Senate passes US-Canada-Mexico trade deal, a Trump priority

National

Deputy Prime Minister of Canada Chrystia Freeland, left, Mexico’s top trade negotiator Jesus Seade, center, and U.S. Trade Representative Robert Lighthizer, sign an update to the North American Free Trade Agreement, at the national palace in Mexico City, Tuesday, Dec. 10. 2019. Observing from behind are Mexico’s Treasury Secretary Arturo Herrera, left, Mexico’s President Andres Manuel Lopez Obrador, second left, Mexico’s Labor Secretary Maria Alcade, third left, and The President of the Mexican Senate Ricardo Monreal. (AP Photo/Marco Ugarte)

WASHINGTON (AP) — The Senate overwhelmingly approved a new North American trade agreement Thursday that rewrites the rules of trade with Canada and Mexico and gives President Donald Trump a major policy win before senators turn their full attention to his impeachment trial.

The vote was 89-10.

The measure goes to Trump for his signature. It would replace the 25-year-old North American Free Trade Agreement, known as NAFTA, which tore down most trade barriers and triggered a surge in trade. But Trump and other critics blamed that pact for encouraging U.S. companies to move their manufacturing plants south of the border to take advantage of low-wage Mexican laborers.

Passage of the trade bill came one day after Trump signed a new trade agreement with China, easing trade tensions between the economic powers.

“Quite a week of substantive accomplishments for the nation, for the president and for our international trade,” said Senate Majority Leader Mitch McConnell, R-Ky., shortly before the vote on the U.S.-Mexico-Canada deal.

Trump campaigned in 2016 on ripping up trade deals that he said added to the nation’s trade deficit and cost the country manufacturing jobs. He promised he would rewrite NAFTA if elected, a pact he described as “the worst trade deal in history.” He can now go to swing states such as Michigan, Pennsylvania and Wisconsin, and tell voters he followed through on that pledge.

Mexico has approved the revised trade deal. Canada is expected to do so in coming months, with Prime Minister Justin Trudeau’s government long insisting it would wait for U.S. approval before proceeding.

Sen. Pat Toomey, R-Pa., was a rare voice in speaking against the agreement. “It will mean higher prices for American consumers, who will have to pay more money for a car and therefore will have less money available for any of the other things they would like to consume,” Toomey said. “It will probably lead to an increase or acceleration in the shift to automation.”

The agreement aims to have more cars produced in the United States, where workers earn an average of at least $16 an hour. It also secured changes that require Mexico to change its laws to make it easier for workers to form independent unions, which should improve worker conditions and wages and reduce the incentive for U.S. companies to relocate their plants.

While the administration completed its negotiations with Canada and Mexico more than a year ago, Democrats in the House insisted on changes that they said made it more likely Mexico would follow through on its commitments. As part of those negotiations, the administration agreed to drop a provision that offered expensive biologic drugs — made from living cells — 10 years of protection from cheaper knockoff competition.

Republicans and the president have complained about how long it took to complete the negotiations, but the talks resulted in a rare mix of support for the trade deal.

The AFL-CIO, an association of trade unions, endorsed the measure, as did scores of business and farm groups. The biggest holdouts were environmental groups, which continue their opposition, saying the deal doesn’t address climate change. Indeed, they contend the agreement would contribute to rising temperatures.

“Despite the fact that it includes very good labor provisions, I am voting against USMCA because it does not address climate change, the greatest threat facing the planet,” said Senate Minority Leader Chuck Schumer, D-N.Y.

Edge Dairy Farmer Cooperative President Brody Stapel commented on the passing of the USMCA deal saying;

“With USMCA having now reached the finish line, we should celebrate this as a landmark victory not only for dairy farmers and processors but for our country as a whole. USMCA will not only keep us from losing ground in these critically important markets but will also bring opportunities to increase market share. Other agricultural commodities will see significant gains as well.”

U.S. Secretary of Agriculture Sonny Perdue commented on the passage of USMCA saying;

“The passage of USMCA is great news for America’s farmers and ranchers. With Congressional consideration now complete, our farmers and ranchers are eager to see the President sign this legislation and begin reaping the benefits of this critical agreement.”

Senator Ron Johnson of Wisconsin released this statement about the passing of the USMCA deal saying;

“Wisconsinites rely on trade agreements that will benefit businesses, ensure collaboration between our trading partners, and promote stable economic growth. The final version of the USMCA will help Wisconsin farmers and manufacturers continue to sell their goods throughout North America. I was pleased to vote for it, and I hope that this is the first of many trade agreements that will benefit Wisconsinites.”

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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