House Speaker Nancy Pelosi of Calif., speaks at a news conference on Capitol Hill in Washington, Tuesday, Dec. 10, 2019, on Capitol Hill in Washington. (AP Photo/Susan Walsh)

House Speaker Nancy Pelosi of Calif., speaks at a news conference on Capitol Hill in Washington, Tuesday, Dec. 10, 2019, on Capitol Hill in Washington. (AP Photo/Susan Walsh)

Democrats announce agreement on North American trade pact

The new deal will replaced NAFTA

House Speaker Nancy Pelosi on Tuesday announced agreement on a modified North American trade pact, handing President Donald Trump a major Capitol Hill win on the same day that Democrats announced their impeachment charges against him.

The California Democrat said the revamped U.S.-Mexico-Canada Agreement is a significant improvement over the original North American Free Trade Agreement, crediting Democratic negotiators for winning stronger provisions on enforcing the agreement.

“There is no question of course that this trade agreement is much better than NAFTA,” Pelosi said in announcing the agreement, saying the pact is “infinitely better than what was initially proposed by the administration.”

Trump said the revamped trade pact will “be great” for the United States.

“It will be the best and most important trade deal ever made by the USA. Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!,” the president said in a tweet.

In Mexico City, Mexican Foreign Relations Secretary Marcelo Ebrard said Monday night that there would be a meeting of the three countries’ negotiating teams Tuesday “to announce the advances achieved” on the trade agreement. U.S. Trade Representative Robert Lighthizer is slated to appear.

The announcement came on the same morning that Democrats outlined impeachment charges against Trump. The pact is Trump’s top Capitol Hill priority along with funding for his long-sought border fence.

Vice-President Mike Pence, a foot soldier in the administration’s campaign to sell the accord, said Pelosi had “acquiesced” in slating the pact for a vote this year.

“The USMCA will create even more jobs for the hardworking families who are the backbone of our economy – the farmers, ranchers, manufacturers, and small business owners,” Pence said in a statement.

Pelosi is the key congressional force behind the accord, which updates the 25-year-old NAFTA accord that many Democrats — especially from manufacturing areas hit hard by trade-related job losses — have long lambasted.

Pelosi has negotiated with the administration extensively to win stronger enforcement provisions. Her efforts have appeared to build support among Democrats.

“There are those who I read about in one place or another that say, ‘why would you give President Trump a victory?’” Pelosi said Monday night at a Wall Street Journal event for corporate executives. “Well, why wouldn’t we? This is the right thing to do for our trade situation, for our workers.”

NAFTA eliminated most tariffs and other trade barriers involving the United States, Mexico and Canada. Critics, including Trump, labour unions and many Democratic lawmakers, branded the pact a job killer for the United States because it encouraged factories to move south of the border, capitalize on low-wage Mexican workers and ship products back to the U.S. duty free.

Weeks of back-and-forth, closely monitored by Democratic labour allies such as the AFL-CIO, have brought the two sides together. Pelosi is a longtime free trade advocate and supported the original NAFTA in 1994. Trump has accused Pelosi of being incapable of passing the agreement because she is too wrapped up in impeachment.

READ MORE: Feds face calls to protect aluminum industry as new NAFTA deal appears close

The original NAFTA badly divided Democrats but the new pact is more protectionist and labour-friendly, and Pelosi is confident it won’t divide the party, though some liberal activists took to social media to carp at the agreement.

“There is no denying that the trade rules in America will now be fairer because of our hard work and perseverance. Working people have created a new standard for future trade negotiations,”said AFL-CIO President Richard Trumka. “President Trump may have opened this deal. But working people closed it.”

Business groups like the U.S. Chamber of Commerce also chimed in to support the long-delayed agreement.

“We are optimistic this development will open the door to final approval of USMCA on a bipartisan basis by the end of the year, which will especially benefit American farmers, manufacturers, and small businesses,” Thomas Donohue, CEO of the U.S. Chamber of Commerce, said in a statement.

