Canada reaches deal with US and Mexico after late night cabinet meeting in Ottawa

OTTAWA – Sources tell The Canadian Press an 11th-hour NAFTA deal has been reached that allows Canada to rejoin the trilateral trade pact.

The new agreement will be called the United-States-Mexico-Canada Agreement (USMC).

Insiders got wind of a breakthrough after 14 months of tumultuous talks and just hours before U.S. and Mexican trade authorities were set to publish their own trade agreement without Canada.

BREAKING: It is now official. Canada, the US and Mexico have reached a new trade agreement. It will no longer be called NAFTA. The deal will now be the USMCA. Here is the joint statement from the USTR and Foreign Affairs Minister @cafreeland #cdnpoli pic.twitter.com/HBV6DbYMFl — Cormac Mac Sweeney (@cmaconthehill) October 1, 2018

Federal cabinet ministers were summoned to a late Sunday meeting at the prime minister’s office near Parliament Hill, and the White House called its own late-night trade briefing.

“It’s a good day for Canada,” said Prime Minister Justin Trudeau as the meeting wrapped up just over an hour after it started.

And with that, he said he would talk to reporters Monday. PMO officials say there will be another cabinet meeting in the morning and a news conference likely as well.

Prime Minister @JustinTrudeau says it’s a “good day for Canada” and he will talk tomorrow. This follows a cabinet meeting on news of a NAFTA deal. #cdnpoli #sorryforthebadvideo pic.twitter.com/rjQgy1dAav — Cormac Mac Sweeney (@cmaconthehill) October 1, 2018

Meantime, congratulations were being offered among key stakeholders who have been on the edge of their seats to see if Canada and the United States would find common ground.

An agreement on how to treat the auto sector, reached this summer between the United States and Mexico, was central to a revamped NAFTA going ahead.

But the U.S. and Canada had trouble dealing with other areas in the pact, including Canada’s dairy industry, its insistence on a strong dispute settlement mechanism and concerns about intellectual property and culture.

After weeks of hunkering down in Washington, Foreign Affairs Minister Chrystia Freeland and David MacNaughton, Canada’s ambassador to the U.S., had spent the day in Ottawa taking part in an aggressive, long-distance, last-minute push to get Canada into the trilateral free trade deal ahead of a key congressional deadline.

Central to the discussions Sunday was an effort to secure some sort of assurance that would allow Canada to avoid the dreaded Section 232 tariffs on steel, aluminum and auto exports, which U.S. President Donald Trump has either threatened or already imposed on national security grounds.

Canada had been offering the Americans better access to its protected dairy market in the hopes of winning American concessions on dispute settlement.

Trudeau has promised repeatedly to keep the country’s supply management system intact, despite pressure from Trump. The issue has also figured prominently in Quebec, where voters go to the polls in a provincial election on Monday.

– With files from Cormac Mac Sweeney