US, Canada, Mexico Agree To Replace NAFTA, Bringing Relief To US Workers, Farmers

The United States, Canada, and Mexico agreed to sign a new trade deal to “terminate and replace” the 24-year-old North American Free Trade Agreement (NAFTA).

President Donald Trump says the new agreement will transform North America into a “manufacturing powerhouse.”

The new trilateral trade pact will be named the U.S.–Mexico–Canada Agreement, or USMCA. Trump called the deal “historic news for our nation and indeed for the world.”

The partners have agreed to stronger rules of origin for autos and automobile parts that exceed those of both the original NAFTA and the Trans-Pacific Partnership.

The new deal has a 16-year lifespan, with a review period after six years, providing more certainty for business investments. According to the White House, the review period gives the United States significant leverage in pushing partners to comply with their obligations.

The steel and aluminum tariffs that the United States imposed on Canada and Mexico will be dealt with separately.

The trading partners now have 60 days to finalize the legal text and sign the agreement.

The USMCA can give Republicans another victory to point to, especially in the heartland and industrial Midwest, according to Ford O’Connell, a political analyst and Republican strategist.

“It certainly is important in the overall calculus for Republicans in their quest to hold the Senate and the House in 2018,” he said.

“But in terms of his political impact with voters, it will be a far more valuable for President Trump in his 2020 re-election bid with voters than it will be for Republicans in 2018.”

Read more from Emel Akan at The Epoch Times

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