A huge relief can be felt by the trucking industry with the new agreement made between Canada, United States and Mexico with regards to trade. The industry including trucking in Cambridge is in full support of the new trade deal. Once the Congress has given its seal of approval, the North American Free Trade Agreement will be scrapped and replaced with the new deal.
The new trade pact was introduced by US President Donald Trump after intense discussion between the Chrystia Free land, the Canadian Foreign Affairs Minister, and the Office of the United States Trade Representative. Trump refers to this new trade pact as rebalance and modernized compared to the previous one.
The US has already made a pact with Mexico prior to presenting a new deal to Canada. The Canada will soon become a part of what they refer to as USMCA or United States-Mexico-Canada Agreement.
Trump said that USMCA will deliver the relationship of the US with Mexico and Canada into the 21st century. He believes that NAFTA was not able to do what is needed in order to match the pace of the evolution of the American economy. The old rules greatly benefit off shoring which is the reason why many of the manufacturing employment are out of the country.
With the new trade deal, manufacturers are mandated to produce 75 per cent of their auto content within North America. This is higher than the previous 62.5 per cent rule set by NAFTA. The new deal does not tackle the issue with the tariffs imposed by the United States to all steel and aluminum products manufactured in Canada.
With regards to possible tariffs imposed on auto parts, automobiles and light trucks manufactured in Canada, the US guaranteed that they will exclude a yearly limit of 2.6 million passenger vehicles including light trucks or a declared value reaching $32.5 billion for auto parts.
The deal also tackled amendment with Canadian law that will grant access to more US products including poultry, dairy products and eggs. As for the agreement between Mexico and Canada, the agreement made some changes on the rules concerning data sharing and security of intellectual property.