Democrats in the US House of Representatives announced their support for the finalized version of the US-Mexico-Canada agreement, which will replace NAFTA as North America’s primary trade deal.
The support followed negotiations with US Trade Representative Robert Lighthizer that ended with stronger enforcement of labor and environmental provisions. News reports indicate Democrats gave their support after AFL-CIO union president Richard Trumka green-lighted the deal.
The new agreement includes provisions for digital trade and incentives, which could redirect certain automotive manufacturing activities from Mexico to the US or Canada. A ratification vote in the House of Representatives could come as early as next week, news reports said.
House Speaker Nancy Pelosi commented on the deal, "There is no question, of course, that this trade agreement is much better than NAFTA. But in terms of our work here, it is infinitely better than what was initially proposed by the administration."
Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI) also commented, "The steel industry welcomes today’s agreement between the administration and congressional Democrats that clears the way for a congressional vote on the USMCA. Implementation of the USMCA is critical to strengthening the steel industry’s competitiveness in the face of the continued challenges from global excess capacity and weakening demand. We urge Congress to quickly pass this new trade agreement before the end of this year."