US House passes new North American trade deal replacing NAFTA

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WASHINGTON (REUTERS) - The US House of Representatives overwhelmingly approved a new North American trade deal on Thursday (Dec 19) that includes tougher labour and automotive content rules but leaves US$1.2 trillion (S$1.63 trillion) in annual US-Mexico-Canada trade flows largely unchanged.. Read more at straitstimes.com.

WASHINGTON - The US House of Representatives overwhelmingly approved a new North American trade deal on Thursday that includes tougher labour and automotive content rules but leaves US$1.2 trillion in annual US-Mexico-Canada trade flows largely unchanged.

The House vote sends the measure to the Senate, but it is unclear when the Republican-controlled chamber will take it up. House Speaker Nancy Pelosi gave USMCA a green light last week after striking a deal with the Trump administration, Canada and Mexico to strengthen labour enforcement provisions and eliminate some drug patent protections.

The changes negotiated by Democrats, which include tighter environmental rules, will also set up a mechanism to quickly investigate labour rights abuses at Mexican factories. They have earned the support of several US labour unions that have opposed NAFTA for decades. Representative Ron Kind, a pro-trade Democrat from Wisconsin, one of the top dairy-producing states, praised new access to Canada's closed dairy market under USMCA.

 

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