House Speaker Nancy Pelosi of Calif., speaks at a news conference on Capitol Hill in Washington, Tuesday, Dec. 10, 2019, on Capitol Hill in Washington. (AP Photo/Susan Walsh)

House Speaker Nancy Pelosi of Calif., speaks at a news conference on Capitol Hill in Washington, Tuesday, Dec. 10, 2019, on Capitol Hill in Washington. (AP Photo/Susan Walsh)

Democrats announce agreement on North American trade pact

The new deal will replaced NAFTA

House Speaker Nancy Pelosi on Tuesday announced agreement on a modified North American trade pact, handing President Donald Trump a major Capitol Hill win on the same day that Democrats announced their impeachment charges against him.

The California Democrat said the revamped U.S.-Mexico-Canada Agreement is a significant improvement over the original North American Free Trade Agreement, crediting Democratic negotiators for winning stronger provisions on enforcing the agreement.

“There is no question of course that this trade agreement is much better than NAFTA,” Pelosi said in announcing the agreement, saying the pact is “infinitely better than what was initially proposed by the administration.”

Trump said the revamped trade pact will “be great” for the United States.

“It will be the best and most important trade deal ever made by the USA. Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!,” the president said in a tweet.

In Mexico City, Mexican Foreign Relations Secretary Marcelo Ebrard said Monday night that there would be a meeting of the three countries’ negotiating teams Tuesday “to announce the advances achieved” on the trade agreement. U.S. Trade Representative Robert Lighthizer is slated to appear.

The announcement came on the same morning that Democrats outlined impeachment charges against Trump. The pact is Trump’s top Capitol Hill priority along with funding for his long-sought border fence.

Vice-President Mike Pence, a foot soldier in the administration’s campaign to sell the accord, said Pelosi had “acquiesced” in slating the pact for a vote this year.

“The USMCA will create even more jobs for the hardworking families who are the backbone of our economy – the farmers, ranchers, manufacturers, and small business owners,” Pence said in a statement.

Pelosi is the key congressional force behind the accord, which updates the 25-year-old NAFTA accord that many Democrats — especially from manufacturing areas hit hard by trade-related job losses — have long lambasted.

Pelosi has negotiated with the administration extensively to win stronger enforcement provisions. Her efforts have appeared to build support among Democrats.

“There are those who I read about in one place or another that say, ‘why would you give President Trump a victory?’” Pelosi said Monday night at a Wall Street Journal event for corporate executives. “Well, why wouldn’t we? This is the right thing to do for our trade situation, for our workers.”

NAFTA eliminated most tariffs and other trade barriers involving the United States, Mexico and Canada. Critics, including Trump, labour unions and many Democratic lawmakers, branded the pact a job killer for the United States because it encouraged factories to move south of the border, capitalize on low-wage Mexican workers and ship products back to the U.S. duty free.

Weeks of back-and-forth, closely monitored by Democratic labour allies such as the AFL-CIO, have brought the two sides together. Pelosi is a longtime free trade advocate and supported the original NAFTA in 1994. Trump has accused Pelosi of being incapable of passing the agreement because she is too wrapped up in impeachment.

READ MORE: Feds face calls to protect aluminum industry as new NAFTA deal appears close

The original NAFTA badly divided Democrats but the new pact is more protectionist and labour-friendly, and Pelosi is confident it won’t divide the party, though some liberal activists took to social media to carp at the agreement.

“There is no denying that the trade rules in America will now be fairer because of our hard work and perseverance. Working people have created a new standard for future trade negotiations,”said AFL-CIO President Richard Trumka. “President Trump may have opened this deal. But working people closed it.”

Business groups like the U.S. Chamber of Commerce also chimed in to support the long-delayed agreement.

“We are optimistic this development will open the door to final approval of USMCA on a bipartisan basis by the end of the year, which will especially benefit American farmers, manufacturers, and small businesses,” Thomas Donohue, CEO of the U.S. Chamber of Commerce, said in a statement.

“This agreement has been the result of painstaking bipartisan negotiations over the past year, and would not have been possible if not for the willingness of President Trump to work patiently with Democrats to get something done that he knew was in the best interests of American workers, farmers and manufacturers,” said Sen. Rob Portman, R-Ohio, a former U.S. trade representative.

