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Donald Trump signs trade deal with Canada and Mexico, ‘ending the Nafta nightmare’

US President Donald Trump holds the signed USMCA on the South Lawn of the White House on Wednesday. Photo: EPA-EFE. Sketched by the Pan Pacific Agency.

WASHINGTON D.C., Jan 29, 2020, Reuters. US President Donald Trump on Wednesday signed a new North American trade agreement during an outdoor ceremony at the White House attended by about 400 guests – but not the key Democrats who helped secure congressional passage of the deal, South China Morning Post reported.

Trump, on trial in the US Senate on charges of abusing power and obstructing Congress, welcomed Republican senators at the South Lawn event by name. Other guests included lawmakers from around the country, workers, farmers and chief executives, as well as officials from Mexico and Canada, the White House said.

The US-Mexico-Canada Agreement (USMCA) will replace the 26-year-old North American Free Trade Agreement, including tougher rules on labour and automotive content but leaving US$1.2 trillion in annual US-Mexico-Canada trade flows largely unchanged.

“Today, we are finally ending the Nafta nightmare and signing into law the brand-new US-Mexico-Canada Agreement,” Trump told the crowd.

Flanked by a group of American workers wearing hard hats, Trump said the agreement would bolster US economic growth, benefiting farmers, workers and manufacturers.

He said his concerns about Nafta-triggered outsourcing had triggered his run for the presidency in 2016.

A wide array of business groups welcomed the agreement, which must still be ratified by Canada’s parliament before it can take effect. Mexico has already approved the deal.

“We have questions and we have a process for ratification. I just look forward to getting, getting through it responsibly and rapidly because it’s so important for Canadians,” he said.

Excluded from the event were House of Representatives Speaker Nancy Pelosi, House Ways and Means Committee Chairman Richard Neal and other Democrats who negotiated with the Trump administration for months to expand the pact’s labour, environmental and enforcement provisions and pave the way for its approval by the Democratic-controlled House.

Trump did not mention the work done by Pelosi or other Democrats on the trade pact, but US Trade Representative Robert Lighthizer, in his remarks at the ceremony, acknowledged the role that House leaders played in getting the deal done.

The event came as US senators will start to pose questions in Trump’s impeachment trial and ahead of a key vote later this week on whether to allow the calling of witnesses such as former national security adviser John Bolton.

Trump lashed out against Bolton on Twitter on Wednesday after Bolton wrote in an unpublished book manuscript that the president told him he wanted to freeze US$391 million in security aid to Ukraine until Kiev pursued investigations of Democrats, including former vice-president Joe Biden, a top contender for the Democratic nomination to face Trump in this year’s election.

Pelosi told reporters that Democrats had ensured “vast improvements” to the USMCA before it was approved, despite their absence from Trump’s White House event, adding, “I hope he understands what he’s signing today.”

Neal told reporters some Republican senators thought the deal was “too Democratic”. He said the final accord won stronger protections for workers, better enforcement of environmental provisions and steps to prevent higher drug prices.

Congresswoman Rosa DeLauro told reporters in a separate teleconference that Democrats would remain vigilant on oversight of the improved trade deal and would fight for even better climate protections in future trade deals.

The US Senate this month overwhelmingly approved legislation to implement the USMCA, sending the measure to Trump for signing into law.

US lawmakers said it was unclear when the accord would take effect, since Canada’s main opposition Conservative Party had expressed concerns about aspects of the deal and there was no exact timeline for ratification there.

Even after Canada ratifies the accord, implementation could take several more months since the three countries must show they are meeting their obligations before the clock starts ticking on an effective date.

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