The International Trade Council is pleased to announce that the US, Mexico, and Canada have finalized a trade deal to replace the 25-year-old North American Free Trade Agreement (NAFTA). Representatives from the three countries signed the pact in Mexico, marking a significant milestone in the renegotiation process.
The agreement was reached after Democrats in the US Congress stated they would support the deal when the White House agreed to strengthen labor and environmental rules. While the three countries concluded their talks more than a year ago, the deal requires approval by legislatures in all three countries before it can be implemented.
House Speaker Nancy Pelosi declared the revised pact "infinitely better" than the original deal announced last year. US President Donald Trump also celebrated the agreement, calling it "the best and most important trade deal ever made by the USA."
The US-Mexico-Canada Agreement (USMCA) addresses key issues in the original NAFTA, such as requirements for a higher share of North American-made parts for a vehicle to qualify for tariff-free treatment. Democrats were also pushing for changes to strengthen enforcement of labor and environmental rules and provide more flexibility governing drug pricing.
The International Trade Council is optimistic about the potential benefits of the USMCA and encourages the swift approval by the legislatures of the three countries. The agreement will help maintain strong trade relationships between these key partners and provide increased stability for the business communities in each nation.