Canada signs new NAFTA deal with U.S., Mexico

Revised deal met with applause and anger from Canadian industry associations

President Donald Trump shakes hands with Mexico President Enrique Pena Neto, left, as Canada’s Prime Minister Justin Trudeau, right, looks on after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. A deal on amending the new North American free trade agreement appears close following a busy weekend, with hopes Canada, Mexico and the United States will approve a rewritten deal in the next 24 hours. (THE CANADIAN PRESS/AP-Pablo Martinez Monsivais)

President Donald Trump shakes hands with Mexico President Enrique Pena Neto, left, as Canada’s Prime Minister Justin Trudeau, right, looks on after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. A deal on amending the new North American free trade agreement appears close following a busy weekend, with hopes Canada, Mexico and the United States will approve a rewritten deal in the next 24 hours. (THE CANADIAN PRESS/AP-Pablo Martinez Monsivais)

Canada joined the United States and Mexico in heralding a new era of North American prosperity on Tuesday as they formally agreed to changes to the new continental free trade deal.

The amended deal comes after years of intense negotiations marked by bickering, threats and frustration.

“This has been a long, arduous and at times fraught negotiation,” said Deputy Prime Minister Chrystia Freeland, who was in Mexico City for the elaborate signing ceremony.

U.S. trade czar Robert Lighthizer and Mexican undersecretary for North America Jesus Seade signed the document beside her.

“All of us together have finally accomplished what we set out to do at the very outset: a win-win-win agreement which will provide stability for workers in all three of our countries for many years to come,” Freeland said.

The three countries originally signed a renegotiated North American free trade pact a year ago, but U.S. ratification stalled as Democrats in Congress and their organized labour allies bickered with Mexico over labour rights, as well as the deal’s treatment of steel and aluminum.

Democrats were upset with provisions around intellectual-property rules on pharmaceuticals and settling disputes, all of which led to fresh negotiations to amend the deal by tightening up some areas of the proposed agreement and loosening others.

The revised deal was immediately met with both applause and anger from various Canadian industry associations and others, with some blasting the new deal as harmful to Canada and others welcoming the changes and the agreement’s imminent ratification by all three countries.

Among those voicing tacit approval for the new deal were usual suspects like the Canadian Chamber of Commerce and the Business Council of Ottawa, but also Canada’s largest union, Unifor, and the Council of Canadians advocacy group, which has long criticized the previous NAFTA.

“The new (deal), while far from perfect, provides a road map to implement necessary changes in trade policy to benefit workers,” Unifor national president Jerry Dias said in a statement. ”The improvements announced today are a helpful boost in achieving those objectives.”

While also describing the new agreement as flawed, Sujata Dey, trade campaigner for the Council of Canadians, said: ”The changes to this deal show that while we are up against unprecedented corporate power, we are able to make a difference when we work together.”

However, the aluminum and brand-name pharmaceutical sectors were particularly upset with the revisions, which saw Mexico agree to a tighter definition on what constitutes North American steel but not aluminum and a loosening of intellectual-property rules on medication.

READ MORE: Feds face calls to protect aluminum industry as new NAFTA deal appears close

“This is disappointing news for Canada’s innovative pharmaceutical industry, which is already facing significant challenges launching new medicines and attracting new investment in Canada,” said Innovative Medicines Canada president Pamela Fralick said in a statement.

“Today’s announcement sends the wrong signal to the thousands of researchers and scientists across the country who have dedicated their lives to finding new cures and innovative treatments to help Canadians live longer, healthier lives.”

NDP trade critic Daniel Blaikie said his party was eager to see more details on the amendments before making any firm decisions on whether to support the deal, including the provisions on aluminum and intellectual-property rules for pharmaceuticals.

Bloc Quebecois Leader Yves-Francois Blanchet, however, warned that his party will not support the deal if Canada’s aluminum industry is not protected, describing the industry in French as “not only important in Quebec, it is emblematic of Quebec.”

Freeland, Lighthizer and Seade went out of their way to defend the deal in separate addresses prior to signing the agreement, with the Canadian deputy minister insisting the federal Liberal government “worked hard to defend the interests and values of Canadians.”

Seade made a particularly lengthy defence of the deal, which will see the U.S. monitor Mexican labour reforms that include increasing wages for the country’s automotive workers and more protections from violence.

U.S. House Speaker Nancy Pelosi said in Washington on Tuesday morning that congressional Democrats were supportive of the changes, which were also approved by their AFL-CIO trade federation allies, paving the way for implementing legislation to finally be tabled in Congress.

“This is a day we’ve all been working to and working for,” Pelosi said.

READ MORE: U.S. can’t show harm from Canadian softwood industry, NAFTA panel says

The Democrats announced support for the deal the same day they introduced articles of impeachment against U.S. President Donald Trump.

It wasn’t immediately clear when the deal will be tabled, though Pelosi did say Democrats were hoping to get moving before the end of the congressional session on Dec. 20.

Mexico ratified the original deal in June while the Canadian government said it was waiting to ratify the agreement at the same time as the U.S.

There had been concerns the agreement, which aims to update the NAFTA, would not be approved before Congress disperses until 2020 and its focus shifts to next fall’s presidential election.

U.S. President Donald Trump, labour unions and many Democratic lawmakers branded NAFTA 1.0 a job-killer for America because it encouraged factories to move south of the border, capitalize on low-wage Mexican workers and ship products back to the U.S. duty-free.

Lee Berthiaume, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

There was high voter turnout for the first of three advance voting days for the Penticton city by-election.
Penticton city by-election general voting day is today, June 19

737 voters on June 9 in comparison to 2018 general election, which had 1,001 on first day

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 Penticton-area men charged with Kamloops brothers’ double homicide

Brothers Erick and Carlo Fryer were found deceased in May in Naramata

(File photo)
Penticton not holding Canada Day activities out of respect for Indigenous people

Cities across B.C. are cancelling the holiday after an increased spotlight on Canada’s dark history

Fruit farmers in the Okanagan and Creston valleys are in desperate need of cherry harvesters amid COVID-19 work shortages. (Photo: Unsplash/Abigail Miller)
‘Desperate’ need for workers at Okanagan cherry farms

Fruit farmers are worried they’ll have to abandon crops due to COVID-19 work shortages

JAK's Liquor Store in Penticton will be donating 10 per cent of its sales on Saturday, June 19, to the Penticton Salvation Army Food Bank. (Photo from JAKS.com)
Stock up your liquor cabinet and support the Penticton food bank

Jak’s beer and wine store is donating a portion of sales to local food banks Saturday

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

Starting in 2022, the Columbia Shuswap Regional District is extending dog control to the entire Electoral Area D. (Stock photo)
Dog control bylaw passes in Shuswap area despite ‘threatening’ emails

CSRD board extending full dog control in Electoral Area D starting next year

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Patrick O’Brien, a 75-year-old fisherman, went missing near Port Angeles Thursday evening. (Courtesy of U.S. Coast Guard)
Search for lost fisherman near Victoria suspended, U.S. Coast Guard says

The 75-year-old man was reported missing Thursday evening

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Most Read