President Donald Trump joined Canadian Prime Minister Justin Trudeau, and outgoing Mexican President Enrique Peña Nieto to officially sign the new trade agreement between the respective nations.
As Trump has frequently referred to the previous 24-year-old North American Free Trade Agreement (NAFTA) as “the worst trade deal in history.”
After initial resistance from Canada, President Trump is now much closer to claiming success on the new deal. While he still needs to have it approved by Congress, Trump doesn’t “expect to have much of a problem” in that regard.
AS the three leaders gathered to sign the agreement, Trump made the statement:
“We’re gathered together this afternoon for a very historic occasion, the signing ceremony for a brand new trade deal: The United States-Mexico-Canada Agreement. So important. I’m honored to be here with president Enrique Peña Nieto, become a great friend of Mexico, and Prime Minister Justin Trudeau who has also become a great friend. This has been a battle, and battles sometimes make great friendships. So it’s really terrific.”
A White House news release shows that the USMCA would force “75% of auto content to be produced in North America.” It would also stipulate “that 40-45% of a vehicle consist of content manufactured by North American workers making at least $16 per hour.”
The second requirement acts to prevent auto manufacturers from favoring Mexico, which allows companies to pay workers lower wages, over the United States.
Mexico has also agreed to labor reforms, while Canada agreed to increase market access for U.S. “dairy products, eggs, and poultry.”