The USMCA (US-Mexico-Canada Agreement) is officially active!
July 10, 2020
The new trade deal fulfills one of Trump’s campaign promises by improving trade relations with Canada and Mexico. Here's a quick overview and a reminder of how that affects trade for Michiganders.
What does USMCA do for workers? Think improvement, not replacement. Key points of the deal are bringing back manufacturing to America, ensuring free trade for the tech sector, and protecting American workers against cheap, foreign labor.
A Big Boost for Business. Official estimates predict USMCA will boost GDP by about $68 billion while creating a whopping 176,000 jobs!
Ag exports are expected to increase by $423 million. More American cheese, milk, and egg products will be sold to our neighbors which means an increase in jobs and profits for Michigan’s dairy farms.
The auto supply chain may be redirected back to the USA thanks to new requirements on automobile production. In order to avoid import tariffs 75% of the component parts of new cars must be produced in North America. The goal is to decrease the reliance on inexpensive parts sourced from overseas, which could be a big win for our auto industry!
More Money, Less Problems Another requirement for cars is that they must have 40% of parts built by workers earning at least the equivalent of $16 an hour. Better wages for Mexicans mean a more competitive manufacturing industry in the USA, and perhaps disincentivize immigration north.