New proposed U.S.-Mexico-Canada trade deal in the works

05 Jul 2019

tradeManufacturers in North-eastern Wisconsin have asked that U.S. lawmakers approve a U.S.-Mexico-Canada trade agreement, which was approved by the Mexican Senate last month.

StarTribune reports that this new agreement would be implemented instead of the North American Free Trade Agreement. So far, the reason it has not yet been approved is because some lawmakers are unsure about how to enforce it.

Business owners have spoken in favour of the treaty, when sharing their opinion at a forum on the USMCA.

Paul Rauscher, who owns the equipment manufacturing company EMT International, Inc., called it a good thing, adding: “I think the idea of using that as a process now to other areas of the world is a good thing."

He revealed that his company’s biggest export markets are Canada and Mexico.

"I think the United States has been accepting some unfair trade practices worldwide that really do hurt us manufacturers," Rauscher said, before going on to say that he was in favour of stronger, fair and free trade with minimal tariffs.

The forum was attended by 22 manufacturers from the Green bay area, 55 development organisations and educational institutions. U.S. Department of Commerce General Counsel Peter Davidson addressed questions related to the agreement, saying that it would open abroad markets to mid- and small-sized businesses and ensure regulations are clarified.

Davidson added: "I'd also say there are transparency and requirements to publish rules and regulations, so that small and medium-sized exporters will know exactly how much it's going to cost to export to Mexico and Canada before they make the shipments there.”

Although the Trump Administration has backed the trade deal, it has yet to be approved by the Democrat-controlled U.S. House of Representatives.