Later today, President Trump will sign the house and senate approved USMCA bill. The replacement for the 25-year old trade agreement NAFTA won’t immediately take effect as Canada remains the only country that has not yet approved the USMCA (expected to do so in a few weeks). Give me a call/text if you have questions how the USMCA will impact you or your business – 832-896-6288 or send me an email at email@example.com, firstname.lastname@example.org.
As you are aware, the Senate passed the USMCA legislation last week. According to Reuters, President Trump will sign the USMCA trade agreement next Wednesday at the White House. The Reuters article cites unnamed sources regarding invitations for the upcoming ceremony.
This new US Mexico Canada Agreement (USMCA) wills replace NAFTA and still requires formal approval from Canada.
After passing through the House, the Senate just passed the USMCA trade deal by 89-10 vote. The new trade deal will now head to Trump’s desk for his signature.
Contact experienced trade attorney David Hsu if you have any questions on how the new trade deal will impact your business, phone/text 832-896-6288 or email email@example.com, firstname.lastname@example.org.
As you are aware, the U.S. House of Representatives passed an updated version of the USMCA earlier this week. The passage by the House includes revisions to an agreement initially agreed to by the US, Mexico and Canada in September 2018.
The next step for the USMCA is the Senate, where it is not expected to be put to a vote until 2020.
What are some of the changes in the USMCA versus NAFTA?
- If autos are to qualify for no tariffs, then 75% of the components must be manufactured in Canada, Mexico or the United States (currently at 62.5%).
- 30% of the work on the vehicle must be performed by individuals making $16 or more per hour, with a 40% requirement in 2023.
- The new agreement allows works in Mexico to unionize.
- The definition of steel and aluminum for Mexico in regards to the automotive rules of origin includes “melted and poured” in North America.
- USMCA will be subject to mandatory review every 6 years, if all parties agree, then there is a 16 year period for review, with subsequent reviews every 16 years.
If you have any further questions how your business may be impacted by the USMCA if and when it is passed next year, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at email@example.com or firstname.lastname@example.org.
A group of 14 House Democrats sent a letter to House Speaker Nancy Pelosi asking her to to bring a vote by the end of the year on USMCA, the renegotiated trade with Canada and Mexico to replace NAFTA.
The letter to Speaker Pelosi reads:
“It is imperative that we reach a negotiated agreement early in the fall. Canada and Mexico are by far our most important trading partners, and we need to restore certainty in these critical relationships that support millions of American jobs.”
The 14 House Democrats:
Colin Allred (D-Texas)
Scott Peters (D-Calif.)
Kendra Horn (D-Okla.)
Haley Stevens (D-Mich.)
Anthony Brindisi (D-NY)
Joe Cunningham (D-SC)
Lizzie Fletcher (D-Texas)
Ben McAdams (D-UT)
Josh Harder (D-Calif.)
J. Luis Correa (D-Calif.)
Sharice L. Davids (D-Kansas)
TJ Cox (D-Calif.)
Susie Lee (D-Nevada)
Greg Stanton (D-Arizona)
According to the Associated Press, President Donald Trump had a rally in Wisconsin to promote his trade deal with Mexico and Canada, known as the United States-Mexico-Canada Agreement (USMCA). Trump was the first Republican to win Wisconsin since Ronald Reagan in 1984 and recent polling indicates Wisconsin is another battleground state in 2020.
Wisonsin exports $31 million worth of goods to Canada and $15.2 million worth of goods to Mexico; importing $15.5 million in goods from Canada and $9.3 million in goods from Mexico.
The USMCA will likely be ratified in Mexico and Canada, but Congress has not yet supported ratification. Democrat Congress members want strong labor and environmental protections. The AP article said a vote was likely to be held in September at the earliest.
If you have any questions how the new USMCA will impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at email@example.com, firstname.lastname@example.org.
This past Wednesday, Mexico became the first country to pass the new U.S.-Mexico-Canada Agreement (USCMA) to replace NAFTA. NAFTA was a free trade agreement also entered between the three countries over 25 years ago. As Mexico sends 80% of exports to the US, the passage of the trade agreement is a necessity for Mexico.
Canada’s Prime Minister Justin Trudeau is trying to get the deal through the Canadian Parliament while in the United States, House Speaker has not yet put the passage of the USMCA up for vote. The House Speaker and her Democrat allies hold a majority in the House and are requiring stronger enforcement mechanisms for the provisions related to labor and environmental rules.
While we frequently hear “tariff” and “China” in the same sentence, we will likely now start hearing “tariff” and “Mexico” more frequently as the Trump administration has placed near tariffs on imports of fresh tomatoes from Mexico.
A little background – in 1996 the US did not pursue tariffs on Mexican tomAatoes based off assurances from Mexican tomato growers would not sell their tomatoes at articially lower prices. However, last year Florida tomato growers requested the Trump administration to investigate whether Mexican tomatoes were being sold at articially low prices. In February 2019, the Trump administration issued a notice they would withdraw from the 1996 agreement on May 7th if a new deal could not be reached. Since no agreement was reached, Mexican tomatoes are now subject to a 17.5% tariff. If a subsequent investigation finds no unfair pricing, then any tariffs paid will be refunded.
Questions about the tomato tariffs, call/text David Hsu at 832.896.6288 or email at email@example.com.
According to the Politico, US House of Representative members Rep. Steve King of Iowa, Rep. Mark Meadows, and Rep. Diane Black along with 37 other conservative house members sent a letter today (Friday, November 16, 2018) to the Trump administration expressing their concerns of the LGBT protections in the USCMA agreement. The letter indicates that the LGBT protections may cause some of the signatories to the letter to not support the agreement.
In short, chapter 23 of the USMCA has requirements that workers be protected from discrimination on the basis of sex, including sexual orientation and gender identity. These LGBT protections were a priority for Canada and the Trudeau government.
The US, Canada and Mexico are expected to sign the USMCA at the G20 summit on November 30th in Argentina.
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.