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Washington (AFP)

Canada and the United States late Sunday reached a deal on a new free trade pact, which will also include Mexico, to replace the 1994 North American Free Trade Agreement.

Here are main points of the pact:

-It is known as the United States-Mexico-Canada Agreement, ditching the old NAFTA name disliked by US President Donald Trump, who had threatened to cancel the pact if a new one wasn't reached.

-Ottawa will now open its protected dairy market further to US producers, after most foreign products were kept out under tariffs of up to 275 percent.

-In return, NAFTA's dispute settlement mechanism, which allows for arbitration panels to resolve trade conflicts, will remain intact despite previous US objections.

-The US had sought increased domestic content for duty-free autos, and the new text provides for rules to encourage North American supply of components. About 2.6 million vehicles assembled in Canada are exempted from US duties.

-A new chapter aims to promote "high levels of environmental protection".

-Digital trade is included for the first time.

-The agreement will remain in force for 16 years but will be reviewed every six years.

-It does not cover tariffs on steel and aluminum which Washington imposed on Canada, Mexico and other US allies and which officials said are being handled separately.

© 2018 AFP