US Trade Deals With Mexico, Canada On Track Despite Trump Impeachment Plans: Pelosi

The Trump impeachment will not come in the way of U.S. House of Representatives approving the trade the agreement signed by President Donald Trump with Canada and Mexico, known as USMCA, per Speaker Nancy Pelosi.

Pelosi said on Thursday that the House is on a “path to yes” the agreement.

The House Democrats had been under pressure from the Trump administration to settle their concerns over the United States-Mexico-Canada Agreement that is replacing the existing $1 trillion North American Free Trade Agreement (NAFTA) and approve it fast.

Pelosi evaded questions on what changes Democrats have secured in the trade agreement.

In the U.S, trade deals must get approval from the U.S. Congress. In the two chambers, Republicans dominate the Senate while Democrats have an upper hand in the House of Representatives. The trade deal was signed in November 2018.

“We are moving with the U.S.-Mexico-Canada trade agreement, making progress every day,” Pelosi said.

Republicans are concerned that the delay in ratifying the deal could make it bog down in the din of 2020 U.S. presidential election race. The Democratic Party wants changes in the climate provisions under the deal and has an issue with some provisions on pharmaceuticals.

Pelosi’s comments also coincide with reports that Mexico complaining that the timetable has slipped for the U.S. to endorse the trade deal. Mexico approved the trade deal while Canada known for businesses like Canada Goose has not.

The new trade deal was negotiated after the Republican President asserted that NAFTA was not favorable to the interests of the U.S making consistent Trump news on his stand on various trade deals.

Meanwhile, House Ways and Means Committee Chairman Richard Neal said the trade deal’s approval by lawmakers may come soon. He had a meeting with House Democratic working group interacting with U.S. Trade Representative Robert Lighthizer.

Neal said he would meet Canadian Prime Minister Justin Trudeau soon and met Mexican President Andres Manuel Lopez Obrador in early October.

Auto industry’s concerns over USMCA

Meanwhile, the auto industry in Mexico and Canada has concerns over the tighter rules in USMCA regarding duty-free access to North American markets despite supporting the trade pact’s faster approval.

The USMCA insists that 75 percent of a car must be made in the three countries to qualify as “made in North America” for duty-free market access.

Also, it must contain 70 percent of North American steel and aluminum, 40 percent production in plants with an average wage of US$16 an hour or more.

There is concern among auto investors in Mexico that the wage part will tilt production and investment into the U.S. by weaning them away from Mexico.