U.S. President Donald Trump has signed into law the new U.S.-Mexico-Canada Agreement (USMCA) to replace NAFTA, the North American Free Trade Agreement.
The USMCA encompasses a series of changes over NAFTA such as stronger protections for workers and the digital economy as well as new rules that will encourage auto manufacturing across North America, The New York Times reports.
“Today we are finally ending the NAFTA nightmare and signing into law the brand-new U.S.-Mexico-Canada Agreement,” Trump said while signing the agreement at the White House. “For the first time in American history, we have replaced a disastrous trade deal that rewarded outsourcing with a truly fair and reciprocal trade deal that will keep jobs, wealth and growth right here in America.”
Related: U.S. Passes Trump’s USMCA Trade Deal To Replace NAFTA With Big Impacts On Auto Industry
The agreement still needs to be ratified by Canadian Prime Minister Justin Trudeau before USMCA is finalized.
For years, Washington kept letting American workers down. Both Republican and Democrat politicians promised voters that they’d scrap NAFTA for a stronger deal—and did nothing.
But President Trump is nothing like conventional Washington.
1600 Daily: https://t.co/A68ueVC88u pic.twitter.com/byfyAF2RJg
— The White House 45 Archived (@WhiteHouse45) January 30, 2020
Under the agreement, the amount of North American content used in the manufacturing of cars and trucks in the continent has jumped from 62.5 per cent under NAFTA up to 75 per cent. In addition, 40 per cent to 45 per cent of vehicle content must come from high-wage areas where workers and paid more than $16 per hour. The Trump administration believes these changes could generate 76,000 new auto jobs and result in $34 billion in new automotive manufacturing investments.
The signing ceremony was attended by GM chief executive Mary Barra who praised the deal saying it is “vital to the success of the North American auto industry.”
“The certainty that comes with having this strong and modern agreement in place is welcome news and we look forward to working with all three governments on its implementation,” GM added in a statement.