The House Democrats and White House have jointly agreed and have reached a deal to revise the North American Free-trade pact. It is a feat accomplished for President Trump.
Rep. Richard E. Neal, who is in charge of the House trade policies, has announced that the agreement has been reached, which is expected to benefit the North American economy.
A deal was reached last year by the Trump administration along with Canada and Mexico but Democrat leaders did not yield to it.
“The USMCA Trade Bill looks good,” wrote President Trump on Twitter. The United States-Mexico-Canada Agreement was earlier known as the North American Free Trade Agreement.
President Trump banks on the USMCA to help him earn back his reputation in the agricultural and manufacturing sector. They have been hurt most from the trade war with China as their exports to China have dwindled.
Though the Republican lawmakers have agreed with President Trump for the revised deal earlier, it was not passed by Pelosi and other members.
The Democrats ask for enhanced terms to protect the rights of the union and workers in Mexico. Labor groups blame the Trump administration and NAFTA for the movement of jobs from the U.S. to Mexico.
Earlier, Trump had promised to bring in more concessions through trade policies. But he has not been able to bring in much change, except for a pact with countries like South Korea and Japan.
Robert Lighthizer, the chief trade negotiator for the U.S., has been working with the House Democrats to get the deal signed. He has been negotiating with Mexico’s undersecretary Seade recently on this.
Mexico has agreed to certain demands for enforcing labor standards, though all terms have not been agreed upon. Earlier, President Trump had withdrawn from NAFTA and Mexico does not want this to happen again. They need support from the U.S. trade to revive their sluggish economy.