Republicans leaders and lawmakers have agitated for months for the accord but Pelosi has painstakingly worked to bring labour on board. Democrats see the pact as significantly better than NAFTA and Trumka’s endorsement is likely to add to a strong vote by Democrats that have proven skeptical of trade agreements.

“I think the vote’s going to be pretty good,” said No. 2 House Democrat Steny Hoyer, D-Md., a veteran party whip. “There’s a general agreement — not total agreement, it’s not unanimity — that USMCA is better. It’s an improvement. And to the extent that Trumka and labour comes out and says that this is an improvement, I think that that will be unifying.”

The pact contains provisions designed to nudge manufacturing back to the United States. For example, it requires that 40% to 45% of cars eventually be made in countries that pay autoworkers at least $16 an hour — that is, in the United States and Canada and not in Mexico.

The trade pact picked up some momentum after Mexico in April passed a labour-law overhaul required by USMCA. The reforms are meant to make it easier for Mexican workers to form independent unions and bargain for better pay and working conditions, narrowing the gap with the United States.

The end-stage talks focused on provisions to improve the enforcement of the accord.

Andrew Taylor, The Associated Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

This tractor was stolen from Providence Farm near Duncan between May 6 and 7, 2021. (Submitted)
Tractor stolen from Cowichan’s Providence Farm

John Deere X300 model was swiped between May 6 and 7

The organizers of the annual 39 days of July festival hope to return to live shows in Charles Hoey Park this year, like in this photo taken in 2019, but audiences at the show may be limited to 50 people due to health protocols. (File photo)
39 Days of July hoping for outdoor events in Duncan this summer

Annual music festival will run from June 25 to Aug. 2 this year

Cowichan Valley WildSafeBC coordinator Amanda Crowston teaches a Grade 5/6 class at Ecole Cobble Hill last fall. (Submitted)
The bears are back in town and so is WildSafeBC

The bears are back in town so keep an eye out, reminds… Continue reading

The Regional District of Nanaimo has its sights set on busing to the Cowichan Valley in time for March 2022. (News Bulletin file)
Bus link between Nanaimo and the Cowichan Valley expected by next March

Unallocated transit hours already in Regional District of Nanaimo budget

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

RCMP. (Black Press File)
Major Crimes called in after two bodies discovered on remote road near Penticton

A manhunt involving a police helicopter took place on May 10

Vancouver court on Tuesday, March 23, 2021. THE CANADIAN PRESS/Darryl Dyck
Defence lawyers call foul as Crown counsel granted access to COVID-19 vaccines

Defence attorneys are pushing the province to extend inoculation access to workers in courtrooms across B.C.

A Nanaimo RCMP officer is recovering after his patrol car was hit by another vehicle at an intersection on Monday, May 10. (Photo courtesy Julia Rose)
RCMP vehicle broad-sided in Nanaimo intersection crash

Police officer recovering at home following collision Monday

A partnership is looking to identify skeletal remains that were discovered by recreational divers in the Gorge Waterway this February. (Black Press Media File Photo)
Divers find partial human skull in Victoria’s Gorge Waterway

B.C. Coroner Service determines remains likely historical, not ancestral

The RCMP logo is seen outside Royal Canadian Mounted Police “E” Division Headquarters, in Surrey, B.C., on Friday April 13, 2018. Indigenous leaders are calling for an investigation into the conduct of Mounties on Vancouver Island after two police shootings of members of a small First Nations community in three months. THE CANADIAN PRESS/Darryl Dyck
Indigenous leaders call for clarity, investigation into RCMP after B.C. shooting

The RCMP declined to comment on the requests by Indigenous leaders

Colleen Price, Vancouver Island University’s bachelor of science in nursing program chairperson, says she is impressed with how students have persevered through the COVID-19 pandemic. (Chris Bush/News Bulletin)
Next generation of B.C. nurses already showing resilience

University program head says learning had to be adjusted amidst pandemic

Two-year-old Kashius Weme rides at the Steve Smith Memorial Bike Park in Nanaimo on Tuesday, May 11. The youngster’s precocious bike-riding ability is already attracting cycle sponsors. (Chris Bush/News Bulletin)
2-year-old B.C. bike rider already attracting cycle sponsors

Nanaimo’s Kashius Weme has a knack for extreme cycle sports

Keith MacIntyre - BC Libertarian
Penticton’s Keith MacIntyre new leader of the B.C. Libertarian Party

The Penticton businessman was voted in by members of the party on May 8

Most Read