House Democrats Reach Agreement With Trump Administration on USMCA Trade Deal

By Staff Reporter
Posted on 12/10/19 | News Source: WSJ


Washington, DC — House Democrats have struck an agreement to support the new U.S. trade deal with Mexico and Canada, Rep. Henry Cuellar said Tuesday, marking a victory for President Trump who ran for office in 2016 on a pledge to renegotiate or terminate the North American Free Trade Agreement.

The House is planning to vote on the agreement next week, said Rep. Cuellar, a Democrat who represents a Texas border district and has been leading the push for ratifying the U.S.-Mexico-Canada Agreement.

The new USMCA will replace Nafta when ratified and contains provisions aimed at creating more manufacturing jobs, for example, by increasing the proportion of vehicles that must originate in North America for the cars and trucks to receive duty-free treatment.

It also includes updated labor rules and beefed-up enforcement provisions to hold firms in Mexico to account on labor, according to people familiar with the emerging deal.

USMCA had long been supported by Republicans and leading business trade groups but opposed by Democrats over concerns including the legal language enforcing new labor rules. The Democratic approval Monday comes as a rare bipartisan moment of cooperation on economic policy at a time when Capitol Hill is divided over the impeachment inquiry.

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