This article was originally published on ETFTrends.com.
The U.S. capital markets all gained on news that the United States and Canada reached an agreement to revamp the North American Free Trade Agreement, which will be called the United States-Mexico-Canada Agreement. Canada ETFs all gained following the announcement--iShares MSCI Canada ETF (EWC) was up 1.07%, Invesco CurrencyShares Canadian Dollar (FXC) gained 0.91%, SPDR MSCI Canada StrategicFactors ETF (QCAN) rose 0.53%, and Invesco Canadian Energy Income ETF (ENY) was up 0.87% as of 12:00 p.m. ET.
U.S. President Donald Trump held a White House press conference following the announcement of the new deal, praising the newly dubbed "USMCA" agreement.
"We have negotiated this new agreement based on the principle of fairness and reciprocity," said Trump. "To me, it's the most important word in trade because we have been treated so unfairly by so many nations all over the world and we're changing that."
"The agreement will cover nearly $1.2 trillion in trade, which makes it the biggest trade deal in the United States history," Trump added.
Trump Thanks Mexico, Canada
Trump took time to thank the leaders of both Mexico and Canada, in particular, after Canadian Prime Minister Justin Trudeau caught the ire of Trump who would communicate his disapproval for the prime minister through Twitter.
"I have to certainly give my highest regards to Prime Minister of Canada Justin Trudeau," said Trump. "A lot of stories came out about Justin and I having difficulty together though we did over the trade deal, but I'll tell you it's turned out to be a very good deal for both and a very good deal for all three."
With an initial trade deadline set for August 31 that extended beyond that date, Canada’s top trade negotiator Chrystia Freeland said a deal has not yet been reached to revamp the NAFTA agreement between the U.S. and Canada. Earlier that same week, the U.S. struck a deal with Mexico to effectively eliminate the NAFTA name and create the United States-Mexico Trade agreement.
The deal struck with all three nations would allow for more market access to U.S. dairy farmers with Canada capping automobile exports to the U.S.. The U.S., Mexico and now Canada are expected to sign the agreement by the end of November, which would then go to Congress for approval.
"Once approved by Congress, this new deal will be the most modern, up-to-date and balanced trade agreement in the history of our country," Trump announced.
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