U.S. GOP Pushes North American Trade Deal, Dems Remain Unsure

U.S. Republicans are pushing the congress to ratify a trilateral trade deal with neighboring Canada and Mexico, two of the United States' major trade partners. But Democrats could well thwart the new pact out of worries that it may increase President Donald Trump's re-election chances, said analysts.

The Democrats could well decline to pass the United States-Mexico-Canada Agreement (USMCA) simply to derail Trump's agenda in the run up to the 2020 elections, said Republican strategist and TV news personality Ford O'Connell in an interview with Xinhua.

The "markets are looking for certainty, that's why the USMCA is so important. Because it gives you a level of certainty," amid the U.S. trade tensions with China, O'Connell added.

The deal once enacted would be one of Trump administration's key economic achievements so far. It requires 75 percent of auto parts to be made in Canada, Mexico or the United States to avoid tariffs, and 40 to 45 percent of auto parts to be made by workers who earn at least 16 U.S. dollars per hour, among others.

The pact is a revamp of the 25-year-old North American Free Trade Agreement (NAFTA). It was signed by leaders from the three countries, and must be ratified by lawmakers to go into effect. Mexican lawmakers have already done so.

Read more Matthew Rusling at Xinhua

Do you like this post?

Showing 1 reaction

published this page in In The News 2019-09-13 12:03:36 -0400
Analysis & Political Strategy