The US and Canada have reached a deal on a “new, modernized trade agreement”, designed to replace the 1994 Nafta pact. In a joint statement on Sunday night, the two nations said the new deal would be called the United States-Mexico-Canada Agreement (USMCA). On Monday, Donald Trump greeted the “wonderful new trade deal” on Twitter.

“It is a great deal for all three countries,” the president wrote, “solves the many deficiencies and mistakes in Nafta, greatly opens markets to our farmers and manufacturers, reduces trade barriers to the US and will bring all three great nations together in competition with the rest of the world. The USMCA is a historic transaction!“Congratulations to Mexico and Canada!”The rejigged pact will substantially boost US access to Canada’s dairy market and protect Canada’s auto industry from possible US tariffs – a key Trump threat.

“It’s a good day for Canada,” the prime minister, Justin Trudeau, told reporters after a late-night cabinet meeting to discuss the agreement, which triggered a jump in global financial markets. Trump, who blamed Nafta for the exodus of manufacturing jobs to low-wage Mexico, had threatened to walk away from the deal unless major changes were made. But the president approved the “framework” deal with Canada just days after he criticised Trudeau and his negotiating team.(theguardian)…[+]