A final agreement has been reached on a new trade agreement between the United States, Canada, and Mexico. The agreement will still require ratification from each of the three countries. A new report out Monday indicated that the White House is close to reaching a deal with Democrats to get the agreement ratified by Congress.
According to Fox Business:
Trade negotiators from the U.S., Mexico and Canada have reached an agreement that makes changes to the enforcement of the United States-Mexico-Canada Agreement, multiple sources have told FOX Business.
A final deal could come together in the next 24 hours, according to sources, paving the way for ratification by all three countries. U.S. stocks were little changed on the developments.
House Democrats and Speaker Nancy Pelosi expressed concerns over enforcement and the need to make sure Mexico pays workers in auto plants an average of $16 an hour. Mexico has rejected such an enforcement mechanism but has said it’s willing to allow a “neutral” third party to accompany U.S. and Mexican regulators. There is also a process in case Mexico becomes noncompliant.
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The USMCA, which overhauls the Clinton-era North American Free Trade Agreement, commonly known as NAFTA, requires 75 percent of automobile components be manufactured in the United States, Canada and Mexico in order to avoid tariffs, and that 40 to 45 percent of automobile parts be made by workers who earn at least $16 an hour by 2023.
President Trump signed the deal in November of 2018 but it appears that a version has finally been agreed upon that will allow Nancy Pelosi to put it to a vote in the House.
