Economy

North American leaders sign NAFTA replacement deal

North American leaders sign NAFTA replacement deal

Seeking to gain leverage with skeptical lawmakers to approve the revised trade pact, Trump said Congress "will have a choice" as it considers the agreement he signed.

In an attempt to blunt such maneuvering, Trump on Saturday said he would move to terminate the existing agreement soon - so Congress would be forced to choose between the new deal or no pact.

A number of Democrats in Congress, empowered by their new majority in the House of Representatives, say they don't like the new agreement in its current form, warning it will require more stringent enforcement mechanisms for new labour rules and protections for the environment in order to win their support.

NFU President Roger Johnson urged Congress to demand the administration make changes to the deal before ratifying it: "For decades, family farmers and ranchers have taken a backseat to corporate interests in worldwide trade negotiations". Grassley vowed to usher the deal through Congress, saying it'll benefit the US economy and bolster agriculture interests in the Midwest.

The elimination of both trade deals could expose Canada to more tariffs and import quotas and could send us back to square one with our largest trading partner.

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Larry Kudlow, Trump's senior economic adviser, said he and Trump hadn't spoken in detail about the president's thinking.

Trump's decision to set in motion a possible end to largely free trade in North America comes amid some skepticism from Democrats about the new trade deal.

What has Congress said about this?

"I think this new U.S. Mexico Canada trade agreement is great".

"While there's a lot to like in this new agreement, I'm disappointed that the Section 232 tariffs on Canada and Mexico still remain in place", Republican Senator Rob Portman said in a statement on Friday. I've spent time up there (Capitol Hill) talking about the USMCA and the importance of it.

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The MP also pointed out that the ongoing tariff tiff with the Trump administration has not been dealt with, an issue that affects the auto industry and manufacturing in the Windsor-Essex area.

Now that the leaders of the United States, Canada and Mexico have signed the agreement, it needs ratification from legislators in all three countries before taking effect.

Some Republicans, however, said such a threat from Trump could serve as a powerful incentive to get Congress to go along with the deal.

Although the three country leaders agreed to the new terms, lawmakers in each country still need to ratify the deal.

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