According to a joint statement by the US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland, on Sunday, September 30, Canada and the United States, alongside Mexico, have reached a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA), replacing NAFTA.
USMCA will facilitate trade between the parties by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for importers and exporters, and encourage the expansion of cooperation in the area of trade facilitation and enforcement. It also aims to eliminate obstacles to international trade which are more trade-restrictive than necessary.
According to a New York Times report, Canada has not received any assurance that the steel and aluminum tariffs would be lifted as those measures are being addressed on a different track.
Some other news reports indicate that the agreement will cap Canada’s auto exports to the US; however, Canada has reportedly secured some concessions for its auto industry against potential US tariffs.