Business groups pen letter to Congress, calling for USMCA to be made law
While the United States Mexico Canada Agreement (USMCA) is not a done deal until it is signed off by Congress and signed into law by President Trump, that has not stopped business concerns from clamoring for that to happen.
That was made clear in a letter sent to the members of Congress by more than 600 United States-based business groups and more than 30 industries. Some of the groups that are part of the letter include the United States Chamber of Commerce, the American Chemistry Council, National Association of Manufacturers, the National Retail Federation, and the Railway Supply Institute, among others.
The letter pulled no punches in explaining to Congress why action on USMCA is needed sooner than later.
“More than 12 million American jobs depend on trade with Canada and Mexico,” the letter noted. “U.S. manufacturers export more made-in-America manufactured goods to our North American neighbors than they do to the next 11 largest export markets combined, and the two countries account for nearly one-third of U.S. agricultural exports. They are also the top two export destinations for U.S. small and medium-size businesses, more than 120,000 of which sell their goods and services to Canada and Mexico. Approval of USMCA will ensure U.S. manufacturers, farmers, and service providers can continue to access the Canadian and Mexican markets. The new pact guarantees that virtually all U.S. exports will enter these markets tariff-free.”
As for other benefits of USMCA, the letter said it will also modernize North American trade rules. As an example, it said when NAFTA was negotiated 25 years ago, e-commerce was not prevalent and is not included in NAFTA, and it added that
USMCA’s digital trade chapter sets a new, high standard, as the agreement does in areas from intellectual property protection to trade in services.
“By creating a level playing field for trade in North America, USMCA will help U.S. companies and the workers they employ compete in our top two export markets,” the letter said. “The case for the agreement’s approval is strong. We urge Congress to approve USMCA as soon as possible.”
A recent LM feature explained that USMCA is actually based on the same rules and procedures and most of the same products, noting that analysts say that there are some great environmental and labor regulation improvements, and it incentivizes domestic production of cars and trucks. What’s more, it also observed that NAFTA is the first free trade agreement that has ever included intellectual property protections, which are very timely given the current trade wars that were triggered by the alleged theft of American intellectual property by China and other nations.
