According to the Wall Street Journal and other major news sources, the U.S. and Canada have finally reached new Trade Agreement terms which will keep the North American Free Trade Agreement (NAFTA) intact. This is an exciting and positive end to months of speculation, tit-for-tat tariffs, and strong political rhetoric.

This new deal could stabilize trade in North America and allow President Trump to focus on the Chinese trade deficit and tensions that have continued to escalate during 2018.

Last Minute Trade Agreement Meets Deadline

Officials in the U.S. had previously set the end of September as a deadline for a new trade deal with Canada, one of America’s closest allies and the second largest trade partner behind China. The deal was struck on the sidelines of the United Nations General Assembly which was held last week in New York City.

President Trump had previously negotiated new trade agreement terms with Mexico, leaving Canada as the only tri-lateral trade partner yet to come to the table. It is expected that a joint announcement will be made on Monday, with details of the new trade deal.

The Associated Press reported that the deal will leave a disputes resolution process intact, something that Canada was pushing for, despite the U.S. wanting to remove it from the NAFTA framework.

Tariffs will be removed from cars traded between Canada and the U.S., which should impact up to 2.6 million units per year. Canada has also reportedly opened its dairy industry, with a similar deal that was offered in the Trans Pacific Partnership (TPP) that America pulled out of after President Trump took office.

Canada, the United States, and Mexico will now have the opportunity to review deals made between all partners.

A Major Win for the Trump Administration

The deal was reportedly brokered by Jared Kushner, senior advisor and son-in-law to President Trump.

This is a major milestone in Trump’s term, and it means that the United States will now be able to divert resources away from NAFTA negotiations, and begin to focus primarily on China. Outside of NAFTA, the President also negotiated trade concessions with the European Union earlier in the year.

The trade tensions of 2018 have been some of the worst experienced in the modern globalist trade market. Trump pledged in his Presidential Campaign to make trade fairer for the United States, and many will be hoping to see evidence of this once full details of the new NAFTA agreements are made public.