President Trump Announces Intent To Leave NAFTA
On Saturday, December 1st President Trump announced that his administration intends to withdraw the U.S. from the North American Free Trade Agreement (NAFTA) following his departure from the G20 summit in Buenos Aires. This move is expected to force Democrats in the House to write an edited version of the agreement. This follows a ceremonial signing of a new trade deal between the United States, Canada, and Mexico, which President Trump is calling the USMCA deal.
President Trump’s distaste of NAFTA is no secret. Since taking office, President Trump has tried to renegotiate or replace the trade agreement, which his administration has cited as being unfavorable to US economic interests in North America. After over a year of negotiations, North American leaders came to an agreement with this latest USMCA deal, which still faces congressional approval before going into effect.
President Trump’s action would require Congress to pass the measure in six months’ time. The USMCA deal presents changes in intellectual property protections for pharmaceutical companies, measures that make it easier for Mexican workers to create and enroll in labor unions, as well as action that will make it easier for American financial service companies to reach the Canadian and Mexican markets. USMCA additionally includes policies meant to inspire more car production in the United States.
USMCA additionally reaffirms NAFTA’s TN visa, a visa option that allows for greater ease for certain North American professionals.
USMCA has been losing support amongst Democratic leaders since it was announced, as Democrats believe that it does not do enough to strengthen the US automotive industry. If a deal cannot be reached within Congress, these versions of the deal would be void, which could result in restricted trade between nations that would surely impact multiple industries across the board if NAFTA is terminated.
D’Alessio Law Group is closely monitoring this news and will provide updates as they become available. For any questions regarding NAFTA/USMCA or immigration between North American countries, please reach out to your respective D’Alessio Law Group professional.