President Trump signed the U.S.-Mexico-Canada Agreement on trade Friday morning, which if approved by Congress would replace the quarter-century old North America Free Trade Agreement.
Standing beside Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau, the president signed the USMCA deal at a ceremony at the G-20 summit in Buenos Aires, Argentina.
The USMCA must still make its way through Congress for approval. There are a number of House and Senate Democrats that are adamantly against the deal, along with some Republicans. With a Democratic majority in the House next Congress, it remains unclear whether or not it will get the stamp of approval.
Still, Trump lauded the deal as the product of tough negotiations between the three North American nations. He argued each have taken “a lot of barbs and a little abuse.” He said the deal will benefit American autoworkers, farmers, and middle-income earners.
“In short, this is a model agreement that changes the trade landscape forever and this is an agreement that first and foremost benefits working people, something of great importance to all three of us here today,” Trump said.
Both Pena Nieto and Trudeau took different approaches than in their respective responses, arguing in favor of traditional “free trade” practices and a return to zero tariffs.
Despite Trump’s use of the new USMCA tag, the Canadian prime minister referred to the deal as the “new North American Free Trade Agreement.” He also said that the USMCA deal was more of a modernization of NAFTA.
Trudeau also pressed the president over American application steel and aluminum tariffs to Canadian imports. He likened the closing of the General Motors plants in Ohio and other parts of the nation as a prime reason Trump should end the tariffs, calling the plant closing a “major blow.”
“Make no mistake, we will stand up for our workers and fight for their families and their communities,” Trudeau said. “And Donald, it’s all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our two countries.”
Attending the ceremony shortly before leaving office, Nieto said the new agreement is a step in the right direction toward a more integrated international economy.
“Revamping the new trade agreement was aimed to preserve the view of an integrated North America with the firm belief that together we are stronger and more competitive,” Nieto said.
After the signing ceremony, U.S. Trade Representative Robert Lighthizer told reporters that tariffs will remain in place and the U.S. will continue to seek “free and fair” trade deals.
“The steel and aluminum tariffs do continue,” Lighthizer said. “We want an agreement that’s fair to Mexico and fair to Canada but maintains the integrity of the president’s steel and aluminum programs.”