“This agreement has been the result of painstaking bipartisan negotiations over the past year, and would not have been possible if not for the willingness of President Trump to work patiently with Democrats to get something done that he knew was in the best interests of American workers, farmers and manufacturers,” said Sen. Rob Portman, R-Ohio, a former U.S. trade representative.

Republicans leaders and lawmakers have agitated for months for the accord but Pelosi has painstakingly worked to bring labour on board. Democrats see the pact as significantly better than NAFTA and Trumka’s endorsement is likely to add to a strong vote by Democrats that have proven skeptical of trade agreements.

“I think the vote’s going to be pretty good,” said No. 2 House Democrat Steny Hoyer, D-Md., a veteran party whip. “There’s a general agreement — not total agreement, it’s not unanimity — that USMCA is better. It’s an improvement. And to the extent that Trumka and labour comes out and says that this is an improvement, I think that that will be unifying.”

The pact contains provisions designed to nudge manufacturing back to the United States. For example, it requires that 40% to 45% of cars eventually be made in countries that pay autoworkers at least $16 an hour — that is, in the United States and Canada and not in Mexico.

The trade pact picked up some momentum after Mexico in April passed a labour-law overhaul required by USMCA. The reforms are meant to make it easier for Mexican workers to form independent unions and bargain for better pay and working conditions, narrowing the gap with the United States.

The end-stage talks focused on provisions to improve the enforcement of the accord.

Andrew Taylor, The Associated Press


Like us on Facebook and follow us on Twitter.

Just Posted

An SUV sits where it crashed through the front window of the 2:18 Run store in Fairfield Plaza, after the driver appeared to lose control on Monday afternoon. (Photo by Phil Nicholls)
Driver crashes through front window of Victoria running store in Fairfield

Phil Nicholls of 2:18 Run said crash sounded like an earthquake at first

Processed sewage is still being deposited at the Hartland landfill rather than sent as biosolids to a Richmond cement plant. (Black Press Media file photo)
Biosolids at Hartland still being placed on landfill in Saanich

Richmond cement plant up and running, but CRD end product not suitable for purpose

Seismic upgrading and expansion work at Victoria High School is about a year behind due to pandemic-related factors, the Greater Victoria School District announced. (Photo by Cole Descoteau)
Victoria High School seismic work, expansion a year behind schedule

Greater Victoria School District now targeting September 2023 for reopening of historic school

Elk Lake Drive area resident Michael Blayney protests a proposed multi-building development for his Royal Oak neighbourhood, outside Saanich municipal hall on Monday (June 14). (Photo by Megan Atkins-Baker/News Staff)
Demonstrators protest 11-storey development on Elk Lake Drive in Saanich

Saanich locals gather at municipal hall to protest development, public hearing goes Tuesday

The Greater Victoria Harbour Authority is calling on Transport Canada to rescind its ban to Feb. 28, 2022 on cruise ship stops in Canada, to allow planning to begin in advance of a reopening of the cruise industry next year.
Greater Victoria Harbour Authority seeks end to federal ban on cruise ship stops in Canada

Greater Victoria Harbour Authority CEO hopes cruises will resume by 2022

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

Neighbours fight a small late-night bush fire with garden hoses and shovels in Cinnabar Valley on June 5. They couldn’t get help from local fire services because the fire was located in an area under B.C. Wildfire Services jurisdiction. (Photo courtesy Muriel Wells)
Neighbours on edge of Nanaimo city limits left to put out bush fire themselves

Cinnabar Valley residents tackle fire with hoses and buckets for two and a half hours

Darren Campbell’s truck (pictured) was stolen when he stopped to check on a car in a ditch on Cowichan Bay Road on Monday morning. (Facebook photo)
Vancouver Island Good Samaritan’s truck stolen in nasty trick

‘Try to be a Good Samaritan and my $20,000 truck gets stolen right under my nose’

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

Creative handmade signs abound at the June 13 Tofino rally for old growth trees. (Nora O’Malley photo)
VIDEO: Tofino stands in solidarity for Fairy Creek Blockades

Over 150 supporters attend rally hosted by Friends of Clayoquot Sound

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

Most Read