Justin Trudeau’s USMCA Deal Might Just Have Triggered Bigger Problems for Canada

Justin Trudeau signed a replacement U.S.-Mexico-Canada (USMCA) deal at the 11th hour, and his negotiation power is amidst question once again. Canada’s opposition Conservative Party leader slammed Prime Minister Justin Trudeau’s government on Monday for agreeing to biased agreements, which would only benefit US and Donald Trump at the first place.

Contrarily, a statement issued by the Trudeau’s government said that they are still working on an agreement on steel and aluminum tariffs with the US, but any progress is yet to be reported.

Andrew Scheer, leader of Canada’s Conservative Party, said in parliament Monday “”They capitulated on access to Canada’s dairy market.” Adding “They capitulated on pharmaceuticals, agreeing to Donald Trump’s plan for higher drug costs for Canadians. And they actually agreed to limit Canada’s diary exports to other countries so that American farmers can fill that space.”

He also asked Foreign Affairs Minister, Chrystia Freeland if she get, in exchange for those concessions, an end to the steel and aluminum tariffs?

Freeland, the top negotiator for the USMCA, replied to the query and said that government ensured best for all and was tough “when it mattered.” She further strained on establishing the fact that government is actively engaged on lifting the steel and aluminum tariffs. Further highlighting, tariffs against US last week as a counter against Trump’s administration.

US initially offered Canada and Mexico exemptions on its steel and aluminum tariffs. However, the taxes returned earlier this year, pressurizing both the countries to compromise for the eventual USMCA Agreement on trade, which replaced North American Free Trade Agreement (NAFTA).

Canada continuously disagreed that US tariffs were unfair, however Trudeau’s government later signed the deal, which included tariffs on both aluminum and steel. According to USMCA deal, the country now needs to roll back two dairy price support programs as well open up its markets to more dairy products. A move which, would allow US producers to gain 3.6 percent of the Canadian market, up from 3.25 percent.

Likewise, according to USMCA section 32.1, all three countries now need to notify their trading partners if they engage in trade talks with any “non-market economies”, including China.

Therefore, as Canada and Trudeau look forward to growing trade with China after USMCA, the problems loom large in name of Donald Trump and his administration, who will actively monitor each step Canada takes after the deal.Besides, even White House is currently involved in a trade with China and heavy tariffs have been imposed by the US on Chinese products.

So, as Canada looks forward to a new high with China, it must not forget that a new low in the name of USMCA, might just bring them back to ground zero.

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