Canada, US and Mexico reach new deal renamed USMCA

Canada and the United States alongside Mexico have reached an agreement on a new ‘modernized’ trade deal called The United States-Mexico-Canada Agreement (USMCA).

Canada and US
Source: AP

Ahead of its midnight deadline, in a joint statement from United Sates Trade representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said negotiators reached a new trade agreement, replacing the North American Free Trade Agreement (NAFTA) with the USMCA.

"Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century” they said in a statement released to public on Sunday night.

The USMA deal would allow greater access to Canada’s dairy market, giving more freedom to farmers, ranchers and businesses, resulting in fairer trade.

“It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.” The statement concluded.

The new treaty will be signed by US President Donald Trump and his Mexican and Canadian counterparts, after passing through congress for approval. Congress will have 60 days to apporve the new deal.

Shortly after the deal was made Prime Minister Justin Trudeau made comment that it was “a good day for Canada” before departing the cabinet meeting at 11pm on Sunday night.

The Canadian dollar peaked to its strongest level since May upon the news, rising 0.7%.

Full details of the deal are said to be revealed as early as Monday.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.