Five key takeaways

Autos

U.S. President Donald Trump threatened to place tariffs on Canada’s auto industry. But the agreement actually raises the number of vehicles Canada can export to the U.S. Canada also appears to have negotiated an exemption on any future tariffs that the U.S. imposes on vehicle imports.

Dairy

The U.S. demanded greater access to Canada’s dairy market. Canada resisted, but in the end, American farmers were given access to 3.6% of Canada's current dairy market. As well, recent import restrictions on so-called “Class 7” dairy products were lifted.

Dispute Resolution

Canada was adamant in its demand that Chapter 19 (an independent dispute resolution mechanism) must continue to be part of the agreement. Chapter 19 forces all three countries to abide by the agreement. It was strongly opposed by the U.S. which would have preferred that trade disputes be decided in U.S. courts.

Sunset Clause<

Canada was steadfast in opposition to the U.S. demand that the trade deal expire in five years, without the agreement of all three parties. However, the five-year expiry period was lengthened to a 16-year term with a review in six years.

Steel and aluminum tariffs remain<

Canada had hoped that the tariffs on steel and aluminum the U.S. had imposed would be lifted. But they may remain until an agreement on quotas can be reached.


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This document, published by Sun Life Global Investments (Canada) Inc., contains information in summary form. This document is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by Sun Life Global Investments (Canada) Inc. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. Information contained in this document has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy. This document may contain forward-looking statements about the economy, and markets; their future performance, strategies or prospects. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon. © Sun Life Global Investments (Canada) Inc., 2018. Sun Life Global Investments (Canada) Inc. is a member of the Sun Life Financial group of companies.