The Trump administration's new trade deal with Canada and Mexico leaves much of the old North American Free Trade Agreement intact. There are some key differences, however, particularly when it comes to the dairy and auto industries.
The updated agreement, the subject of more than a year of intense negotiations between the countries, includes some high-profile compromises from both Washington and Ottawa.
The U.S., for example, won expanded access to Canadian markets for U.S. dairy producers, long a major sticking point for the Trump administration. For its part, Canada won a key concession from U.S. negotiators that preserved a dispute resolution process.
The updated agreement also includes key provisions governing the auto industry that will encourage more U.S. car production while protecting Canadian and Mexican companies from President Donald Trump's threats of wider U.S. tariffs.
Here's a quick look at key provisions:
- It will require 75 percent of auto components to be built in North America, up from 62.5 percent.
- Forty to 45 percent of auto components will have to be made by laborers making at least $16 an hour.
- In a concession to Mexican and Canadian business, the deal largely exempts passenger vehicles, pickup trucks and auto parts from possible Trump administration tariffs.
- U.S. farmers are getting slightly more access to Canadian dairy markets.
Trump had long threatened to scrap the deal in full, so the changes and the rebranding offered the president a chance to laud the deal as a promise fulfilled.
"Throughout the campaign, I promised to renegotiate NAFTA, and today we have kept that promise," Trump said Monday in announcing the deal. Later in the day, he pushed back on the notion that it's merely an updated version of the previous pact.
"It's not NAFTA redone. It's a brand-new deal," the president said during a news conference in the White House Rose Garden.
The deal is subject to approval by Congress.