USMCA Agreement Reached

Today, the Trump Administration and the U.S. House of Representatives revealed plans to move forward with the United States-Mexico-Canada Agreement (USMCA), which will replace the recently defunct North American Free Trade Agreement (NAFTA).

USMCA makes a few key changes to NAFTA, which are designed to favor organized labor, regular (non-gig) workers and enhance digital trade and intellectual property regulations, among other provisions. Negotiations between House Democrats and the White House over a variety of concerns presented in the USMCA, including environmental and labor standards, continued for over a year.

In order for the agreement to be approved, the Trump Administration must ratify and submit legislation to Congress in the coming days, which will open a 90-day window for Congressional approval of the USMCA.

Mexico has already ratified last year’s agreement but will need to sign the new version.

The U.S. and Canada also need to ratify the new agreement; however, U.S. Trade Representative (USTR) Robert Lighthizer and Canadian officials are expected to sign the revised version together during an upcoming trip to Mexico.

Shapiro will continue to monitor the situation and provide updates as they become available.

*UPDATE (12/10/19, 4 PM): Senate Majority Leader Mitch McConnell just announced that the Senate will not vote on the USMCA trade deal until next year (2020), as it instead shifts its focus on avoiding a government shutdown and gearing up for impeachment proceedings.

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