Any real info regarding the new trade deal with Mexico and Canada?

[Jersey mike]

I was trying to find some specifics on the new deal but I wasn’t too lucky.

I know it’s not that popular on the other side being branded as NAFTA 2.0 or something like that.

I hope it will help as much as the President said it would especially to our farmers.

[Atl-Jerry]

They said they'd finalize the details by December, then it must be ratified.  Expect the resist mevement to continue.

[Beardo]

From the reading I’ve done...

Gained access to 3.6% of our dairy market.

Some caps on our auto production, but the caps are so high, they’ll likely never kick in (pretty much symbolic only).

De minimis (amount we can buy online before duties kick in) increased from $20 to $150 CA.

Some changes to laws for pharma affecting production of generic drugs,  our drug costs could go up.

A big deal for US and Canada was the clause that a large percentage of autos have to be made By workers who get more than $16/hr.  This was negotiated by the US with Mexico, but helps both US and Canada.

The dispute resolution clause was kept. A big deal for Canada...if there is a dispute, it goes before an “independent” body, so one side can’t slap tariffs on something on a whim, with no justification.  

Basically, the US used their position of market power and the threat of tariffs to make it slightly better for them(as is their job). Canada made some concessions, but nothing earth shattering. It’s being sold here as “it’s not as bad as it could have been”, meaning we didn’t gain anything but didn’t lose as much as we could have. Not having an agreement would have been bad for both countries.

[DDT (12)]

Jason,

Thanks for that reply! I really appreciate having an unbiased, objective, and concise review of this important issue to all three nations! Having a perspective from your side of the border is also hugely helpful to me, too, in attempting to filter the hyped-up rhetoric and banter from the pundits, as I consider this myself... Looking forward to the next time we can shoot the breeze again... over a cool one or ten... Thanks again!!!

DDT

[Beardo]

Thanks Bruce.

There was a lot of gnashing of teeth here over the threats and tactics used by Trump and it could be said that there are a lot of Canadians who feel much less “friendly” to the American administration (not Americans themselves  ). I would suggest if he didn’t exploit his position of economic power the way he did, he wouldn’t be doing his job.

Is it a hugely new deal? I don’t think so. Are Americans better off with this deal? Slightly.

[Gavin_Sons]

Thanks Bruce.

There was a lot of gnashing of teeth here over the threats and tactics used by Trump and it could be said that there are a lot of Canadians who feel much less “friendly” to the American administration (not Americans themselves  ). I would suggest if he didn’t exploit his position of economic power the way he did, he wouldn’t be doing his job.

Is it a hugely new deal? I don’t think so. Are Americans better off with this deal? Slightly.

I like your view on American politics. You get it. Some others do not.  Thanks for that.

[Robert]

Some more information, if you are interested in reading a bit more



Here's What Inside Trump's "Historic" Trade Deal With Canada And Mexico

https://www.zerohedge.com/news/2018-10-01/heres-what-inside-trumps-wonderful-trade-deal-canada-and-mexico

[¿spoom]

Should be interesting, considering the larger and larger SE Asia content of "North America" autos/trucks. Wonder how many layers it'll go back, i.e. steel itself. China has been cheating on the amount of steel they send to US markets by sending a huge amount to be "finish processed" in Viet Nam and calling it "made there". The dairy portion will be huge for just south of the Canadian border in my State of Wisconsin. Canada raised tariff on dairy around 1-1x1½ years ago and if killed off a lot of small farms that got less than 30 days notice from their buyers that "no milk will be needed after the end of the month" because we've lost all our Canada customers due to the new tariffs making our prices uncompetitive. Nothing illegal about it and I respect Canada's right to set whatever tariffs they want, but the US has a new top guy and it won't go unnoticed and/or ignored like the previous 8 years. All of the fairing radios I buy went up 25% the 18th of last month because "Trump Tax tariff war" and I'll be adjusting my radio pricing up likewise. I am fine with whatever happens to my sales, as no fight goes without casualties of some sort. I do think my vote for Trump was one of the biggest things I've been able to do as far as leaving the next generation a better Country.     

[Dave Ritsema]

Here is what I received today that is specific to the RV Industry.  (A major employer in my neck of the woods)
 

RV Industry Association Trade Issue Alert
NAFTA Replacement Benefits RV Industry
 
President Trump this week announced a new trade agreement with Canada and Mexico intended to replace the North American Free Trade Agreement (NAFTA). U.S. and Canadian negotiators worked around the clock this weekend to secure an agreement just before a Sunday midnight deadline. NAFTA will now be replaced with the U.S.-Mexico-Canada Agreement (USMCA), covering a region that trades more than $1 trillion annually.
 
In a victory for the RV industry, motorhomes and travel trailers were not included in the new pact's rules of origin for motor vehicles. Under these new rules of origin, automobiles and light trucks will have to have 75 percent North American content to be eligible for duty-free treatment under the new agreement, along with 40 percent of all parts needing to be made by workers making at least $16 per hour. Motorhomes will remain at 62.5 percent domestic content for duty-free treatment, the same as under current NAFTA rules. Travel trailers will need to be at 50 percent domestic content, again the same as treatment under NAFTA presently.
 
