President Donald Trump signed on Wednesday in a ceremony in Washington the bill of the Treaty between Mexico, the United States and Canada (T-MEC USMCA), eager to show the pact that governs trade rules between the three North American neighbors as an important victory this year election, while he is being subjected to a political trial.
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The Democrats, key in the approval and modification of this treaty, were not invited to the White House for the ceremony.
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Trump said this treaty, which replaces the previous NAFTA. North American Free Trade Agreement of 1994 or NAFTA promises a “glorious future” for American industry.
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“Today, we are finally ending the NAFTA nightmare,” he said at the signing ceremony.
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Trump made NAFTA NAFTA renegotiation a priority during his 2016 campaign, although trade experts say the impact of the new T-MEC will be modest.
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The agreement that will replace NAFTA was approved by both parties in Congress. Mexico has already ratified the agreement and Canada must still do the same so that it can enter into force.
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´Canada and Mexico are the two main export markets for US goods. The new pact, together with the signing of a “Phase One” agreement with China, is expected to reduce trade tensions that helped curb economic growth worldwide.
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Trump has presented the agreement as “a new business model for the 21st century.” Speaking to his supporters at a rally in New Jersey on Tuesday night, Trump said: “Tomorrow we will replace the nightmare of NAFTA, one of the worst trade deals in history.”
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NAFTA, which entered into force in 1994, broke down trade barriers between the three North American countries and trade between them increased, but Trump and other critics said that NAFTA encouraged factories to leave the United States and relocate to Mexico. to take advantage of lower-wage labor.
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Trump threatened to leave NAFTA if he could not get a better trade deal for the United States, creating uncertainty about regional trade.
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