USMCA

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’s China deal, USMCA relieve Iowa farmers rocked by trade war

Iowa’s farmers were among the biggest casualties of the U.S.-China trade war, but President Trump’s historic trade agreement has them confident of a comeback. The phase one deal comes on top of trade pacts his administration has negotiated with Canada, Mexico and Japan. Those four countries are the biggest buyers of U.S. agriculture, purchasing more than $62 billion of products in 2018. “You’re going to have to get bigger tractors and a hell of a lot more land,” Trump said at a rally in Des Moines, Iowa, on Thursday, just days before the state’s caucuses to choose a Democratic candidate for president. A battleground state, Iowa gave its six electoral votes to Trump in 2016, and the state is important to his re-election bid this year. Its economy had been humming along before the outbreak of the trade war, growing at 5.4 percent and 4.2 percent in the first two quarters of 2018, before Trump imposed his first set of tariffs on Chinese goods on July 6. China responded by putting its own levies on U.S. goods, including soybeans. The nation had bought $12.5 billion of U.S. soybeans the year before, and Iowa was the largest producer, growing 562 million bushels, or about 22 percent of nation’s output. The state’s economy decelerated sharply as the tit-for-tat trade war escalated, growing just 1 percent in the third quarter before contracting 2 percent in the final three months of the year. It returned to growth in 2019, expanding at 2 percent, 1.1 percent and 1.3 percent in the first three quarters of the year. Trump responded to the trade war’s toll with two aid packages, totaling $28 billion, to help cushion the blow to U.S. farmers, whom he publicly praised. “What President Trump has done had to be done,” Roy Bardole, president of the Iowa Soybean Association, said…

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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.

Opinion/Analysis: Speaker Nancy Pelosi’s stall tactics hurt America’s economy

Wouldn’t it be wonderful if for one brief shining moment in Washington, Congress put good policy over politics — and passed a bill that would benefit American workers, investors and businesses? We haven’t had a true bipartisan victory in Washington for seemingly ages, but we are tantalizingly close to getting there. This would be the passage of the U.S. Mexico Canada Trade Agreement (USMCA). Both parties want this modernized version of NAFTA to pass. It is the legacy of Ronald Reagan and Bill Clinton. But this latest modernized trilateral trade deal for North America hasn’t happened yet because of an endless parade of stall tactics by House Speaker Nancy Pelosi. She is blockading a vote of the 435 members of the House of Representatives. The odds are very favorable that Democrats and Republicans would provide enough yays to pass it and move it on to the Senate where the trade deal would be approved by a wide margin. The whispering campaign on Capitol Hill is that Mrs. Pelosi is worried about giving Mr. Trump a “win,” so she’s inventing flimsy excuses for endlessly delaying a vote. Her strategy might have some credibility if she had credible objections to this modernized trade deal, which was carefully crafted by Donald Trump with trade negotiators from our neighbors Canada and Mexico. First, Mrs. Pelosi said she wanted more worker protections in the trade deal — but this bill actually has stronger job and wage protections for American workers (some of which I think go too far) than the old North America Free Trade Agreement. Mr. Trump insisted on those broader labor protections for the auto and other blue-collar workers in many of those Midwestern states that have seen middle class job losses. She continues to broach the idea of attaching a pension bailout bill to the trade deal. That pension bill has nothing to do with trade. It would also potentially cost taxpayers tens of billions of dollars of costs to bailout mismanaged labor union pension funds. This is Mrs. Pelosi’s way of throwing a wet kiss to the union bosses as payback for their support in helping her become Speaker. An even wilder idea is a scheme by Democrats to force Mr. Trump to allow the United States back into the Paris Climate Accord — a $100 billion tax on Americans — as the ransom for passing USMCA. These are obvious poison pills and the speaker knows it. Mr. Trump would never allow the U.S. into the climate treaty and many fiscally-conscientious Republicans would withdraw their support for the USMCA if they were forced to endorse these new giant taxpayer liabilities for obese pensions. Then there is Mrs. Pelosi’s ploy to reopen the trade deal to repeal the hard-won patent protections for American pharmaceutical companies. Mrs. Pelosi is acting as if this were a giant “giveaway” to the U.S. drug companies that will raise prices for American consumers. She has it all wrong. This provision of the trade deal actually protects America patent rights for 10 years when made-in-America drugs and “biologics” are sold in foreign countries. The USMCA — expertly negotiated by Mr. Trump’s lead trade negotiator, Robert Lighthizer — actually forces Mexican and Canadian citizens to honor our patents and pay more for American drugs. This could in the end mean lower prices for these drugs here in the United States because our two neighbors would pay their fair share to cover the billions of dollars of research costs to bring to market new life-saving drugs. Mr. Trump should be applauded for getting Mexico and Canada to agree to live by the same patent protections that we require here in America. Why would Mrs. Pelosi object to a provision that effectively curtails foreign freeloading off the medical R&D investments of American firms? Why should foreigners get special discount deals on our patented drugs that are not similarly available to American patients? Mrs. Pelosi’s cynical strategy to change the USMCA would bust the trade deal wide open and kill it. Trying to renegotiate a trade deal that has been years in the making is like putting toothpaste back in the tube. Opening up one section of the law makes every section negotiable and brings us back to square one. The victims here would be American farmers, ranchers and hard-hat manufacturing workers. The economic benefits of the USMCA have been estimated by the U.S. International Trade Commission to be almost $60 billion in higher exports each year and some 175,000 new jobs. Passage of this law would put added pressure on China to pass its own trade deal with the Trump administration. Mrs. Pelosi should put America first by putting the political games aside and bringing USCMA to a vote urgently. Democrats won back the House in the 2018 elections by promising Americans that they could govern the country. Obstruction is not governing and blocking free trade deals is no way to keep the Trump economic boom going. I hate to think that may be the point of her political tactics.

No kidding!!  Thanks to economist Stephen Moore for calling out Speaker Nancy Pelosi (D-CA) on her shameless, and shameful, politics that are just hurting everyday Americans. Stephen Moore is an economic consultant with Freedom Works and served as a senior economic adviser to Donald Trump. His latest co-authored book is “Trumponomics: Inside the America First Plan to Revive Our Economy.”