The new agreement also includes language which ensures that Canada and Mexico will be exempted from any future U.S. tariffs on imported automobiles and parts, such as that being contemplated by the Administration under the Section 232 national security provisions. This would only be revisited if there was an abnormally large surge of imports from the two countries.
 
USMCA must still be signed by the leaders of all three countries by the end of November. Congress would then need to approve the trade pact as well to implement the new provisions. If approved by Congress, most likely next year, the new treaty would take effect in 2020. Trade between the three countries will be governed by NAFTA until the new agreement takes over.

[Patrick]

We all know as the liberal blogs tell us that this was started years ago by their favorite President.

[gordonv]

The dairy portion will be huge for just south of the Canadian border in my State of Wisconsin. Canada raised tariff on dairy around 1-1x1½ years ago and if killed off a lot of small farms that got less than 30 days notice from their buyers that "no milk will be needed after the end of the month" because we've lost all our Canada customers due to the new tariffs making our prices uncompetitive.

Seems strange, as I know we have a Dairy Board, which I thought was to protect our Dairy Ind, but we supposedly only have a Domestic Dairy Ind, only for domestic consumption. Therefore no imports or exports allowed, other than personal import.

Now with the new NAFTA agreement, there is a small amount allowed into Canada.

Other than what Beardo wrote, that was pretty much the same I heard of the agreement. I haven't had any issue with the $ amount I can import, it was always the cost of shipping to Canada that makes me ship to just south of the border. Difference of $10 to the US and $40 USD to Canada.

[Jersey mike]

thanks guys, appreciate the info and input.

hopefully this all plays out positive for everyone involved.

[Gryphon Rider]

The dairy portion will be huge for just south of the Canadian border in my State of Wisconsin. Canada raised tariff on dairy around 1-1x1½ years ago and if killed off a lot of small farms that got less than 30 days notice from their buyers that "no milk will be needed after the end of the month" because we've lost all our Canada customers due to the new tariffs making our prices uncompetitive.

Seems strange, as I know we have a Dairy Board, which I thought was to protect our Dairy Ind, but we supposedly only have a Domestic Dairy Ind, only for domestic consumption. Therefore no imports or exports allowed, other than personal import.

Now with the new NAFTA agreement, there is a small amount allowed into Canada.

Other than what Beardo wrote, that was pretty much the same I heard of the agreement. I haven't had any issue with the $ amount I can import, it was always the cost of shipping to Canada that makes me ship to just south of the border. Difference of $10 to the US and $40 USD to Canada.

It's a little far for us Calgarians to drive over the border to save on shipping, and I have no idea how far into the US I would have to go to find an outfit that receives shipments for Canadians.  You certainly have it better than me in that respect.

I know I have avoided purchasing items shipped from the US because of the customs brokerage fees that are a nasty surprise when the courier shows up at the door.  Sometimes it means paying a higher initial price from a Canadian seller, sometimes it means deciding not to purchase the thing, and sometimes it means holding off on the purchase until I'm travelling in the US and taking it over the border myself.  The duty-free limit going from $20 to $150 means I'll be buying more from the US.  I hope Canada takes action on this before the official implementation date of the USMCA agreement.

[Gryphon Rider]

I just wish they had a better acronym than USMCA.  NAFTA is way quicker to say.

[scooperhsd]

USMCA makes me think of United States Marine Corps Association

[csj]

CAMUS, or MUSCA.

[bscrive]

It's a little far for us Calgarians to drive over the border to save on shipping, and I have no idea how far into the US I would have to go to find an outfit that receives shipments for Canadians.  You certainly have it better than me in that respect.

I know I have avoided purchasing items shipped from the US because of the customs brokerage fees that are a nasty surprise when the courier shows up at the door.  Sometimes it means paying a higher initial price from a Canadian seller, sometimes it means deciding not to purchase the thing, and sometimes it means holding off on the purchase until I'm travelling in the US and taking it over the border myself.  The duty-free limit going from $20 to $150 means I'll be buying more from the US.  I hope Canada takes action on this before the official implementation date of the USMCA agreement.

I am fortunate in that respect.  The US border is less than an hour away from me and there is a Canadian company called MYUSADDRESS where I get my stuff shipped to.  They give me a physical address to ship items to and will hold the stuff for up to a year for a pretty cheap fee ($6 CDN/parcel).  When I, or one of my family/friends is going over, we just pick up the stuff for whomever has parcels sitting there.  I have even purchased motorcycles and a Can Am Spyder and sent them there for them to hold onto until the paperwork at the border is done.  You can even ship a car there if need be.  Very helpful place for us Canadians.  Win/win situation for us Canadians and the American companies we buy stuff from.  A lot of the time when we come back, Canada Customs doesn't even charge us the tax if it isn't too much.  They even let my cousin through without paying tax on $2500 in tin siding for his shop.

[gordonv]

I just wish they had a better acronym than USMCA.  NAFTA is way quicker to say.

I'm calling it the new NAFTA agreement. Because it is still the North American Free Trade agreement, just a new one.