Welcome

Welcome

Wednesday, December 11, 2019

USMCA Deal Reached, Shifting Focus To Ratification

Months of negotiations between several parties involved finally reached the conclusion that some did not expect would happen – an agreement on altering provisions in the U.S.-Mexico-Canada Agreement (USMCA).

Signed by leaders from the U.S., Canada and Mexico in November 2018, the USMCA pact already won approval in Mexico. But Democrats in the U.S. House of Representatives complained the pact did not do enough to address labor issues that they said had to be adjusted before winning their support.

And perhaps more importantly, the deal has come together despite the global tensions on trade and areas like the WTO that have seen parties remain at odds.

U.S. House Democrats on Tuesday claimed victory in negotiating changes to a U.S.-Mexico-Canada trade agreement to ensure better protection for workers, the environment and remove key provisions that they said would have benefited big pharmaceutical companies.

But the year-long negotiations between a Democratic working group and U.S. Trade Representative Robert Lighthizer produced an agreement all parties could accept.

Expectations are the pact can still come up for approval in the House yet this year, with Senate approval also expected. However, the latter could spill into the early part of 2020.