Dairy cows walk in a pasture at Nicomekl Farms, in Surrey, B.C., on Thursday August 30, 2018. (THE CANADIAN PRESS/Darryl Dyck)

Dairy cows walk in a pasture at Nicomekl Farms, in Surrey, B.C., on Thursday August 30, 2018. (THE CANADIAN PRESS/Darryl Dyck)

Five things to know about the new U.S.-Mexico-Canada Agreement

U.S. gets more access to Canadian dairy market, and preserving Chapter 19, are at the top

After more than a year of talks, Canada finalized a revamped free-trade deal with the United States and Mexico.

The new deal, dubbed the U.S.-Mexico-Canada Agreement, or USMCA, will replace the North American Free Trade Agreement.

Here are five elements of the new deal:

GETTING MILKED: Trump frequently railed against Canada’s dairy industry throughout the trade talks, calling it unfair to the United States. Five key takeaways from the new U.S.-Mexico-Canada Agreement, a move roundly criticized by domestic dairy farmers. The access given to the U.S. is slightly more than the 3.25 per cent conceded in the Trans-Pacific Partnership trade deal with Pacific Rim countries.

TARIFFS AND TAUNTS: Trump joked that the deal wouldn’t have been made without tariffs, specifically on Canadian-made steel and aluminum, which prompted tit-for-tat retaliatory tariffs from Canada on a number of U.S. goods. And as negotiations dragged on, Trump threatened to slap Canada’s auto industry with significant tariffs — a threat that now appears avoided. The deal says the first 2.6 million Canadian autos exported to the U.S. will be exempted from tariffs, a figure well above the current export rate of 1.8 million. But the steel tariffs remain in place and Trump has given no indication when he might lift them.

ATTENTION, SHOPPERS: The trade deal raises the threshold for duty-free purchases online from American retailers. When the deal takes effect, shoppers won’t pay duties until their online purchase is worth more than $150 — a significant bump from the current threshold of $20. But there’s more: Language in the agreement no longer requires companies — such as Google or Microsoft, for example — to put a data centre in Canada in order to do business here, meaning Canadians’ information could be housed south of the border and subject to American laws.

INTELLECTUAL PROPERTY: The rules around copyright and intellectual property are set to change. On copyright, the length of time after a creator’s death that they maintain rights will move to 70 years from 50. On pharmaceuticals, new biologics — made from natural sources — will be copyright protected for 10 years, up from the current eight, an extension that analysts believe will benefit U.S. companies over Canadian firms.

RESOLVING QUARRELS: Two of Ottawa’s key sticking points throughout the talks involved holding on to dispute-resolution tools and decades-old cultural exemptions that leave Canada in control of its own media content, from broadcasting to publishing to music. The USMCA preserves what was known as Chapter 19, which allows independent panels to resolve disputes over tariffs and duties, as well as Chapter 20, the government-to-government dispute settlement mechanism. Chapter 11, which allows companies to sue governments over perceived mistreatment, has been dumped.

Out with NAFTA, in with USMCA: Canada inks new trade deal

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

FILE – Wet’suwet’en hereditary chiefs have agreed to sign a memorandum on rights and title with B.C. and Ottawa, but elected chiefs are demanding it be called off over lack of consultation. (Thom Barker photo)
Wet’suwet’en hereditary chiefs, Lake Babine Nation get provincial funding for land, title rights

Government says it’s a new, flexible model for future agreements between Canada, B.C. and First Nations.

Kieran Christison, manager of Daybreak Farms in Terrace inspects eggs on Oct. 30, 2020. Christison wants to transition to a zero waste, cage-free facility. (Black Press Media File Photo)
Daybreak Farms aiming to achieve zero-waste, cage-free facility

Kieran Christison, manager, presented the farm’s future plans to Terrace city council

Mercedes Trigo, assistant manager, said that Trigo’s Lifestyle Store in Terrace has experienced four broken windows and an attempted break-in recently, leaving her feeling unsupported by bystanders and the police. (Ben Bogstie/Terrace Standard)
Trigo’s management frustrated by property damage, theft

In a little over a month there have been four broken windows and an attempted break-in at the store

Two RCMP officers have been recognized for their actions in responding to an incident involving a man with a weapon at 4501 Park Ave. on the afternoon of April 27, 2020. RCMP say it was an isolated incident and there is no danger to the general public. (Jake Wray photo)
Terrace RCMP officers recognized for acts of bravery

Two involved in arrest of armed suspect

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: B.C. lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

The funeral of Britain’s Prince Philip in Windsor, England, on Saturday, April 17, 2021. Philip died April 9 at the age of 99. (Kirsty Wigglesworth/AP)
PHOTOS: Prince Philip laid to rest Saturday as sombre queen sits alone

The entire royal procession and funeral took place out of public view within the grounds of Windsor Castle

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
B.C. health minister says delay in Moderna vaccine ‘disappointing’

‘The sooner we get vaccines in people’s arms the better, and inconsistency in delivery is a consistent problem. This is simply a reality and not an issue of blame,’ Adrian Dix said Friday

(Police handout/Kamloops RCMP)
B.C. man dies in custody awaiting trial for Valentine’s Day robbery, kidnapping spree

Robert James Rennie, who was on the Kamloops RCMP’s most wanted list, passed away at the North Fraser Pretrial Centre in Coquitlam

Photos of Vancouver Canucks players are pictured outside the closed box office of Rogers Arena in downtown Vancouver Thursday, April 8, 2021. THE CANADIAN PRESS/Jonathan Hayward
Canucks games against Leafs postponed as team returns from COVID-19

The team has had 11 games postponed since an outbreak late last month

Danita Bilozaze and her daughter Dani in Comox. Photo by Karen McKinnon
Island woman makes historic name change for truth and reconciliation

Becomes first person in Canada to be issued new passport under the TRC Calls to Action

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
RCMP intercept vehicle fleeing with infant taken from Kamloops hospital

The baby was at the hospital receiving life-saving care

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after making comments to a harm reduction advocate Sunday, April 11. (Screen grab)
VIDEO: Vancouver officer convicted of uttering threats under watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to a harm reduction advocate

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

Most Read