Avec Luiza Ch. Savage et Adam Behsudi
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USMCA’S SLEEPER STORIES — A abruptness commodity in the new NAFTA about a western barter accord adjoin China, and the implications it carries for Canadian sovereignty, is a admonition that there are apprenticed to be multiple, under-the-radar bomblets in a absolute barter acceding adjourned abaft bankrupt doors and beneath borderline pressure. Alex has a account of added important USMCA accoutrement that barter experts feel haven’t gotten abundant attention, including oil and water, IP, assessment fights, black capacity on duty-free shopping, a absent befalling on able visas, and alike Super Bowl ads. (More on some of these below.)
China, China, China: The accomplished book of the new Affiliated States-Mexico-Canada Acceding requires any country in the alliance to accord three months’ apprehension to added parties if it is entering into barter negotiations with a non-market economy, which the U.S. considers China to be. If one country enters into a accord with China or addition agnate economy, the aphorism allows a country to accord six months’ apprehension to aish the three-way accord and alter it with a bilateral. This provision, which has Admiral Donald Trump’s fingerprints all over it, is accepted to be a arrangement for approaching U.S. barter deals aimed at hemming in China, the Pro Canada aggregation letters with Pro Trade’s Adam Behsudi. The Europeans are acceptable to be taken ashamed at the prospect, but Mexico, which runs a huge arrears with China, is absurd to object.
The Trump administering has fabricated bright that with a new NAFTA in hand, it’s now ambience its architect on the barter war with China — and enlisting Canada and Mexico in the new “Cold War,” as our colleagues at POLITICO Europe put it. White House National Economic Council Director Larry Kudlow said the USMCA sends a arresting to China “that we are acting as one,” Adam additionally reports. “The abstemious as a accomplished now stands affiliated adjoin what I’m activity to alarm arbitrary trading practices by you apperceive who — it starts with a C and ends with an A,” he told reporters Tuesday.
The blowback in Canada: Critics of the commodity adduce this is a accident of Canadian sovereignty, as it agency the U.S. now has veto ability over Canadian barter policy. Aggregation Trudeau’s response? Much ado about nothing: Every affair in NAFTA already has the appropriate to leave and Canada acquired ascendancy in the accord by eliminating old guarantees about U.S. admission to oil and water. POLITICO was told aftermost ages by a chief Canadian official that this was, in fact, one of the top three or four best difficult issues in the end. Bottom line: The Trudeau government says it still diplomacy to go advanced with added barter ties with China — but barter experts say the commodity forecloses chargeless barter talks anytime soon.
The realpolitik: Chargeless barter with China is not accepted with Canadians — and annihilation was activity to appear afore the aing acclamation anyway. Any absolute advance on chargeless barter with China would booty years to negotiate.
— Three canicule afore absolute the USMCA deal, Admiral Donald Trump reportedly said at a fundraiser that Adopted Abbot Chrystia Freeland “hates America.” Freeland, who led the NAFTA talks for Canada, lived with her ancestors in the Affiliated States back she was a journalist.
— Quebec’s anew adopted premier-designate says he wants acceptable relations with Ottawa, and has acclimated beneath anarchic accent than added Quebec politicians on the dairy concessions in the USMCA. But François Legault put himself on a blow advance with the Trudeau government Tuesday in his aboriginal post-election columnist conference, vowing to cut clearing to the arena by 20 percent and to use a attenuate built-in override to band accompaniment advisers of their appropriate to abrasion religious accouterment like hijabs. He additionally promised acclamation ameliorate in this term, which could end the acceptable first-past-the-post system.
— The Canadian Parliament has now formally voted to band Aung San Suu Kyi of her honorary Canadian citizenship.
— While Trump has criticized the aggressive spending of allies, his NATO adumbrative is praising Canada’s aggressive contribution.
— Endangered House Republicans are actuality pulled in two directions, with affair assumption advancement them to stick to bounded issues and activists ambitious that they go abounding Trump in aing month’s midterms.
C’EST MERCREDI — Welcome to POLITICO Pro Canada’s morning newsletter. Send tips, acknowledgment and song requests to [email protected] in Washington or on Twitter @Gardner_LM and @Alex_Panetta in Ottawa.
“Every night my dream’s the aforementioned / Aforementioned old burghal with a altered name / They’re not advancing to booty me abroad / I don’t apperceive why, but I apperceive I can’t stay”
PRESIDENT DONALD TRUMP SAYS A RED WAVE IS COMING ON ELECTION DAY. Is he appropriate or will the course about-face blue? Compete adjoin the nation’s top political minds in the POLITICO Playbook Acclamation Challenge, by accurately acrimonious the acceptable candidates in some of the best aggressive House, Senate and gubernatorial contest in the country! Win alarming prizes and abiding aloof rights. Sign up today! Visit politico.com/playbookelectionchallenge to play.
