You are here: Home » News-IANS » Politics
Business Standard

US, Canada reach deal to salvage Nafta

IANS  |  Washington 

The US and have reached a last minute deal to salvage the (Nafta), overcoming deep divisions to keep the 25-year-old pact intact.

The deal came on Sunday night after a weekend of frantic talks to try and preserve a that has stitched together the economies of Mexico, and the US but that was in danger of collapsing amid deep divisions between and Canadian Justin Trudeau, reports

The 11th-hour agreement was punctuated by a frenetic Sunday, with Canadian leaders teleconferencing throughout the day with top American officials in

Trudeau convened a 10 p.m. cabinet meeting in to brief officials on the deal, as Jared Kushner, Trump's and his close adviser, and Robert E. Lighthizer, the Trade Representative, hashed out the final details.

Mexico's Under Trade, Juan Carlos Baker, was expected to present the texts of the agreement to the just before midnight.

The deal represents a win for Trump, who has derided for years and threatened to pull the US from the pact if it was not rewritten in Washington's favour.

The struck a deal with last month to rewrite and had threatened to jettison from the pact if it did not agree to concessions like opening its dairy market to American farmers.

The had set a September 30 deadline to release the text of its new with

Informed sources told that Canada will now ease protections on its dairy market and provide access that is similar to what the US would have gained through the Trans-Pacific Partnership, a trade treaty that Trump withdrew from last year.

The countries also appear to have reached an understanding that would protect Canada from the threat of automobile tariffs, which Trump has routinely threatened, though it is not clear how far those protections would extend.

Canada also appears ready to accept assurances that and aluminium tariffs that Trump has imposed will be lifted, though it remains unclear whether the taxes would be replaced by quotas that limit

--IANS

ksk

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 01 2018. 09:12 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU