Trump says tensions with Canada's Trudeau 'all worked out'

Canadian automakers

Trump called Trudeau "weak" and "dishonest".

However, the new agreement has B.C. agreeing to scrap the restrictions that prevent US wines from also showing up on grocery-store shelves.

The unprecedented attacks on America's closest ally left a bitter taste.

Mr Trump spoke after earlier posting tweets claiming the new trade pact solved the "deficiencies and mistakes" in Nafta, which has governed trade between the three countries since 1994.

The most significant difference between NAFTA and the USMCA may be as simple as the rebranding exercise itself, which some observers said would hand Trump political capital, regardless of its substance.

"We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood".

U.S. trade representative Robert Lighthizer and Canadian foreign affairs minister Chrystia Freeland announced the deal in a joint statement late on Sunday.

Jesus Seade, President-elect Andres Manuel Lopez Obrador's NAFTA negotiator said on Twitter: "We celebrate the trilateral agreement". "We have survived it. We don't like their representative very much".

Mexico's future foreign relations secretary said the new trade agreement between Mexico, the United States and Canada "provides certainty for financial markets, investment and job creation". Canada had demanded protection from Trump's tariffs on imported steel and aluminum.

"We didn't ask to reopen NAFTA. There are a lot of things unresolved", she said. "We limited the damage and preserved our access to the American market". That speech was an exercise in moderation compared to the US demands that numbered more than 100 items, but still, Canada's goals were ambitious.

In a big victory for Canada, NAFTA's Chapter 19 dispute resolution system, which involves anti-dumping and countervailing decisions, will remain intact.

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While Nelson said this agreement won't solve all the problems plaguing the dairy industry , it's a start. In May, a pound of bagged milk could cost one dollar but might be $1.25 per pound a month or two later.

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"We're seeing this as an added bonus because it does give our dairy farmers, and dairy farmers across the country added access to that Canadian market that's so important to them, and it looks like poultry and eggs will also have some added access to the Canadian market" said Kenney.

"This deadline was real", according to a senior US official. He said Canada did not simply accept "any deal".

Robert Bothwell, a professor at the University of Toronto, also said the USA just reduced their initial demands. Scheer said he would have gotten a better deal.

Roland Paris, a former foreign policy adviser to Trudeau, expressed relief that the deal is done but anxious about the long-term relationship between the two countries.

Financial markets breathed a sigh of relief that the United States and Canada had reached a last-minute deal on Sunday to preserve a single trading zone in North America after serious worries it could fragment under Trump's trade pressures.

The US has also been embroiled in a trade war on several fronts this year.

The new agreement would end the discriminatory pricing and restrict Canadian exports of dairy powders. That is meant to bring production back to the United States or Canada and away from Mexico, where auto workers earn on average just $4 to $5 an hour.

Dairy Farmers of Canada, however, issued a terse statement saying the deal will have "a dramatic impact not only for dairy farmers but for the whole sector".

USMCA includes a provision calling for Canada and the United States to recognize Mexico's "direct, inalienable and imprescriptible ownership of hydrocarbons" within its territory, including the continental shelf.

The new deal, once ratified, will make it easier for the U.S.to enter Canada's restrictive dairy market, in which US imports are discouraged through supply management practices like high tariffs.

"It's weird", Charest, the former Quebec premier, said.

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