USMCA Passes Senate, Awaits President Trump’s Signature
Wednesday, January 22, 2020
The U.S.-Mexico-Canada Agreement (USMCA) passed the U.S. Senate and the deal is now awaiting President Donald J. Trump’s signature.
The California Chamber of Commerce supports the USMCA based on an assessment that the agreement serves the employment, trading and environmental interests of California, the United States, Mexico, and Canada, and is beneficial to the business community and the California and national economies.
“Irvine is the economic center and economic powerhouse of Orange County. Our companies—whether global organizations or local businesses—have a significant impact on the region’s trade economy. To ensure we continue to succeed economically, the passage of the USMCA by the president is vitally important to Irvine,” said Bryan Starr, president and CEO, Greater Irvine Chamber.
“Mexico and Canada are two of California’s strongest trading partners and trade with Mexico and Canada supports nearly 14 million U.S. jobs,” Allan Zaremberg, CalChamber president and CEO said. “The USMCA is a necessary modernization to NAFTA that recognizes the impacts of technology on the three countries’ economies.”
The objectives of the USMCA are to eliminate barriers to trade, promote conditions of fair competition, increase investment opportunities, provide adequate protection of intellectual property rights, establish effective procedures for implementing and applying the agreements and resolving disputes, and to further trilateral, regional, and multilateral cooperation.
Due to California’s position as a global leader in international trade, the priorities of the USMCA are important to the CalChamber’s members and the overall economic health of the state.
The CalChamber actively supported the creation of the North American Free Trade Agreement among the United States, Canada, and Mexico, comprising almost 490 million people with combined annual trade with the United States being around $1.228 trillion in 2018. In 2018, goods exports exceeded $563.729 billion while goods imports totaled nearly $665 billion.
President Trump announced his intent to renegotiate NAFTA in May 2017. The negotiations started shortly thereafter, going through many rounds. In August 2018, the U.S. and Mexico reached a preliminary agreement, while the U.S. continued separate negotiations with Canada. In October, Canada and the U.S. came to an agreement right before a self-imposed deadline, reassuring the deal would remain trilateral. The pact was rebranded the USMCA.
Category: Chamber News, International Trade, Economic Development