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Trump touts ‘fairness and reciprocity’ of new U.S.-Mexico-Canada trade deal

President Trump declared victory on Monday on a deal more than a year in the making. The United States-Mexico-Canada Agreement, or USMCA, largely keeps the structure of the 1994 North American Trade Agreement, but gives U.S. dairy farmers greater access to the Canadian market, add stipulations for the auto industry and increases certain protections. Amna Nawaz reports.

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  • Amna Nawaz:

    It's a deal.

    The United States and Canada agreed to terms last night on a new free trade agreement that also includes Mexico. This morning, the deal got a White House welcome.

    President Trump celebrated in the White House Rose Garden announcing a deal more than a year in the making.

  • President Donald Trump:

    So we have negotiated this new agreement based on the principle of fairness and reciprocity.

  • Amna Nawaz:

    Replacing the 1994 North American Free Trade Agreement, or NAFTA, has been a priority for the president. Today, he declared victory after getting agreement from Canada, the U.S.' second largest trading partner.

  • President Donald Trump:

    These measures will support many hundreds of thousands of American jobs. This is also a historic win for American manufacturers and American autoworkers, who have been treated so badly. We have lost so many jobs over the years under NAFTA.

  • Amna Nawaz:

    The new deal is dubbed the United States-Mexico-Canada Agreement, or the USMCA.

    It's largely keeps NAFTA's structure covering $1.2 trillion in goods flowing among the three nations. But the agreement gives U.S. dairy farmers greater access to the tightly restricted Canadian market. It requires at least 75 percent of a car to be made in North America to quality as tariff-free, and at least 30 percent of the work done on every car must be by workers earning $16 an hour.

    In addition, it increases labor rights, environmental and intellectual property protections.

  • President Donald Trump:

    By the way without tariffs, we wouldn't be talking about a deal.

  • Amna Nawaz:

    Mr. Trump pointed to his willingness to play hardball as a key factor. He had previously threatened tariffs on autos and auto parts from Canada.

    In August, he announced a bilateral deal with Mexico, threatening to leave out Canada entirely. Then, just before a midnight deadline on Sunday, the administration announced Canada would be part of a new trilateral deal.

    In Ottawa, Canadian Prime Minister Justin Trudeau praised the agreement as modernizing NAFTA. He acknowledged the talks were tough.

  • Justin Trudeau:

    Renegotiating NAFTA has been a challenge in conversations with the president and with the administration over these past 13 months. But there is also no question that, now that we have moved forward on a USMCA, that is good news for all three of our countries.

  • Amna Nawaz:

    Previously, Mr. Trump aimed sharply worded barbs at Trudeau. Today, he called the prime minister — quote — "a good person who's doing a good job."

    He also complimented outgoing Mexican President Enrique Pena Nieto and president-elect Andres Manuel Lopez Obrador. Lopez Obrador said he will honor the agreement when he takes office in December.

    Leaders from all three countries have to sign the agreement and each nation's legislature would also have to approve it. Privately, administration officials say they are confident Congress will ratify the deal, but publicly President Trump expressed some doubt, especially if Democrats take that one or both chambers in the midterm elections.

  • President Donald Trump:

    They might be willing to throw one of the great deals for people and the workers. They may be willing to do that for political people or political purposes.

  • Amna Nawaz:

    If the deal does win approval, many of the provisions wouldn't take effect until 2020.

    We will take a closer look at what the deal does and doesn't do right after the news summary.

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