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New NAFTA Deal is finally here!

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You heard it here first, folks: the USA and Canada have - finally - made their new trade deal, signed two hours before that absolute last, absolutely final, possible moment. Talk about down to the wire!

To get over that hurdle, the negotiators agreed to leave the contentious auto trade and auto-parts trade issues to be resolved in a separate addendum, or side deal. 

Canada concedes the issue of "supply management" of its dairy sector, which was a big propaganda issue for Trump.  I am not convinced the concession really changes all that much, as the Canadian dollar is greatly devalued and the currency exchange rates likely discourages American producers from being all that interested in the small Canadian market.  What may well happen is that Wisconsin producers of milk and cheese products will gain more access to the Prairie Provinces, and just might start to chip away at the vast Metro Toronto market.  I just don't see Vermont  milk producers suddenly shipping vast amounts of Vermont milk into Quebec, the traditional heart of Canadian milk supply.  For one reason, all their containers would have to be re-labelled in both English and French, a not insignificant up-front cost.  Whether or not those containers also have to be re-sized into metric units is another open question. 

Interestingly, the USA was able to keep their "national security" exemption clause in the new Agreement, despite the Canadians unanimously stating that they would walk away from any deal that kept the contentious clause.  What that tells you is that the practical realities of maintaining smooth trade relationships with the USA, notwithstanding the bellicose grandstanding of The Donald, is and was more important that insistence on the Trump Escape Clause  (within which he can unilaterally issue new tariffs or quotas or absolute bars based on his claims of US "national security," which are all pretty much BS).  

You can read about it here:

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