The agreement will extend patents on biologic drugs, which includes the Crohn's disease medication Humira, from eight to 10 years. It will be interesting to see how it can reconcile the concessions made in the negotiation of this agreement with its goal of prosperity. The medicines are among the most costly and innovative on the market and are a major driver of drug spending.
Despite progress made to overhaul NAFTA, Trump still faces several other trade disputes around the world, not least with China, where the president has slapped a tariff on $200bn on Chinese imports.
Trump said last week he didn't like Canada's trade negotiator, in an apparent reference to Freeland. Those costs could then get passed on to consumers in the form of higher auto prices.
Market sentiment was bolstered as investors expected the new accord would help remove uncertainties, experts noted. Current U.S. law protects biologic drugs from generic competition for 12 years, but some Democrats, including in the Obama administration, have pushed to lower that to seven years as a way to speed cheaper generics to the market and lower drug spending. Trump withdrew the United States from the pact on his third day in office. Without Chapter 19, these cases would be resolved in court in the country imposing the duties, so the USA would be arguing on home turf.
Canada could have lost 60,000 jobs in a trade war and taken a 1 percentage point hit to its GDP - a significant drop because Canada's economy is projected to grow just 2 percent next year, according to estimates from the C.D. Howe Institute, a Toronto-based think tank.
The trilateral agreement covers US$1-trillion in trade, including agricultural products, intellectual property and online-consumer purchases.
"When this got started, Canada was the teacher's pet and Mexico was the problem child", said Michael Camunez, president of Monarch Global Strategies and a former U.S. Commerce Department official.
However, she says the amount and type of compensation will be worked out in coming months while Canada, the United States and Mexico all work to ratify the agreement reached late Sunday.
The renamed U.S. -Mexico-Canada-Agreement (USMCA) addresses environmental issues including invasive species, pollution from ships, sustainable forestry, plastics pollution, and ozone protections.
Canada was adamant about getting the "right-deal", meaning agreement could not be reached by 31 August, which President Donald Trump had hoped for.
President Donald Trump said he plans to sign the updated version of NAFTA by the end of November, which will then be submitted to Congress for approval. Those are the two chapters that ended up in the new deal.
After a year of often heated talks, a new trade agreement has been reached between Canada, the US and Mexico.
The agreement largely prohibits restrictions on the flow of business-related data across borders and prohibits countries from requiring companies to locate their data storage or computing infrastructure within the borders of that country. So you'll soon have both B.C. and USA wines to pick from while buying groceries. Canada, for instance, will allow tax- and duty-free shipments worth up to 40 Canadian dollars (about $31), up from 20 Canadian dollars ($16) under NAFTA.
Flanked by Foreign Minister Chrystia Freeland who led the Canadian negotiating team, he welcomed Mexico's concessions on auto worker wages, an exemption for Canada's cultural industries, and the keeping of binational dispute resolution panels on which he'd staked his political future.
The U.S. medical device industry seems to have chalked up some victories.