The Current

Who are the real winners and losers in the USMCA deal?

Trade experts from all three countries weigh up the wins, losses, and the fine detail of the new United States-Mexico-Canada deal.

Canadian consumer will have more choice, says one researcher

From left to right, U.S. President Donald Trump, Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau. The three countries have reached a new trade deal to be called the the U.S.-Mexico-Canada Agreement, or USMCA for short. (Kevin Lamarque, Daniel Becerril, Chris Wattie/Reuters)
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Canadian consumers are among the biggest winners in the new USMCA deal, according to a researcher who focuses on international trade.

"In terms of dairy, wine, the de minimis threshold — I mean, it was all in the right direction in terms of easier access to goods and services abroad, lower prices and greater variety for the Canadian consumer," said Christine McDaniel, a senior research fellow at George Mason University.

The de minimis threshold for duty-free shopping — the amount that Canadians can buy in the U.S. and bring back across the border without having to pay a duty — increased from $20 to $150. 

The new deal — set to replace NAFTA — has been criticized by the steel and aluminum sectors for not removing U.S. tariffs, but praised by the auto industry for stopping those same tariffs affecting them. The dairy sector is disappointed over concessions made to push the deal through, while the government has been praised for preserving the independent dispute resolution mechanism.

Minister of Foreign Affairs Chrystia Freeland and her team were in negotiations for over a year. (Sean Kilpatrick/Canadian Press)

The Current's Anna Maria Tremonti was joined by trade experts from all three countries to help tally up the wins and losses of the USMCA:

  • Colin Robertson, a former Canadian diplomat who helped negotiate the Canada-U.S. Free Trade Agreement, and later NAFTA. He is now vice-president and fellow at the Canadian Global Affairs Institute.
  • Antonio Ortiz-Mena, an economist who was part of Mexico's negotiating team when NAFTA was first drafted. He's now senior vice president at Albright Stonebridge Group, which provides strategic trade advice.
  • Christine McDaniel, senior research fellow at the Mercatus Center at George Mason University. Her research focuses on international trade and economics.

Listen to the full discussion near the top of this page.


Produced by The Current's Idella Sturino, Danielle Carr and Zena Olijnyk.

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