TORONTO — Canada and the United States reached a deal Sunday night for Canada to stay in a free trade pact with the U.S. and Mexico. U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland announced the deal in a joint statement late Sunday. They say the newly named the United States-Mexico-Canada Agreement, or USMCA, will result in freer markets and fairer trade.
The agreement preserved a NAFTA dispute-resolution process that the U.S. wanted to jettison, the official said. The official was not authorized to speak publicly and requested anonymity.
The agreement also exempts tariffs on 2.6 million cars. On dairy the official said Canada essentially gave the U.S. the same access it offered in the Trans Pacific Partnership trade agreement that President Donald Trump rejected.
“It’s a good day for Canada,” Prime Minister Justin Trudeau said as he left his office.
“It is a good night for Mexico, and for North America,” Mexican Foreign Minister Luis Videgaray tweeted.
“USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region,” the joint statement said.