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The United States and Canada reached a deal to update NAFTA and keep it a trilateral pact with Mexico, beating a midnight deadline with agreements to boost US access to Canada's dairy market and protect Canada from possible USA autos tariffs, two Canadian sources with direct knowledge of the talks said on Sunday.

Canada could be exempted from the auto tariffs if it agrees to limits on its auto exports to the United States, Ujczo said.

USMCA will benefit the United States in numerable areas, and the new agreement will undergo a review process every six years, expiring after 16 years.

The Trump administration's focus on autos was in part to address the flight of jobs to Mexico, but also the president's repeated complaints about the USA trade deficit with Mexico and other countries.

The replacement to the longstanding NAFTA has been inspired by changes in each member state's economies, sectors, and relative outputs over the past 24 years, with USMCA hailed as an "agreement for the 21st Century" by US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland. President Donald Trump announced a preliminary agreement with Mexico more than a month ago.

This article of the agreement also defines a "non-market" country as "a country that on the date of signature of this agreement at least one Party has determined to be a non-market economy for purposes of its trade remedy laws and is a country with which no Party has a free trade agreement".

The Canadian government has said that it would provide compensation to dairy farmers hurt by the deal. Under NAFTA, Canada was able to limit how much milk and dairy products could be brought in from the United States.

On the Senate floor, Senator Rob Portman said that USMCA enables a North American market to be more effective in dealing with some of the trade disputes they have with other parts of the world, most notably China, where there is unfair trade going on.

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Trudeau repeatedly made the point that he had managed to preserve the protected domestic market, which some USA interest groups said should be scrapped.

Earlier, Trump took a victory lap on Twitter after the last-minute deal was reached.

Trump said "there should be no trouble" getting the deal approved by Congress, but added that there could be problems if Democrats gain control of the House or the Senate in the November elections.

The NAFTA deal was signed in 1994, and governed more than $1.2 trillion dollars worth of trade between the three countries.

Unlike the NAFTA and the Trans-Pacific Partnership, the USMCA imposes stronger rules of origin for vehicles and automotive parts.

"They haven't been given the sound bites, I guess, but you had some Democrats say this is really incredible if he really got all of that".

"I think we should deal with that", Wildeboer said, before proposing a solution from the Canadian side.


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