NAFTA

USMCA Replaces NAFTA as Trump Delivers on One of Biggest Promises

The U.S.-Mexico-Canada (USMCA) trade agreement formally replaced the North American Free Trade Agreement (NAFTA) on Wednesday, meaning that President Donald Trump has now officially completed one of the biggest promises of his insurgent 2016 campaign. Commemorating the occasion, President Trump issued a lengthy statement laying out the success: “When I ran for President, I made a solemn promise to the American people that I would end the job-killing failure called the North American Free Trade Agreement (NAFTA) and replace it with a better deal for our workers, farmers, ranchers, and businesses—the men and women of Main Street who built the most prosperous and equitable economy in human history,” Trump said. “Today, with NAFTA ending forever and the United States-Mexico-Canada Agreement (USMCA) entering into full force, our grateful Nation pays tribute to America’s workers and celebrates their ability to overcome decades of bad deals and failed policies. The USMCA is the largest, fairest, and most balanced trade agreement ever negotiated and contains innovative provisions to help grow the economy and support American jobs. It is a tremendous victory for our manufacturers and autoworkers, meaning more cars and trucks will be produced in the United States. The USMCA is also a historic breakthrough for American agriculture. Canada will provide greater access for American dairy products, poultry, and eggs, and finally give fair treatment to American-grown wheat. In addition, the USMCA includes groundbreaking provisions to address digital trade, services, small business, and more, which will protect America’s competitive edge in technology and innovation.” Trump’s statement continued by thanking Congress for approving the deal, which it did with huge bipartisan majorities in both chambers. The USMCA passed the U.S. Senate last year 89-10, a sign of massive bipartisan support. Then, later, it passed the U.S. House 385-41, another strong bipartisan showing. Trump said: ” The strong and overwhelming support the USMCA received from both parties in Congress—as well as from labor unions, business organizations, and champions of agriculture—shows just how much this trade agreement will benefit all Americans. Hundreds of thousands of jobs will be added to the economy,” Trump said. “The United States appreciates the efforts of our partners in Mexico and Canada to ensure that North America is strengthening its economic ties while working to combat the coronavirus pandemic. To mark this historic achievement, I look forward to welcoming President Andres Manuel Lopez Obrador of Mexico to the White House on July 8, 2020, to continue our important dialogue on trade, health, and other issues central to our regional prosperity and security.” Kayleigh McEnany, the White House press secretary, issued her own statement as wel, praising the jobs that will be created as a result of the USMCA going into effect. She said: ” Today, the United States-Mexico-Canada Agreement (USMCA) will go into effect. Thanks to the bold leadership of President Trump, the agreement will mean stronger economic growth, more jobs for American workers, and fairer trade for our country. President Trump has delivered for American manufacturers, farmers, businesses, and workers. The agreement will drive job creation and includes the strongest, most advanced, and comprehensive set of labor provisions of any United States trade agreement. American farmers will have access to fairer markets in Canada and Mexico, opening up more opportunities to export their goods. USMCA will strengthen American manufacturing, including incentivizing investment in high paying auto manufacturing jobs here in the United States. Just as promised, President Trump is replacing the disastrous North American Free Trade Agreement, which drove American jobs overseas for years. USMCA is a fair deal for American workers and finally brings our trade relationship with Canada and Mexico into the 21st century.” The International Trade Commission estimates that the USMCA will create between 176,000 and 589,000 jobs in America. In automotive manufacturing alone, the U.S. Trade Representative’s office estimates, there will be another $34 billion in investments and 76,000 new jobs for Americans. The U.S. Trade Representative’s office also says that several restrictions from Canada on American dairy, wheat, and wine producers end as a result of USMCA as well.

While not perfect, this is definitely a BIG step in the right direction.  Yes, it’s a big win for President Trump in this election year.  But, more importantly, it’s a big win for American workers and American jobs.  Excellent!!      🙂

Trump signs USMCA, paving way for job market boom

President Trump signed the historic United States-Mexico-Canada Agreement, replacing the Clinton-era North American Free Trade Agreement that he called a “disaster.” The USMCA, which is the biggest trade deal of all-time, covers more than $1.3 trillion of commerce, and is the second major trade deal secured by the Trump administration this year. The agreement has already been ratified by Mexico, but not yet by Canada. “You’re going to see more jobs all across the economy, in the automobile sector, in the agricultural sector and of course in the energy sector as well,” Energy Secretary Dan Brouillette told FOX Business’ Maria Bartiromo on Wednesday. The USMCA requires 75 percent of automobile components be manufactured in the United States, Canada or Mexico in order to avoid tariffs. By 2023, some 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour. The agreement is expected to create 80,000 new jobs tied to the auto industry and bring in up to $30 billion of new investment in the sector. The pact will also open new markets for American wheat, poultry and eggs, among other things. “This is a colossal victory for our farmers and ranchers,” Trump said at the signing ceremony. “Everybody said this was a deal that could not be done,” he added, “but we got it done.” Once fully implemented, the USMCA is expected to lift U.S. gross domestic product by as many as 1.2 percentage points and create up to 589,000 jobs, according to the International Trade Commission. After the trade deal was approved by the Senate on Jan. 16, by a vote of 89 to 10, Sen. Charles Grassley, R-Iowa, hailed it as a “major achievement for President Trump and a very big win for the American people.” The signing of the USMCA comes nearly two weeks after Trump inked an initial trade deal with China. Combined, the two agreements encompass more than $2 trillion worth of trade and could add as much as 1.7 percentage points to U.S. economic growth. The U.S. economy expanded at a 2.1 percent pace in the three months through September. “We’re restoring America’s industrial might like never before,” Trump declared at a campaign rally in Wildwood, N.J., on Tuesday evening. “They’re all coming back. They want to be where the action is.”

