President Trump and Mexican President Enrique Peña Nieto announced the conclusion of talks to create the U.S.-Mexican Trade Agreement. The U.S. Congress will be officially notified of the trade agreement no later than Friday, Aug. 31.
According to statements from the White House, the US-Mexico Trade Agreement will modernize and rebalance the trade relationship to reflect modern day realities. It will help American workers. It includes new “rules of origin” requirements to incentivize billions a year in vehicle and automobile parts production in the United States, supporting high-wage jobs. It includes new commitments to reduce trade-distorting policies for agricultural goods, enables food and agriculture to trade more fairly, and includes strong and effective intellectual property protections.
This deal is a major victory for the US Economy, however it is important that the final deal also include Canada.
“While we are pleased we have reached this important agreement with Mexico, Canada is a much more important trading partner for Missouri manufacturers,” said Ray McCarty, president and CEO of Associated Industries of Missouri. “In 2016, nearly 40% of our Missouri manufacturing exports were to Canada. Exports to Mexico came in second at 16%, China at 5%, and Japan at 4%. It is crucial that we applaud this victory as we continue to work hard on a deal with Canada,” he said. Click HERE for more data on Missouri manufacturing.
President and CEO of the National Association of Manufacturers released a statement on the deal:
“Today’s announcement is a step in the right direction. It is a positive signal that some form of NAFTA will survive. Manufacturers accept the administration’s position that the 25-year-old NAFTA agreement needs updates. Our hope—for the sake of our workers and a successful manufacturing industry here in America—is that the final agreement will include all three of the original signatories: the United States, Mexico and Canada. Because of the massive amount of movement of goods between the three countries and the integration of operations which make manufacturing in our country more competitive, it is imperative that a trilateral agreement be inked.
“Regarding the negotiations with Mexico, we are pleased that, at the NAM’s urging, today’s framework seems to include content requirements that are more workable than previous suggestions, investment protections for some industries (we would prefer that it applies to all manufacturers), stronger intellectual property protections than negotiated in previous agreements and a modernized approach to how we operate in a digital age. It also does not include language incorporating the disruptive uncertainty of ending the agreement every five years (sunset provision) and instead establishes a rigorous review process.
“Reaffirming our relationship with such a vital trading partner, neighbor and ally is crucial and sends a powerful message as America confronts China’s unfair trading practices.”