Saturday, December 9, 2023

U.S. signs new trade deal with Mexico and Canada

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U.S. signs new trade deal with Mexico and Canada
By Barbara Olejnik
Poultry Times staff
GAINESVILLE, Ga. — President Donald Trump, joined by leaders from Mexico and Canada, has signed the U.S.-Mexico-Canada Agreement, a newly negotiated trade deal between the three nations.
Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau joined Trump for the signing held during the G-20 summit in Buenos Aires, Argentina.
The new agreement — the U.S.-Mexico-Canada Trade Agreement (USMCA) — replaces the 24-year-old North American Free Trade Agreement.
The agreement must still be ratified by each country’s legislative body for it to officially go into effect
For the U.S., this means the Congress will have to vote to approve the agreement. The measure will be voted on by what is known as a ‘fast track’ passage, which means an up or down vote with no amendments. If passed, the agreement would likely go into effect about Jan. 1, 2020.
The agreement fulfills a campaign promise made by President Trump who pledged to either renegotiate and replace NAFTA or to terminate it.
Speaking at the signing ceremony, Trump said, “This has been a battle and battles sometimes make great friendships so it’s really terrific. With our signatures today we will formally declare the intention of our three countries to replace NAFTA with the USMCA.
“We have worked hard on this agreement,” Trump said. “It’s been long and hard and we have taken a lot of barbs and a little abuse and we got there, it’s great for all of our countries.”
Included in the new agreement is a requirement that cars and trucks must have 75 percent of their parts made in North America, an increase from the NAFTA requirement of 62.5 percent.
In addition, a minimum amount of 40-45 percent of a car must be produced by workers making $16 an hour.
Under the deal, Canada agrees to open its dairy market and U.S. exporters of chicken, eggs, turkeys and U.S. wheat gain more access to the Canadian market.
U.S. tariffs on Canadian steel and aluminum will remain in effect for the present time.
The new trade agreement allows any country to withdraw from the USMCA by providing at least six months written notice. Also, under a ‘sunset’ provision, the agreement terminates in 16 years unless extended after a review.

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