Trump expected to rescind NAFTA to force passage of USMCA

Trump expected to rescind NAFTA to force passage of USMCA

Trump expected to rescind NAFTA to force passage of USMCA

President Donald Trump said Saturday night that he will formally terminate the North American Free Trade Agreement 'shortly'.

Seeking to gain leverage with skeptical lawmakers to approve the revised trade pact, Trump said Congress "will have a choice" as it considers the agreement he signed.

Separately, the fate of the new, wide-ranging trade treaty among the United States, Canada and Mexico will soon be in the hands of lawmakers in all three nations. Millions of products arrive in US ports annually and are then transported by trucks. The move seems to be aimed at the new Democratic House, which will take over next year - and may not approve the USMCA. Kevin Kester, President of the National Cattlemen's Beef Association, says "U.S. beef producers are one step closer to "unrestricted, science-based trade continuing in North America". "I will only support this new deal if we can make it a better deal for Wisconsin farmers, manufacturers, businesses and workers".

U.S. Congress can suggest small changes to be made to the legislation, and many lawmakers have been waiting for an economic impact study from the U.S. International Trade Commission before making their final decision.

The U.S. Chamber of Commerce said past year that exiting NAFTA without a new deal could devastate American agriculture, cost hundreds of thousands of jobs and "be an economic, political and national-security disaster". The deal eliminates Canada's unfair Class 6 and Class 7 milk pricing schemes, opens additional access to USA dairy into Canada, and imposes new disciplines on Canada's supply management system. "And Donald, it's all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our two countries". NFU president Roger Johnson wants changes before Congress ratifies the agreement.

Two other Democratic Senators, Mark Warner of Virginia and Sherrod Brown of OH, fell short of a commitment to back the agreement on Sunday.

Nancy Pelosi, the House Democratic leader who is likely to be elected speaker, cast doubt on the likelihood that the deal could be passed without significant new assurances from Mexico that labour standards in the agreement will be strictly enforced.

"We don't yet have a specific agreement on that, but I will just tell you, as an involved participant, we expect those tariffs to go to zero", he said.

"What isn't in it yet are enough enforcement reassurances regarding workers" and the environment, she told a press conference.

"The United States, Mexico and Canada worked so well together in crafting this great document". Senator Marco Rubio of Florida tweeted on Friday that the deal as drafted would put Florida's seasonal vegetable growers "out of business".

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