US President Donald Trump has lauded a new trade deal agreed between the US, Mexico and Canada as “incredible”. After reaching a trade agreement with Mexico a few weeks ago, the US this week concluded a similar agreement with Canada.

Following months of bitter negotiations between the US and its traditional allies Mexico and Canada, the old North American Free Trade Agreement (NAFTA) will give way to an agreement simply called the US-Mexico-Canada Agreement (USMCA).

“We have successfully completed negotiations on a brand new deal to terminate and replace NAFTA with an incredible new US-Mexico-Canada Agreement (USMCA),” said President Trump. “We have negotiated this new agreement based on the principle of fairness and reciprocity. To me this (reciprocity) is the most important word in trade because we’ve been treated so unfairly by so many nations all over the world. But we’re changing that,” he added.

President Trump has made much of Canadian protections for its dairy industry since taking office and had threatened to tear up the NAFTA agreement if Canada didn’t relax controls.

According to US media reports, Canada will remove its class six and class seven pricing structure, which helps protect Canadian farmers and blocks imports, six months after USMCA comes into effect. The Canadian pricing system also had the effect of making Canadian exports of dairy more competitive than their US counterparts on global markets.