According to Bloomberg – several Democrat lawmakers demand changes be made to the USMCA before they will support the new agreement to replace NAFTA. These changes will likely need to be negotiated if approval can occur as Democrats have new clout after seizing control of the House of Representatives following the midterm elections earlier this month.
The new USMCA agreement was reached at the end of September and one part of the agreement strengthens independent unions but some Democrats say the method to enforce the rules is inadequate.
Other terms of the agreement require at least 40% of car production to come from factors paying a way of $16 per hour or higher while also allowing the US greater access to Canada’s dairy market.
Bloomberg cites that Democrats may not want to give Trump a deal leading into the 2020 elections while Trump could withdraw the US from NAFTA if the Democrats do not work with him. Check back for more details as they become available.
Feel free to contact David Hsu to see how the new USMCA may impact your business: (832) 896-6288 or by email at firstname.lastname@example.org.