Trump to kill old NAFTA to push Congress to approve USMCA

Wednesday, 05 Dec, 2018

The original NAFTA deal was signed in 1992 by former President George H.W. Bush.

"It's not a major departure from the previous agreement", Crawford said.

The outcome is uncertain because of labor, agricultural, manufacturing and environmental concerns raised by a number of lawmakers.

"It is Congress's constitutional duty to regulate worldwide trade, including implementation of trade agreements that benefit United States citizens. The deal eliminates Canada's unfair Class 6 and Class 7 milk pricing schemes, opens additional access to US dairy into Canada, and imposes new disciplines on Canada's supply management system", Perdue said. If allowed to take effect without changes, USMCA will continue this trend.

"I think they're betting on Congress not letting it all go to hell", she said.

Two other Democratic Senators, Mark Warner of Virginia and Sherrod Brown of OH, fell short of a commitment to back the agreement on Sunday. You got out, you negotiate your deals. "It's been a disaster for the United States", Trump said as he left the G-20 summit.

Some lawmakers could threaten to block the deal as a way to receive side agreements addressing home state priorities, a tack that has been used before with success. Trump said he was going to cancel NAFTA in its entirety in the near future, which would give Congress six months to approve USMCA or not.

"This is something we have been pushing for and we've been very involved through the whole process", said Bob Costello, ATA chief economist, in a December 1 interview on Transport Topics Radio on SiriusXM Radio.

"NAFTA was in need of an update, particularly in areas like digital commerce that didn't exist a quarter-century ago", said NRF President and CEO Matthew Shay in a press release.

Many Democrats don't like the new USMCA deal, but they weren't happy with the NAFTA deal, either.

The deal signed Friday already included some tweaks from the one struck two months earlier, changes apparently aimed at wooing congressional support. Charles Grassley, R-Iowa, said Monday on the radio show "Adams on Agriculture". Such things have rarely stopped this President before, however.

More than any other issue, Trump's trade policies have divided him from the traditionally free-trade Republican Party. Much, much better than NAFTA. Mr Trump seems to have opted for diplomacy at the end of a political barrel, telling reporters on Saturday that Democrats "will have a choice" of whether to approve the deal as written or risk the consequences.