The prospects for Congress ratifying a new trade deal with Mexico and Canada improved last month when House Speaker Nancy Pelosi said, "we're moving ahead" and expressed hope for "a continuing path to yes." No trade agreement is ever perfect. But the United States-Mexico-Canada Agreement (USMCA), the trade deal that could replace the North American Free Trade Agreement (NAFTA), is an improvement over NAFTA in several respects, especially when it comes to workers' rights and the environment.
The United States has agreed to lift its tariffs on industrial metals from Mexico and Canada, clearing a major obstacle to congressional passage of President Trump's new North American trade deal. The bargain calls for Mexico and Canada to adopt tough new monitoring and enforcement measures to prevent Chinese steel from being shipped to the U.S. via their territory.
The USMCA is the right deal for the U.S. because it puts innovation, and all those who help drive our technological and productivity advances, front and center. Key to the continued promotion of U.S. innovation is the establishment of critical intellectual property (IP) protections that safeguard and reward U.S. innovations. While Canada and Mexico remain some of our closest economic allies, too often relaxed IP protections in both countries have undermined U.S. incentives to innovate and compete fairly in those markets.
President Trump on Monday hailed the major revisions he was able to extract from Canada and Mexico to the 25-year-old North American trade agreement, as business executives, labor leaders, and lawmakers began poring over details. Speaking at a Rose Garden news conference, Trump called the pact that would replace the North American Free Trade Agreement “the most important trade deal we’ve ever made by far.”