On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. They also called on the Trump administration to continue to support NAFTA until the new trade agreement is ratified. [70] On March 4, House Ways and Means President Richard Neal predicted a “very hard” path through Congress for the agreement. [71] Starting March 7, senior White House officials met with members of the Ways and Means House of Representatives, as well as moderate cackles from both parties, such as the Solver Caucus, the Tuesday Group and the Blue Dog Coalition, to seek ratification support. The Trump administration also withdrew from the threat to withdraw from NAFTA as negotiations with Congress continued. [72] The United States, Mexico and Canada have reached an agreement to modernize NAFTA, which is 25 years old, into a high-level agreement of the 21st century. The new agreement between the United States and Mexico-Canada (USMCA) will support mutually beneficial trade, which will lead to freer markets, fairer trade and robust economic growth in North America. For the first time, the new agreement also stipulates that 40-45% of parts of a non-tariff vehicle must come from a so-called high-wage plant. These plants must pay at least $16 per hour in average wages for production workers. That`s about three times the average wage at a Mexican plant right now, and government officials hope that this provision will force automakers to buy more supplies from Canada or the United States, or raise wages in Mexico. According to the Bipartisan Tax Foundation, China`s already imposed tariffs have reduced GDP growth by about a quarter of a percentage point, cut wages and cost nearly 200,000 jobs. The threats of tariffs avoided when the China trade agreement was concluded would have doubled the blow on GDP. On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1.

[89] On April 3, 2020, Mexico announced its readiness to implement the agreement and joined Canada,[15] although it requested that its auto industry have additional time to comply with the agreement. [90] Growing objections within Member States to U.S. trade policy and various aspects of the USMCA have had an impact on the signing and ratification process. Mexico said it would not sign the USMCA if tariffs on steel and aluminum were maintained. [62] Based on the results of the November 6, 2018 U.S. election, it has been speculated that the greater power of Democrats in the House of Representatives could jeopardize the passage of the USMCA agreement. [63] [64] Bill Pascrell, a senior Democrat, argued for changes to the USMCA to pass Congress. [65] Republicans have opposed the USMCA provisions that impose labour rights on LGBTQ and pregnant workers.

[66] Forty Republicans in Congress have asked Mr. Trump not to sign an agreement that includes “the unprecedented integration of sexual orientation and the language of gender identity.” As a result, Trump ultimately signed a revised version that required each nation only to “policies it deems appropriate to protect workers from discrimination in the workplace” and said the United States would not be required to introduce additional non-discrimination laws. [67] The Canadian government expressed concern about the changes that have occurred under the USMCA agreement. [68] The rules of origin of motor vehicles (ROOs) require that some of the value of an automobile originate from the region governed by the region. In NAFTA, the required proportion was 62.5%. The USMCA increases this requirement by 12.5 percentage points to 75 per cent of automotive value. The Trump administration`s initial proposal was to increase to 85 percent and an additional provision that 50 percent of auto content is made by U.S. automakers. [33] Although the text of the agreement did not contain the most sophisticated version of the agreement,