By: Dr: Alejandro Díaz Bautista, Economist (PhD)
The United States Senate approved a new North American trade agreement in a crushing vote that gave President Donald Trump a legislative victory, even when lawmakers begin to debate his political trial, and sending the stock market to new records offering certain certainty that we will have a North American trade agreement in 2020.
“The Plenary of the United States Senate approved the draft decree by which the Treaty between Mexico, the United States and Canada (USMCA) that replaces (NAFTA).
Certainty is being given to trade and investment in North America in 2020,” said Dr. Alejandro Diaz Bautista, an economist, as well as a research professor at the Northern Border College (El Colef).
The Treaty between Mexico, the United States and Canada will replace the North American Free Trade Agreement (NAFTA), which has been in operation since January 1994. The USMCA will have a moderate positive impact on economic growth, employment, wages, production and major industries of Mexico, the United States and Canada in the coming years.
The USMCA foresees conditions and offers certainty that economic agents require to take advantage of trade and investment opportunities in North America.
The USMCA will allow the economies of the three countries to promote inclusive economic growth that meets the needs of the majority and offers the welfare they require.
The United States-Mexico-Canada Agreement (USMCA), or by some called NAFTA 2.0, passed the Senate in a vote of 89-10 and will replace the North American Free Trade Agreement (NAFTA) that is in force for 26 years.
The trade agreement was approved by the House of Representatives last month, thanks to bipartisan support, in an overwhelming vote of 385-41.
The USMCA agreement will be sent to the White House where Trump’s signature awaits. After signing the trade agreement, it will need the approval of Canada to enter into force (the Mexican legislature already approved it last month).
The approval of the agreement by the House of Representatives and the Senate marks a victory for President Trump and will probably boost his candidacy for reelection in 2020.
The revised North American trade agreement, which was originally agreed by the United States, Mexico and Canada more than 14 months ago, was hailed by President Trump as the “best and most important trade agreement ever made by the United States.”
While all three nations signed the pact for the first time in 2018, congressional Democrats spent months working with the Trump administration to push for better labor and environmental protections in the agreement. That helped many Democrats come together to support the agreement.