau's advisers to the Canadians with setting in motion a good faith, in the weeds negotiations to resolve the final hurdles, reinvigorating Lighthizer's negotiations with Foreign Secretary Chrystia Freeland.

Trump was updated on the discussions and giving his feedback through the weekend negotiations, from Friday to Sunday.

But it was Kushner's close relationship with Telford that sources are crediting with getting the US and Canada to this breakthrough.

It's not the first time Kushner's involvement has pushed negotiations past their toughest points. Kushner played a similar role with Mexico -- in that case, his close relationship was with Luis Videgeray, the Mexican foreign secretary, helped propel those talks to fruition.

Kushner and Lighthizer said later on Monday that Trump was deeply involved throughout the process of negotiating with Canada and Mexico.

Lighthizer recounted Trump calling him frequently to ask him about detailed provisions in the agreement throughout the negotiations.

"There's no president I believe that ever knew the details of an agreement like this President," Lighthizer said. "I mean I'd get calls about things ... He was completely engaged, he knew the stuff."

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 697182

Reported Deaths: 8169
CountyCasesDeaths
Hennepin1427711862
Ramsey59431953
Dakota53075503
Anoka48987486
Washington31228315
Stearns25428242
St. Louis20900339
Scott20039146
Wright18954165
Olmsted16269112
Sherburne13840106
Carver1237052
Clay936897
Rice9278125
Blue Earth888747
Crow Wing8070102
Kandiyohi753292
Chisago733858
Otter Tail689897
Benton6653102
Mower576238
Winona564852
Goodhue560581
Douglas549484
Beltrami534672
Itasca532572
Steele520221
McLeod519665
Isanti500470
Morrison478263
Nobles455650
Becker455060
Polk444575
Freeborn438142
Lyon402454
Carlton399160
Nicollet387848
Pine384026
Mille Lacs363860
Brown358244
Cass355536
Le Sueur348230
Todd333034
Meeker314049
Waseca297626
Martin271633
Wabasha25005
Dodge24865
Hubbard241941
Roseau238224
Houston211217
Redwood206642
Fillmore204510
Renville204248
Pennington196022
Wadena192927
Faribault184925
Sibley180310
Cottonwood179424
Chippewa173439
Kanabec168329
Aitkin159239
Watonwan157211
Rock142919
Jackson136112
Pope13378
Yellow Medicine128720
Pipestone126126
Koochiching125119
Swift120319
Murray117610
Stevens110011
Clearwater109218
Marshall107619
Lake94321
Wilkin91014
Lac qui Parle89424
Mahnomen7339
Big Stone7024
Grant6938
Norman6829
Lincoln6724
Kittson54222
Unassigned52893
Red Lake5067
Traverse4375
Lake of the Woods4204
Cook2150

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 443535

Reported Deaths: 6420
CountyCasesDeaths
Polk69441683
Linn26618363
Scott23312265
Black Hawk19397338
Woodbury17483233
Johnson1698692
Dubuque14775221
Pottawattamie13369186
Dallas13048102
Story1211448
Warren707893
Webster6479103
Cerro Gordo6370105
Clinton635898
Des Moines618084
Muscatine5985109
Marshall586981
Sioux547676
Jasper532076
Lee529084
Wapello5230128
Unassigned50150
Buena Vista479442
Marion464086
Plymouth442185
Henry351341
Jones341159
Bremer331365
Washington330454
Crawford326844
Carroll326553
Benton325756
Boone318636
Mahaska282754
Dickinson276547
Kossuth257471
Clay255629
Jackson253844
Tama246073
Hardin244547
Buchanan244238
Delaware240143
Cedar228025
Fayette227945
Page225724
Wright221741
Winneshiek219237
Hamilton216752
Harrison205476
Madison199920
Clayton199758
Floyd195742
Butler191936
Poweshiek188837
Mills188225
Iowa185927
Cherokee184740
Allamakee181152
Jefferson178238
Lyon178041
Calhoun172213
Hancock170336
Winnebago170131
Cass164356
Louisa161651
Grundy161335
Appanoose158149
Shelby156539
Emmet153241
Franklin152224
Humboldt151626
Union149937
Sac147922
Mitchell146143
Guthrie142132
Chickasaw141618
Palo Alto134527
Clarke130226
Montgomery127940
Keokuk121332
Monroe118733
Howard118422
Ida109838
Davis105025
Greene103012
Pocahontas102623
Monona99034
Lucas98523
Adair97734
Worth9558
Osceola84717
Decatur76710
Fremont76511
Van Buren75221
Taylor73412
Wayne66323
Ringgold63027
Audubon60114
Adams4254
Rochester
Clear
69° wxIcon
Hi: 79° Lo: 55°
Feels Like: 69°
Mason City
Clear
65° wxIcon
Hi: 85° Lo: 51°
Feels Like: 65°
Albert Lea
Partly Cloudy
63° wxIcon
Hi: 82° Lo: 53°
Feels Like: 63°
Austin
Partly Cloudy
66° wxIcon
Hi: 81° Lo: 52°
Feels Like: 66°
Charles City
Partly Cloudy
68° wxIcon
Hi: 85° Lo: 51°
Feels Like: 68°
Warmup ahead of workweek
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Product shortages reminiscent of early 2020 are returning

Image

School COVID-19 policies concerning parents

Image

Why are we seeing product shortages again?

Image

Product Shortages

Image

Full Weather Forecast

Image

Sean's Weather 9/27

Image

Minnesota drivers are violating school bus laws

Image

10 Minnesota educators have now died from COVID-19

Image

CMX Chateau Movie Theater now open to the public

Image

Full Forecast 9/26/21

Community Events