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The United States-Mexico-Canada Agreement (USMCA) replaces the North American Free Trade Agreement (NAFTA) that has been in effect since 1994.

"It's going to be extremely hard to get into those large market areas if we have to go through the United States", Raitt said after question period.

"Passage of the USMCA would reduce key trade-related risks, but ongoing tensions with China remain and now loom significantly larger for the United States economy than those with Mexico and Canada", Fitch said.

That morning, before Trump's news conference, U.S. Ambassador David MacNaughton spoke at an event in Toronto with U.S. -based website Politico, where on a scale of one to 10, he put the chances of the two sides being able to reach a deal at "five". "Now, the new agreement is to close those holes".

Almost 30 percent of all equipment produced in the U.S.is intended for export and Canada and Mexico are the first and second-largest export markets for both USA construction and agricultural equipment, according to an AEM statement.

Governing nearly $1.2 trillion in trade, the pact known as the US-Mexico-Canada Agreement, or USMCA, is "the most important trade deal we've ever made by far", Trump told a White House press conference.

The government found support from Canada's chief negotiator of the original North American Free Trade Agreement, who said an unusual clause covering future free trade with "non-market" countries did not infringe Canadian sovereignty.

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Williams said one positive for dairy farmers with the new agreement is that it will open the Canadian market to more exported American dairy products.

"China is not playing by the rules often, and this helps us to have Canada and Mexico with us to address issues like what is happening with China right now". "There's no China deal that's worth losing a ratified USMCA". President Donald Trump announced a preliminary agreement with Mexico more than a month ago.

But it is indeed a new kind of agreement, not just NAFTA 2.0, according to Ohio State University Economist Ned Hill.

Republicans could push for a swift vote on the U.S. -Mexico-Canada Agreement if Congressional power swings to Democrats in the November elections. Li suggested that Beijing should work with other developed countries other than the United States, and "disintegrate any economic alliance in the world that might target China".

While the new deal - which includes revised provisions on the critical auto sector - should protect Mexico and Canada from Trump's threatened 25% tariffs on cars, still pending are the duties on steel and aluminum, which officials said was on a "separate track", handled by the Commerce Department.

Analysts agreed that the labor chapter in the new agreement is stronger than those in the Trans-Pacific Partnership, which many unions and labor groups panned.