This is a HUGE win for Trump, and was entirely bi-partisan.  Not surprisingly, Bernie said he’d get rid of it, should he (God-forbid) become President.

Canada, US confirm new deal with Mexico updating NAFTA

The United States and Canada confirmed Sunday they had reached a deal on a “new, modernized trade agreement,” which is designed to replace the 1994 NAFTA pact. In a joint statement the two nations said the new deal would be called the United States-Mexico-Canada Agreement (USMCA). Canadian Prime Minister Justin Trudeau said following a cabinet meeting, “It’s a good day for Canada.” Trudeau plans to address the media on the deal on Monday. President Trump tweeted about the deal on Monday morning, calling it a “great deal for all three countries” and that it will open markets to farmers and manufacturers. “Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico,” Trump tweeted. “The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduce Trade Barriers to the U.S. and will bring all three Great Nations closer together in competition with the rest of the world. The USMCA is a historic transaction!” The agreements reportedly will boost U.S. access to Canada’s dairy market and protect Canada from possible U.S. autos tariffs. Trump’s administration has said Canada must sign on to the text of the updated NAFTA by a midnight Sunday deadline or face exclusion from the pact. Washington has already reached a bilateral deal with Mexico, the third NAFTA member. If Canada did not sign a new deal, Trump had threatened to impose steep tariffs on all automotive imports. In late August, the U.S. and Mexico negotiated a new pact to replace NAFTA, snubbing Canada in the process. President Trump has also repeatedly suggested that he might leave Canada out of the new agreement — which would be called the “United States-Mexico Trade Agreement.” Trump blames NAFTA for the loss of American manufacturing jobs and wants major changes to the pact, which underpins $1.2 trillion in annual trade. Markets fear its demise would cause major economic disruption. Negotiators from both sides spent two days talking by phone as they tried to settle a range of difficult issues such as access to Canada’s dairy market and U.S. tariffs. As part of any agreement, Canada looks set to offer increased access to its highly protected dairy market, as it did in separate pacts with the European Union and Pacific nations. Officials have blown through several deadlines since the talks started in August 2017.

Trump makes trade agreement with Mexico to replace NAFTA, puts pressure on Canada to deal

President Trump announced a tentative trade deal Monday with Mexico to replace the three-way North American Free Trade Agreement, which he called a big win for U.S. workers and his get-tough trade agenda. Mr. Trump said the new deal was better for the U.S. and rendered obsolete the 24-year old agreement between the U.S., Mexico and Canada. “It’s a big day for trade. It’s a big day for our country,” said Mr. Trump, speaking in the Oval Office. “A lot of people thought we would never get here because we all negotiate tough. We do. So does Mexico.” He wanted to get rid of the name NAFTA because it had “a bad connotation because the United States was hurt very badly by NAFTA for many years,” he said. The breakthrough increases pressure on Canada, which has been on the sidelines, to rejoin negotiations with the U.S. and Mexico. It also puts other countries on notice that Mr. Trump isn’t backing down from his America-first trade policies and his use of tariffs to force concessions from major trading partners such as China and the European Union. Wall Street celebrated the news, pushing the Dow Jones Industrial Average up more than 250 points to above 26,000. The deal set higher “Made in America” standards for vehicles, boosted wages for Mexican workers, kept agricultural products tariff-free, increased environmental standards in Mexico and overhauled rules to protect copyrights and intellectual property. The agreement would last 16 years, with an opportunity to review it and adjust the terms after six years. Mr. Trump said he wanted to terminate NAFTA and get the new deal signed with Mexico, and maybe Canada too, as soon as possible. U.S. Trade Representative Robert Lighthizer said the U.S.-Mexico deal would be submitted to Congress for a required 90-day holdover, setting up a signing ceremony in November. However, scrapping NAFTA and creating a new bilateral deal could run afoul of the negotiating authority that Congress granted the president. If Congress has to ratify a new trade pact, it could turn into an arduous debate. Rep. Kevin Brady, chairman of the House Ways and Means Committee, commended Mr. Trump on forging a deal for the benefit of American workers, farmers and local businesses. “I look forward to carefully analyzing the details and consulting in the weeks ahead with my colleagues and constituents to determine whether the new proposal meets the trade priorities set out by Congress under Trade Promotion Authority,” said the Texas Republican.

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