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E-NAFTA DRIVE YOU MAD

What is the Nafta deal dispute, what is Trump’s stance on the trade agreement and which countries are involved?

The new agreement will lessen trade tariffs between the three countries

FOR 14 months the dispute between three major world powers rumbled on before coming to an end on October 1, 2018.

The North American Free Trade Agreement between the United States, Canada and Mexico was finally struck after a few tense final weeks and a last-minute scramble.

 Donald Trump hailed the Nafta agreement as 'a wonderful new trade deal'
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Donald Trump hailed the Nafta agreement as 'a wonderful new trade deal'Credit: Reuters

What is Nafta?

The North American Free Trade Agreement (Nafta) is an agreement signed by Canada, Mexico and the USA to form a trilateral trade bloc in North America.

The agreement came into force on January 1, 1994, and eliminated most tariffs on trade between the three nations.

However, many tariffs still remained an issue, especially those concerning Canada's dairy industry and Mexico's car export business.

Mr Trump had repeatedly threatened to impose tariffs on imported automobiles.

 Canadian Prime Minister Justin Trudeau said that striking the deal was no easy feat
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Canadian Prime Minister Justin Trudeau said that striking the deal was no easy featCredit: AFP or licensors

What is the Nafta deal dispute?

The original Nafta agreement included some tariffs which ground to a halt trade on certain goods.

For example, Canada limited how much milk, cheese and other dairy products could come in from the United States.

But under the new agreement, the US will allow Canadians better market access to provide Americans with their dairy products while US dairy, poultry and eggs will be allowed to move the other way.

 Mexican president Enrique Peña Nieto welcomed the deal
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Mexican president Enrique Peña Nieto welcomed the dealCredit: Getty Images - Getty

Where does Trump stand on it?

Donald Trump previously branded the deal "the worst trade deal ever made" during his pitch to become president.

He now calls the updated agreement - renamed the United States-Mexico-Canada-Agreement (USMCA) - "a wonderful new trade deal".

Trump had previously been wary of Canada and Mexico's ability to levy tariffs in order to secure trade concessions.

Donald Trump says it's a privilege for every country to do business with US as he hails Nafta replacement trade deal and slams China
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