The USMCA will replace the North American Free Trade Agreement, and if one of the chambers switches sides, some believe Democrats would vote against the agreement because it's a "win" for President Donald Trump.
Canada could be exempted from the auto tariffs if it agrees to limits on its auto exports to the United States, Ujczo said. "We've been able to come to an agreement that creates more stability and a greater level of confidence in the business community, confidence in making investments in Canada and as well investments in the other North American economies".
Investor-State Dispute Settlement (ISDS): Chapter 11 dispute settlement mechanisms will be gradually phased out between the US and Canada but remain in place between the USA and Mexico, to varying degrees, depending on the industry (e.g., protections are stronger for the energy and telecom sectors), although companies will first need to utilize domestic proceedings before triggering ISDS.
"I was excited. It was built on what exists already", said Richard Perez, president and CEO of the San Antonio Chamber of Commerce, after hearing about the decision.
"It doesn't have to be a full-fledged free-trade agreement to be a useful conversation", he said.
In the treaty Canada agreed to end it's Class 7 milk price, a category that allowed Canadian producers to sell certain milk ingredients below the price charged by US producers. Canada's participation in a modernized NAFTA is crucial for the growth and prosperity of our city and our state.
"Once approved, this will be a new dawn for the American auto industry and for the American auto worker", President Trump said. - Reinvigorating U.S. vehicle manufacturing.
Negotiators from both sides spent two days talking by phone as they tried to settle a range of hard issues such as access to Canada's dairy market and US tariffs.
In addition, it adds provisions to prevent "manipulation" of the trade rules, including covering currency values, and controls over outside countries trying to take advantage of the duty-free market, officials said.
Mexican officials have said they hope the steel and aluminum dispute can be resolved before USMCA is signed. Many congressional Democrats have been critical of NAFTA, blaming it for spurring offshoring of jobs to Mexico, with its low wages and poor labor rights.
- Aiding farmers by curbing Canada's high tariffs and low quotas on US dairy products.
"They haven't been given the sound bites, I guess, but you had some Democrats say this is really wonderful if he really got all of that".
Canada had opposed USA demands to weaken or eliminate NAFTA'S dispute resolution mechanism, whose arbitration panels Ottawa used to resolve trade conflicts, and to defend against United States anti-dumping and countervailing duties, notably against its important lumber industry.