The House of Representatives has voted in favor of a new trade deal for North America to replace NAFTA.
The new U.S.-Mexico-Canada-Agreement, or USMCA, was first signed by President Donald Trump and the leaders of Mexico and Canada a year ago. It passed on a bipartisan vote of 385 to 41 and includes a number of areas related to the automotive industry.
Under USMCA, the amount of North American content used in the manufacturing of cars and trucks across the continent has been raised from 62.5 per cent under NAFTA up to 75 per cent. Additionally, 40 per cent to 45 per cent of vehicle content needs to come from high-wage areas that are paying workers more than $16 per hour. Mexico has also agreed to pass new labor laws to provide workers with greater protection, including migrants and women, and to make it easier for employees to unionize.
More: Here’s How Trump’s New NAFTA Deal With Canada And Mexico, USMCA, Will Affect Cars
The U.S. Congressional Budget Office estimates that local car manufacturers will pay almost $3 billion more in tariffs over the next decade for failing to meet the new higher regional content rules.
“House passage of the USMCA with such huge bipartisan support is a major milestone and shows just how much President Trump is successfully changing U.S. trade policy so it works for the benefit of American workers, farmers, ranchers and businesses.”
–Amb. Robert Lighthizer pic.twitter.com/eDmLEvgVPR— USTR (@USTradeRep45) December 19, 2019
Elsewhere, USMCA will provide U.S. farmers with greater access to the Canadian dairy market while a number of changes have also been made on intellectual property and digital trade. For example, the terms of copyright has been extended up from 50 years beyond the life of the author to 70 years. Duties will be prohibited on things including music and ebooks and internet companies won’t be liable for content their users produce. The deal is subject to a review every six years.
This is the first multi-county trade deal to be considered by Congress since a trade deal was negotiated with a number of Central American countries back in 2005.
Official White House Photo by Shealah Craighead
USMCA addresses the priorities of U.S. workers & businesses, as well as the U.S. Congress. It achieves the Administration’s goals of modernizing & rebalancing North American trade to create freer markets & robust economic growth.
(Official White House Photo by Shealah Craighead) pic.twitter.com/6iyPCgpMcM— USTR (@USTradeRep45) December 19, 2019