US, Canada reach trade deal to replace Nafta

Bloomberg

The US and Canada have agreed on a trade deal that would save the North American Free Trade Agreement as a trilateral bloc, according to three people familiar with the matter.
US and Canadian negotiators worked around the clock to secure an agreement, allowing leaders from those nations and Mexico to sign the accord by late November.
The 24-year-old Nafta will now be superseded by the US-Mexico-Canada Agreement (USMCA), covering a region that trades more than $1 trillion annually.
“It is a great deal for all three countries,” Trump wrote on Twitter on Monday. He added in another tweet that it solves the many “deficiencies and mistakes in Nafta, greatly opens markets to our farmers and manufacturers, reduce trade barriers to the US and will bring all three great nations closer together in competition with the rest of the world.”
Canadian Prime Minister Justin Trudeau called it a ‘good day for Canada & our closest trading partners.’ Jesus Seade, the Nafta negotiator for Mexican President-elect Andres Manuel Lopez Obrador, said ‘Nafta 2 will give certainty and stability to trade.’
The deal caps a turbulent period for relations between the US and Canada, traditionally close allies on national security and trade. The alliance was severely tested by Trump’s aggressive negotiating style and Trudeau’s willingness to stand his ground on key issues such as dairy and dispute settlement.
US equity futures, Canada’s dollar and Mexico’s peso all gained on the news. The loonie climbed to its strongest since May against the greenback, while the Mexican peso rose as much as 1 percent.