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WASHINGTON-The Trump administration aims to step up trade talks with other countries, using its new pact with Canada and Mexico as a template to redefine rules on everything from foreign exchange and labor markets to how US partners do business with China.

The Trump administration had threatened to proceed with a Mexico-only trade pact as U.S. talks with Canada foundered.

But the country's foreign minister said she would only sign something that was good for Canada and the middle class.

Embracing the U.S. -Mexico-Canada Agreement during a Rose Garden ceremony, Trump branded the trade deal the "USMCA", a moniker he said would replace the 24-year-old North American Free Trade Agreement, or NAFTA.

It will reportedly free up the Canadian dairy market to American farmers and address concerns over possible USA tariffs on Canadian vehicle exports.

President Trump, however, says he is not hopeful the next deal will be approved by Congress in the next year, saying 2020 election politics could hold up passage. -Canada trade. Canada's tariffs on dairy imports can approach 300 percent. But it's not the final step in the lengthy path to congressional approval on an issue that has served for two decades as a political football for USA industrial policy and the loss of manufacturing jobs.

Tensions between the United States and Canada started at the top, with relations strained between Trump and Trudeau after acrimonious talks in Quebec City in June at a G7 summit.

"The dairy farmers across this country have faced challenges with those trade deals and I said that we understand that and we pledge to work with them, not to just to compensate them, but [on] what compensation is required".

Trump said he spoke to both leaders on Monday. Mexican Foreign Minister Luis Videgaray tweeted that the deal was good for his country "and for North America".

Above that level, USA dairy farmers will still face Canada's punishing tariffs.

However, a few issues like United States tariffs on steel amd aluminum imports, along with retaliatory tariffs were left out of the USMCA deal.

On the other hand, the United States will give more scope to Canadian dairy, peanuts and similar products in its market. The United States pressured Canada and Mexico to raise the dollar amount that shipments must reach before they become subject to import duties.

If repeated in other US negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system.

"You can bet the ask is going to be significant here", said Martha Hall Findlay, chief executive officer of the Canada West Foundation in Calgary.

Those remarks set the stage for a bitter struggle over trade, with Trump threatening to drop Canada from the regional trade pact altogether if it didn´t yield to key United States demands.

In fact, the US has always been a manufacturing powerhouse and by some projections - before the current deal - expected to be No. 1 in 2020.

The new deal will see Canada's duty-free amount go from $20 to $150, meaning Canadians shopping for USA goods online will not have to pay duty on purchases that are $150 or less.

In addition, it adds provisions to prevent "manipulation" of the trade rules, including covering currency values, and controls over outside countries trying to take advantage of the duty-free market, officials said.

Wenweipo, a pro-Beijing newspaper based in Hong Kong, ran an article on October 2, titled, "Canada and the U.S. Got What They Need and Mexico is the Loser", arguing that the terms of the new agreement were akin to concessions that would hurt Mexico's economy.


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