The new trilateral trade deal will affect consumers

After a year of often heated talks, a new trade agreement has been reached between Canada, the United States and Mexico. Here are some key details of the trade pact that replaces NAFTA, which will have an impact on Canadian consumers:

Q What’s the deal with NAFTA and what’s going on?

A NAFTA is the North American Free Trade Agreement, which came into force in 1994. Canadian, U.S. and Mexican politicians have been negotiating for months over what to keep, what to lose and what to compromise within the agreement, which oversees all trade relations between the three countries.

On Sunday, it was announced that the parties had reached a new deal, which is now being referred to as the U.S.-Mexico-Canada Agreement — or USMCA.

Q How will it affect the dayto-day life of consumers?

A The agreement is still awaiting ratification in all three countries, but consumers in British Columbia will soon see some changes to where they can buy U.S. wine, in U.S. dairy-product selection and with duty-free limits.

I like wine. Tell me more. Currently, B.C. only allows for locally produced wines to be sold inside grocery stores. For imported wines, you generally have to go to a standalone liquor store.

However, the new agreement has British Columbia agreeing to scrap the restrictions that prevent U.S. wines from also showing up on grocery store shelves. So you’ll soon have both B.C. and U.S. wines to pick from while buying groceries.

Q What about dairy products?

A The new deal gives U.S. dairy producers more access to Canada’s market. Under the USMCA, Canada is offering the United States a 3.6-percent share of the dairy market. Any dairy imports above the 3.6-per-cent threshold still face Canada’s punishing tariffs, which were a sticking point in negotiations with the United States.

This all means Canadians will have more cheese and ice-cream options at the grocery store, but they won’t necessarily be cheaper than local dairy products. With the exchange rate, the prices may end up being about the same.

Q Does this mean duty-free limits will change?

A Previously, Canadians buying online from the U.S. could only purchase up to $20 worth before having to pay import duty. That limit has now been raised to $150.