US Congress and White House agree ‘best deal ever’ to replace Nafta
US President Donald Trump and Nancy Pelosi have agreed on a replacement for the North American Free Trade Agreement (Nafta) with Canada and Mexico.
The Democratic Speaker of the House of Representatives gave her support for the USMCA this afternoon.
Read more: US and Canada quash fears with last-minute deal to revamp Nafta
In exchange for their support for the bill, the Democrats secured stronger labour standards and environmental protections and removed advantages for pharmaceutical companies.
Both Trump and Pelosi claimed the deal as a victory.
Pelosi described the modified deal as “infinitely better” than Trump’s original deal. She said “it’s a victory for America’s workers. It’s one we take great pride in advancing”.
President Trump also claimed the deal as a victory, tweeting: “America’s great USMCA Trade Bill is looking good. It will be the best and most important trade deal ever made by the USA. Good for everybody — Farmers, Manufacturers, Energy, Unions — tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, Nafta!”
Robert Lighthizer, the US trade representative, will meet Chrystia Freeland, Canada’s deputy prime minister, and Mexico’s negotiator Jesus Seade today to sign off the proposed amendments.
Politicians will then seek to pass the trade deal in the US Congress and Senate. The deal is expected to pass given the support from both Republicans and Democrats.
The US business community welcomed the deal, which will retain open trade across North America.
USMCA will expand free commerce in areas such as digital trade but has imposed limitations on areas such as car manufacturing.
Jay Timmons, chief executive of the National Association of Manufacturers, said: “A ratified USMCA will deliver increased certainty for manufacturers — especially for the 2m manufacturing workers whose jobs depend on North American trade.”
Read more: Trump impeachment: House Democrats charge President with ‘high crimes and misdemeanours’
One hour after announcing her support for the deal, Pelosi joined other leading Democrats to set out two articles of impeachment against Trump.
The busy period will continue as politicians in Washington will seek to pass the trade deal, approve the impeachment and articles and pass spending legislation before Christmas.