Dairy Farmers of Canada unhappy with USMCA deal signed Friday

Dairy Farmers of Canada unhappy with USMCA deal signed Friday

USA tariffs on steel and aluminum remain in place, but a Canadian official said an advantage to signing onto the agreement now is an auto side letter exempting Canada of potential tariffs on exports of up to 2.6 million vehicles - well above current levels.

Trudeau also referenced the recent plant closures by General Motors that will affect almost 15,000 jobs in the United States and Canada, calling the development a "heavy blow".

USA president Donald Trump, left, and Justin Trudeau, Canada's prime minister, smile during a news conference before the signing of the United States-Mexico-Canada Agreement (USMCA) at the G-20 Leaders' Summit in Buenos Aires, Argentina, on Friday Nov. 30, 2018.

The signing of the so-called free trade agreement comes at a time when tens of billions of dollars of tariffs remain in place on goods traded among the three countries.

The United States-Mexico-Canada Agreement (USMCA) was proposed by the three countries as a replacement deal on September 30. The deal will also need approval of the House, which transfers to Democratic control in January.

Mr Trudeau said the deal was a major step for Canada's economy but warned that there is more work to be done.

Trump has threatened to use a national security justification to impose steep tariffs on the hundreds of billions of dollars in autos the USA imports annually.

In an open letter to Prime Minister Justin Trudeau, the Dairy Farmers of Canada warn the PM that the current text of the new USMCA agreement contains a provision that would grant the USA oversight into the administration of the Canadian dairy system, something they claim will undermine Canadian sovereignty.

Both presidents addressed the tariff disputes they've had with Trump remarking that "battles sometimes make great friendships".

Canada's milk producers say Canada has surrendered its ability to independently manage its dairy system with the signing of the updated North American free-trade agreement on Friday.

The three countries continued to talk out the agreement all the way up to the signing ceremony. Before Trump arrived in Argentina he injected additional drama into the proceedings by canceling another high-stakes meeting, with Russian President Vladimir Putin.

"It really is an incredible way to end a presidency", Trump said.

In Mexico, the deal was negotiated under Enrique Peña Nieto, but incoming President-Elect Andrés Manuel López Obrador might decide not to honour it.

Congress is likely to wait to vote on the deal until the United States International Trade Commission releases a report on the economic impact.

Trudeau echoed Trump's message, saying the new pact protects the middle class in Canada and generates new business opportunities.

However, Trump and U.S. Trade Representative Lightizer said they were confident the agreement would pass Congress. "Many companies are coming back, and we're very excited about that".

It didn't take long before it was noticed that the acronym added an A to 'USMC, ' the United States Marine Corps. "We've taken a lot of barbs and a little abuse and we got there", Trump said. Trump tweeted before leaving his hotel for his first meeting, a short one with Argentinian President Mauricio Macri at Casa Rosada, the famous pink governmental palace.

Trump faces a series of diplomatic challenges over the weekend, most notably whether he can strike an agreement with Xi.

On Thursday, as Trump was leaving Washington for Argentina, his former attorney and fixer, Michael D. Cohen, pleaded guilty to lying to Congress about that project, and implicated the president.

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