December 10th, 2018 15:02 EST
Trump Signs a Stronger Trade Agreement with Mexico and Canada
REBALANCING OUR TRADE RELATIONSHIP: President Donald J. Trump kept his promise to deliver a modern and rebalanced trade deal to replace NAFTA.
- Today in Argentina, the United States is joining Canada and Mexico to sign a new trade agreement that will better serve the interests of American workers and businesses.
- This follows the President`s announcement in October that a deal had been reached.
- The new United States-Mexico-Canada Agreement (USMCA) will replace the outdated, failed North American Free Trade Agreement (NAFTA).
- With the signing of this agreement, President Trump has delivered on his promise to renegotiate NAFTA and protect American farmers, ranchers, businesses, and workers.
SECURING A STRONGER DEAL FOR AMERICAN INDUSTRIES AND WORKERS: USMCA is a stronger deal for American farmers, ranchers, businesses, and workers.
- USMCA will help incentivize billions of dollars in additional vehicle and auto parts production in the United States.
- The agreement includes updated rules of origin that require 75 percent of auto content to be produced in North America.
- American autoworkers will benefit from rules that incentivize the use of high-wage manufacturing labor in the auto sector.
- This includes a requirement that 40-45% of a vehicle consist of content manufactured by North American workers making at least $16 per hour.
- USMCA`s labor and environment chapters are fully enforceable and represent the strongest labor and environmental provisions of any trade agreement ever negotiated.
- Mexico agreed to historic labor reforms to provide for genuine collective bargaining.
- The agreement prohibits the importation of goods produced by forced labor.
- The agreement includes provisions that allow agriculture products to be traded more fairly.
- Canada will end its "Class 6" and "Class 7" programs that allow low-priced dairy products to undersell American dairy producers.
- Canada will increase market access for United States dairy products, eggs, and poultry.
REFORMING TRADE FOR THE 21ST CENTURY: USMCA modernizes our trade relationship with Canada and Mexico to reflect the realities of the 21st century.
- The new agreement includes a modernized chapter that provides stronger and more comprehensive intellectual property protections than any prior United States trade agreement.
- These protections are vital to promoting innovation and economic growth.
- USMCA includes robust copyright protection, 10 years of data protection for biologic drugs, and new protections against the theft of trade secrets.
- USMCA includes the strongest digital trade and financial services provisions of any United States trade agreement.
- New rules ensure that data can be transferred cross-border and that limits on where data can be stored are minimized.
- USMCA will cut red tape at the border, streamline trade, and reduce regulatory uncertainty.
- The agreement includes a currency chapter that will help reinforce transparency and stability.
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