U.S. Republican and Democratic lawmakers say there is broad support for revising the pact, which supporters say accounts for $1.2 trillion in annual trade across the continent and supports 12 million U.S. jobs and a third of U.S. agricultural exports. The Canadian Parliament and the Mexican Congress are expected to ratify the agreement without major complications. Iowa peasants have been one of the victims of Mexican retaliatory rights, which have profoundly reduced U.S. agricultural exports. Mexican tariffs and other similar Canadian taxes will also be removed. Given that the decision on tariffs on cars has been postponed and a significant obstacle from the USMCA has been defused, the president can focus on the impasse in dialogue with China. A week after a dispute erupted over U.S. complaints that China had broken its commitments, no date has been announced for the resumption of negotiations. In addition to the labor rules, Democrats said they had secured the agreement to abolish a 10-year exclusivity period for biologics, which they feared would lead to higher drug prices in the United States.
There was no immediate indication that the agreement had been published. Grassley said the positive step toward the USMCA transition was a step that will help strengthen the government`s credibility in trade negotiations with Beijing. Canada and Mexico were equally optimistic about the deal. Canadian Prime Minister Justin Trudeau called the announcement “good news for North America,” while the office of Mexican President Andrés Manuel López Obrador hailed the deal as “beneficial for both sides.” This approach is the result of voluntary export restrictions that the United States negotiated with Japan during an earlier period of trade tensions in the 1980s. Canadian Prime Minister Justin Trudeau spoke with Trump on Friday, their third such call in about a week. They discussed the customs issue as well as the USMCA agreement, according to a Canadian reading of the appeal. Citing national security considerations, Trump last year imposed tariffs on steel and aluminum in response to what the U.S. has called a flood of Chinese raw materials in global markets. The government blamed China`s overproduction on the depression in global steel and aluminum prices and withdrew many U.S. plants from operations. Nevertheless, Lighthizer called the meeting of unions, businesses and actors from across the political spectrum a “miracle” and said it was proof of the benefits of the deal. Lopez Obrador attributed Trump`s cooperation with him, while Freeland celebrated a victory for multilateralism.
The Trump administration has reached an agreement with Canada and Mexico to immediately remove tariffs on steel and aluminum, an important step toward approving the New North American Trade Pact. Senate Republicans, including Senator Charles E. Grassley of Iowa, the powerful chairman of the Finance Committee, had said they would not approve the deal until the tariffs were in place. The announcement of the customs deal came hours after the president of the European Union and Japan agreed to limit their car deliveries to the United States or face the threat of U.S. tariffs. The U.S. agreed to drop its 25 percent tariffs on Canadian and Mexican steel and 10 percent on their aluminum, while Canada and Mexico agreed that retaliatory tariffs on a wide range of items — from U.S. exports worth about $15 billion had been targeted — from metals to consumer products to food. Canada has stated that its tariffs will end within two days; Mexico also confirmed the same schedule. But tariffs on steel and aluminum should also force Canada and Mexico to agree to an overhaul of the North American Free Trade Agreement.