USMCA

“House Democrats and the White House announced a deal Tuesday on a modified North American trade pact… They said the revamped U.S.-Mexico-Canada Agreement [USMCA] was a significant improvement over the original North American Free Trade Agreement, with Democrats crowing about winning stronger provisions on enforcing the agreement while Republicans said it will help keep the economy humming along.”
(AP News)

The left generally supports the deal as a marginal improvement on NAFTA and a win for organized labor.

“While this measure has some things not to like, it has others that are worthy. The USMCA would do away with a back-channel dispute resolution mechanism that corporations have used to demand concessions from the member governments. And the pact includes significant provisions on e-commerce, which was in its infancy when NAFTA was passed, as well as protections for U.S. copyright holders. The simple truth is that NAFTA has been a success, so a modest update is not a bad thing. Critics point to job losses in manufacturing since it went into effect. But most of the losses were from technological change or trade with countries like China… While not perfect, and leaving out some crucial areas like climate change, the USMCA is worth passing.” (Editorial Board, USA Today)

The right celebrates the deal as a marginal improvement on NAFTA and a win for President Trump.

“The agreement is far from revolutionary: 90 percent of its provisions read just like NAFTA, and the changes it implements grow out of compromise and negotiation… The biggest win is simply that an agreement appears to have been made. Now that businesses in Mexico, Canada, and the U.S. have rules around which they can plan, they will allocate resources more aggressively than when they faced uncertainties, a positive factor for economic growth and employment…

“Moreover, specific USMCA provisions should help U.S. manufacturing. The deal appears to mandate that 75 percent of a motor vehicle must be made in North America to avoid duties—up from 62.5 percent under NAFTA. This new standard would limit the ability of Asian and European automakers to enter North America duty-free. The USMCA also stipulates that 40 percent to 45 percent of any vehicle must be manufactured by workers earning at least $16 an hour. (The average for manufacturing workers in the United States is $22 an hour.) This provision would likely shift some of the assembly north from relatively low-wage Mexico.”
(Milton Ezrati, City Journal)