Wed, 03 Oct 2018
USA - US President Donald Trump took credit for salvaging a free trade accord with Canada and Mexico. As Fred Katayama reports, financial markets rallied on news of that deal
US President Donald Trump praised the reworked free trade deal with the US, Canada and Mexico as a massive job engine.
"These measures will support many hundreds of thousands of American jobs. This is also a historic win for American manufacturers, and American auto workers who've been treated so badly. We've lost so many jobs over the years under NAFTA," said the President.
Trump said the deal will give American farmers greater access to export dairy, eggs, wheat and poultry. He said auto workers would get higher wages.
The pact reworks the North American Free Trade Agreement and preserves a single trading zone in North America.
Manhattan Venture Partners Research Director, Santosh Rao, identified the biggest beneficiaries from the deal:
"I think overall, the industrials will be good. And Canada is a big partner in terms of energy, in terms of everything. I think all that will have some spillover effect. Overall positive sentiment will flow into everything. And Canada is one of our biggest trading partners. So I would say that a number of industries, leading off with farming, autos and other industrials."
The new deal also preserves a trade dispute mechanism that Canada had sought. Canadian Prime Minister Justin Trudeau called it "a good day for Canada".
Relieved investors drove up stocks in the three countries. Canada's currency rallied as well.Source: Reuters