US Congress likely to approve new US-Mexico-Canada free trade agreement (USMCA), which will replace NAFTA.
2.0: The US Congress is likely to back a new trade deal between the US, Mexico and Canada – the USMCA. The deal was negotiated by the Trump administration as a replacement of the previous avatar of a North American free trade pact – NAFTA.
While campaigning for President, Donald Trump had frequently derided NAFTA as being detrimental to the US economy. And soon after winning the 2016 Presidential election he took the US out of it and began negotiating for a new deal with updated terms.
USMCA, besides gaining the support of major trade unions, has also garnered bipartisan support, with House Speaker Nancy Pelosi calling it better that 1994’s NAFTA. WSJ
Revamped & Revisited: Indeed, the new terms of NAFTA 2.0 look to be more favourable to the US. Besides promising the creation of thousands of new jobs and boosting the auto manufacturing and dairy industries, it also strengthens labour reservations so as to ensure that workers in the US would have a level playing field with their counterparts in Mexico, where wages are lower. CNN