US President Trump has reportedly approved the framework deal, according to sources close to the decision.
Canadian and US negotiators reached framework deal on reforming the North American Free Trade Agreement (NAFTA) late Sunday, according to reports by Canadian media.
According to a report by Canada’s CTV, a joint statement by US and Canadian negotiators would be issued within hours.
The announcement comes following an emergency cabinet meeting called by Canadian Prime Minister Justin Trudeau two hours ahead of a midnight deadline for providing the text of a revised agreement to the US Congress. Should Canada have failed to provide the document, if would have been excluded from the pact.
This would allow NAFTA to remain a trilateral pact with Mexico.
The new agreement will reportedly boost US access to Canadian dairy market and protect Canada from possible US tariffs on cars, according to two Canadian sources cited by Reuters.
According to the sources, Canada had agreed to a cap on its automotive exports to the United States if the Trump administration imposes global car trade tariffs on national security grounds. The negotiatied quota would allow for some growth in tariff-free automotive exports from Canada above current production levels, the source said.
Besides, Canada would allow US increased access to its highly protected dairy market, in a similar fashion as it did with the EU and Pacific Nations, Reuters reports.
The new treaty is expected to be signed by President Trump and his Canadian and Mexican counterparts in 60 days, according to the Washington Post.
Sourse: sputniknews.com
