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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kootenay-Columbia MP Rob Morrison. Photo courtesy Conservative Party of Canada.
MP Morrison hopes for economic recovery plan in upcoming federal budget

Kootenay-Columbia Conservative looking for post-pandemic recovery plan in next week’s Liberal budget

The 1977/78 British Columbia Olympics (BCO) men’s volleyball team. Recently three members were inducted into the BC Volleyball Hall of Fame, Keith Gallicano is No. 1, Jerry Story is No. 3 and John Markwart is No. 7.(Contributed)
Three more Revelstoke Volleyballers inducted to the Volleyball BC Hall of Fame

The men played for the 1977/78 British Columbia Olympics team

(Natalia Cuevas-Huaico - Kelowna Capital News)
Morning Start: Foot bones don’t harden until you’re an adult

Your morning start for Tuesday, April 13, 2021

A syringe is loaded with COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
Interior Health announces 89 cases of COVID-19 in the region

Currently, there are 900 active cases in the region

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

A shop up on Grand Oro Road near Twin Lakes burned down on Monday. (Facebook)
Fire rips through shop in small South Okanagan town

The building was destroyed despite community efforts to fight the fire

The Save Sickle Point Committee, a grassroots community group, has teamed up Penticton’s Tempest Theatre and Film Society to release short film on Sickle Point. (Contributed)
WATCH: Conservation group releases short doc on saving South Okanagan’s ‘precious’ Sickle Point

Sickle Point, the last intact wetland near Skaha Lake, is facing the prospect of development

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Protesters occupied a road leading to Fairy Creek Watershed near Port Renfrew. (Submitted photo)
B.C. First Nation says logging activist interference not welcome at Fairy Creek

Vancouver Island’s Pacheedaht concerned about increasing polarization over forestry activities

Skaha Lake Middle School. (File photo)
COVID exposure at Penticton middle school

Skaha Middle School is the latest in growing lists of exposure in the Okanagan

Flow Academy is not accepting membership applications from anybody who has received a dose of the vaccine, according to a password-protected membership application form. (Submitted image)
B.C. martial arts gym refusing patrons who have been vaccinated, wear masks

Interior Health has already issued a ticket to Flow Academy for non-compliance with public health orders

Forward Elan Bar Lev Wise of the West Kelowna Warriors (right, shown playing for the Vernon Vipers in 2019) has been suspended nine games by the B.C. Hockey League for being the instigator and aggressor in an after-the-game fight with Vernon’s Kjell Kjemhus Monday, April 12, at Kal Tire Place. Kjemhus was given a two-game suspension for his role. (Black Press - file photo)
West Kelowna Warriors forward handed lengthy suspension

Elan Bar Lev Wise fought Vernon Vipers forward Kjell Kjemhus after BCHL game was over Monday, April 12; Kjemhus suspended two games

A five-storey, 60-unit building has been proposed for 8709 Jubilee Rd. E., Summerland. The proposal will be the subject of a public hearing on March 22. (Image by GTA Architecture)
Zoning, OCP amendments adopted for Summerland housing development

Additional variances will be needed for controversial five-storey, 60-unit housing development

Most Read