Some may call it a Christmas miracle; others may say it’s just Trump being a great President and working for the good of our nation. Regardless, when it comes to passing the final version of the United States-Mexico-Canada Agreement (USMCA) even Pelosi admits “there is no question of course that this trade agreement is much better than NAFTA.”
Taking to Twitter, Trump touted the new policy and boasted it “will be the best and most important trade deal ever made by the USA” unlike NAFTA, which he referenced as “our Country’s worst Trade Deal.” One benefit is a boost to auto manufacturing; the USMCA requires 75% of a vehicle’s parts to be made in either the U.S., Mexico or Canada, up from the current percentage of 62.5%.
President of the American Automotive Policy Council, Matt Blunt, expressed enthusiasm in a statement saying “the USMCA allows the US auto industry to remain globally competitive by ensuring vehicles and auto parts are able to move freely across country lines.” Furthermore, a Trump administrative report projected the deal would create 76,000 auto jobs over five years, resulting in a “more than 7% increase in employment over the current 990,000 US auto workers.”
In relation to labor laws, American workers were displeased at all the jobs sent to Mexico because wages are lower. Impressively, the USMCA deal has the backing of not only Pelosi but the AFL-CIO, which is the largest federation of unions in the United States. AFL-CIO President Richard Trumka said, “for the first time, there truly will be enforceable labor standards – including a process that allows for the inspections of factories and facilities that are not living up to their obligations.” Dairy farmers also benefit from the new deal which will keep tariffs on most agricultural products being traded amongst the three countries at zero.