LNG LONG GAME — A celebrated activity activity agency added Canadian activity will leave the abstemious for Asia, Pro Energy’s Ben Lefebvre reports. Shell appear Tuesday it would accompany a accumulation of Asian companies in costs a abounding accustomed gas consign activity in British Columbia. Prime Abbot Justin Trudeau’s appointment accustomed the activity as the “largest clandestine area advance project” in Canada’s history. Construction is accepted to activate this year, with the consign terminal aircraft out gas by 2024. The Canadian activity could complicate diplomacy for two U.S.-based LNG projects in Louisiana and Alaska, Ben writes.
DE MINIMIS MURKINESS — The capacity of USMCA’s online arcade accoutrement accept prompted some head-scratching. Online acceptation advocates say the accomplished book avalanche abbreviate of the topline, which touts added advanced rules. In a nutshell, Canada agreed to a two-tiered de minimis beginning for taxes and duties, added two altered allowances for approved mail and bagman services. How will this three-headed arrangement be implemented? It will be a aloft claiming for companies operating in North America, who now accept to accede with three altered thresholds — and in altered currencies — said Canada-U.S. barter advocate Dan Ujczo.
SUPER BOWL SPECIAL — Despite the account of tweets Trump has beatific admonishing NFL players, the alliance denticulate a win in USMCA — it armament Canadian telecom regulators to aish their accommodation to air the Super Bowl in Canada with U.S. ads, rather than the added Canadian spots it sold. NFL Commissioner Roger Goodell accepted the accent — and Trump’s “leadership and determination” in absolute the issue. (Here’s a added dive on the affair from back our Alex was at the Canadian Press.) But don’t fret, Canadian NFL fans: You can still watch this amazing comedy in any rebroadcast.
PERSPECTIVE — Did Trump account a acceptable accord for the activity larboard with USMCA? Edward Alden of the Council on Adopted Relations thinks so, adage the new accord has done added to abode Democrats’ activity demands “than any Democratic admiral anytime achieved.”
TRUMP TOOTS HIS OWN HORN TO CONGRESS — The president, not accepted to be shy about his achievements, beatific Congress a agenda Tuesday touting the new North American barter accord in accurate Trump style. “The barter deal, USMCA, has accustomed absurd reviews. It will go bottomward as one of the best anytime made, and it will additionally account Mexico and Canada!” said Trump’s agenda on official White House card that was acquired by Morning Trade. The agenda was beatific in an email from the White House aldermanic diplomacy office.
The letter came absorbed with some adulatory account coverage. The banderole from a New York Post announced, “THERE’LL BE NO MOURNING NAFTA.” The commodity (hopefully argot in cheek) highlights that in the history of deals, according to Trump, the acceding ranks aloft Moses accepting the Ten Commandments, the acquirement of Manhattan, the Louisiana Acquirement and the end of World War II. An absorbed New York Post beat declares: “Let art of this accord be admonishing to China.” And a Wall Street Journal commodity addresses Trudeau’s efforts to advertise the accord at home. The sub-headline of that adventure was apparently adorable to Trump: “Prime abbot touts new adherence on trade, but his political rivals say he capitulated.”
AGRICULTURE: The U.S. Administration of Agriculture has already doled out $53 actor in absolute payments to farmers afflicted by castigating tariffs, Pro Agriculture’s Ryan McCrimmon reports. An estimated $78 actor in added aid is affective through the system, a administration agent said. The U.S. dairy industry, which is amid the sectors that accept accustomed the best advice so far, had a apathetic acknowledgment to the USMCA, and it’s cryptic that the added admission to the Canadian dairy bazaar promised in the accord does abundant to abate the furnishings of added countries’ backfire over Trump’s duties.
CYBERSECURITY: Acclamation experts apprenticed the U.S. federal government Tuesday to animate states to stop application wireless modems in voting systems to aegis actionable after-effects from hackers, Pro Cybersecurity’s Eric Geller writes. “Connecting to the accessible networks alike briefly during apparatus maintenance, programming, preelection testing, poll artisan training, or on Acclamation Day can accomplish the arrangement accessible to attacks that could appulse accepted or approaching acclamation results,” the accumulation wrote in a letter to the U.S. Administration of Homeland Security and the Acclamation Assistance Commission. Canada has been dispatch up its efforts to bulwark adjoin adopted election-meddling.
— “Here’s what it will booty to get NAFTA 2.0 in abode afore the aing election.” Global News.
— “Trump’s big action with Canada over dairy gets the U.S. alone $70 actor added than TPP barter deal.” CNBC.
— Canadian Donna Strickland becomes the aboriginal woman in 55 years to win a Nobel Prize in physics.
— “Saskatchewan, federal governments to advertise basement accord account about $1 billion.” Saskatoon StarPhoenix.
— “Tories adduce voting irregularities in New Brunswick election, seek cloister order.” The Canadian Press.
— “Ontario’s law guaranteeing according pay and minimum ailing canicule is on the block, Premier Doug Ford says.” The Ottawa Citizen.
— “Islamic Society of Nunavut opens aliment coffer in Iqaluit.” CBC News.
9 a.m. — The Peterson Institute for International Economics holds a altercation on “IMF Reform: The Unfinished Agenda.” 1750 Massachusetts Ave. NW, Bergsten Appointment Center.
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