The Congress and Administration have reached a deal on the US Mexico Canada Trade Agreement (USMCA). This bipartisan agreement is generally an update to the North American Free Trade Agreement, formerly adopted in 1994 among the three nations.
The Democrats fought for stronger labor enforcement rules and pressured the administration to beef up rules on protecting the environment. The administration also dropped a provision that would have given drug companies ten years of data exclusivity for certain drugs to allow for quicker access to generic drugs in the future.
Though not a major overhaul of NAFTA, the USMCA does include notable changes to rules governing production of automobiles and parts, and resolving disputes between governments and private investors.
The deal contains new or updated provisions on financial services, digital trade, as well as other areas of commerce that were not major factors when NAFTA was enacted in 1994. “It is infinitely better than what was initially proposed by the administration,” Pelosi said. “It’s a victory for America’s workers.”
While last week was a good week with the administration thinking they had a sealed deal, troubling signs began to emerge. Politico reported that Mexico’s top trade negotiator is outraged over language in the U.S. bill to implement the new North American trade agreement, potentially complicating the House’s plans to pass the USMCA this week. Rumblings out of Canada suggest that aluminum has emerged as a sticking point in Parliament for ratifying the latest agreed-upon version of the new North American trade agreement, with the Bloc Québécois already saying it won’t back the latest deal.”
However, the House passed the USMCA (H.R.5430) on an overwhelming bipartisan vote of 385 to 41. Senator McConnell has stated that the Senate will not take up the bill until after the impeachment trial in January, frustrating moderate Democrats.
Stay tuned!