LAREDO, Texas - Border leaders have welcomed the breakthrough in negotiations to ratify the United States-Mexico-Canada agreement, the successor trade deal to NAFTA.
The trade agreement is projected to raise GDP by nearly $70 billion and create upwards of 200,000 American jobs.
On Tuesday, House Speaker Nancy Pelosi announced that the House Democrats Working Group and the White House had reached agreement on the new trade pact. She said it was a “victory for American workers.”
The Mexican labor reform package contained in USMCA gives workers in Mexico the right to organize; establishes the creation of tribunals; and provides that employers must engage in collective bargaining, if requested by employees. The Mexican government has pledged nearly $1 billion to implement a law to improve labor conditions.
In Mexico City, U.S. Trade Representative Robert Lighthizer, said: "The result, I think, is the best trade agreement in history."
The U.S. Congress is expected to pass the trade deal through a vote as early as next week.
Just before Pelosi announced her support of USMCA, Trump said the revamped U.S.-Mexico-Canada Agreement will “be great” for the United States.
“It will be the best and most important trade deal ever made by the USA. Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA,” the president said in a tweet.
NAFTA, which stands for the North American Free Trade Agreement, has been in operation for more than 25 years. Border leaders credit NAFTA for dramatically improving the economic well-being of their communities.
The San Diego Regional Chamber of Commerce released the following statement from President and CEO Jerry Sanders:
“Today marks a significant step towards realizing the full passage and implementation of the USMCA. As a border region with intertwined economies built on nearly a quarter century of successful free trade, we recognize that ratification of USMCA is vital to strengthening economic prosperity, growing jobs, and supporting communities on both sides of the border.
“We urge our Congressional leaders to vote in support of this agreement and support our region’s successful future.”
Laredo Mayor Pete Saenz and Co-Interim City Manager Robert Eads are currently in Washington, D.C., to discuss the development of USMCA. They predicted the deal would increase trade and border infrastructure and opportunities for economic growth for Laredo and increase the quality of life of its citizens.
“This is the largest trade deal in the history of our nation and possibly the entire world,” Saenz said. “NAFTA has helped our economies tremendously and this updated trade deal, NAFTA 2.0 as it has been referred to, has tremendous benefits not only for our three countries, but for border communities in particular.
“Furthermore, it addresses and protects intellectual property, labor rights, fair trade and environmental concerns. Port Laredo, as the number one land port in the United States, and the second largest port in North America, stands to benefit tremendously through this deal. I thank our representatives in Washington for committing to the passage of this deal.”
Eads said: “We are fortunate to have strong border representation in Washington with leaders such as Congressman Henry Cuellar and Senators John Cornyn and Ted Cruz committed to passing this new and improved trade deal. We are also meeting personally with White House officials today to express the importance of this deal for our region. The USMCA will pave the way for future business growth, increase the quality of life of all Americans, create hundreds of thousands of new well-paying jobs and offer competitively-priced goods to domestic consumers. As a world leader in trade, Laredo is ready to take on a new era of growth and opportunity.”
The AFL-CIO has endorsed USMCA. President Richard Trumka said:
“Make no mistake, we demanded a trade deal that benefits workers and fought every single day to negotiate that deal; and now we have secured an agreement that working people can proudly support. I am grateful to House Speaker Nancy Pelosi and her allies on the USMCA working group, along with Senate champions like Sherrod Brown and Ron Wyden, for standing strong with us throughout this process as we demanded a truly enforceable agreement. I also commend Ambassador Robert Lighthizer for being a straight shooter and an honest broker as we worked toward a resolution.
“Working people are responsible for a deal that is a vast improvement over both the original NAFTA and the flawed proposal brought forward in 2017. For the first time, there truly will be enforceable labor standards-including a process that allows for the inspections of factories and facilities that are not living up to their obligations.
The USMCA also eliminates special carve outs for corporations like the giveaway to Big Pharma in the administration's initial proposal and loopholes designed to make it harder to prosecute labor violations.
“The USMCA is far from perfect. It alone is not a solution for outsourcing, inequality or climate change. Successfully tackling these issues requires a full-court press of economic policies that empower workers, including the repeal of tax cuts which reward companies for shipping our jobs overseas.
“But there is no denying that the trade rules in America will now be fairer because of our hard work and perseverance. Working people have created a new standard for future trade negotiations.
“President Trump may have opened this deal. But working people closed it. And for that, we should be very proud.”
Congressman Vicente Gonzalez was hoping to see provisions added to USMCA that addressed security in Tamaulipas.
“It is welcome news that Mexico, Canada and the United States were able to reach an agreement on this historic trade deal. While the USMCA raises the bar for enforcement and provides certainty for our farmers, ranchers, and businesses, it still falls short,” Gonzalez said.
“This agreement fails to address the single greatest threat to cross-border commerce and tourism: chronic violence and insecurity. I intend to continue pressing the governments of both the United States and Mexico until our neighbor to the south takes this seriously. The 15th District and the state of Texas stand to gain from this trade pact and a safe and secure Mexico.”
The Border Trade Alliance advocates for pro-trade policies on behalf of a network of public and private sector stakeholders. The group been actively advocating for congressional leaders to bring the USMCA to a vote and for lawmakers of both parties to support the agreement. On Tuesday, BTA applauded Speaker Nancy Pelosi and Ways and Means Committee Chairman Richard Neal for reaching an agreement with the White House and its negotiating team.
“We appreciate Speaker Pelosi and Chairman Neal for working diligently with the administration and Ambassador Lighthizer to reach an agreement on the USMCA that will facilitate a broad, bipartisan vote,” BTA Chair Paola Avila said. “The finish line is in sight. We urge all House members to vote ‘yes’ for USMCA and for their colleagues in the Senate to do the same.”
Britton Clarke, president of BTA, said USMCA modernizes NAFTA in a number of key areas.
“NAFTA has been a central component of North American prosperity since 1994, but it’s time to bring U.S. trade policy into the 21st century,” Clarke said. “From digital trade, to customs efficiencies, to small business, USMCA means new jobs and more robust economic growth. It’s the right trade agreement at the right time, and we’re confident it will pass by a wide a margin.”
IBC Bank has also welcomed the breakthrough. Its leadership team has been heavily involved in promoting free trade in North America for decades. The continuation of the world's most significant free trade agreement is essential, said Dennis E. Nixon, president and CEO of International Bank of Commerce and chairman of International Bancshares Corporation.
“USMCA delivers an agreement that will create more jobs, modernize trade in the digital age and foster innovation,” Nixon said.
“The upcoming congressional ratification of this trade agreement will continue to build upon the economic progress we have made for more than twenty-five years, and further strengthen the integration of our economies by giving our region an unprecedented level of competitiveness in the global economy. North American free trade is estimated to generate approximately $3.8 billion in commerce daily.”
Nixon pointed out that U.S. trade with Mexico and Canada reached nearly $1.4 trillion last year and supported 12 million American jobs in manufacturing, agriculture, technology and the service sector in all 50 states. He also noted that the U.S. exported approximately $289.7 billion and $265 billion in goods to Canada and Mexico, respectively, in 2018, citing statistics from the Office of the U.S. Trade Representative.
In a news release, IBC Bank stated: “USMCA contains enforceable core environmental and labor standards, improvements long sought-after by Democrats. Mexico’s Congress has already passed labor reforms required by the agreement and these provisions are more stringent than in any other U.S. trade agreement.”
The news release points to White House estimates that USMCA will add half a percentage point to U.S. economic growth, create several hundred thousand jobs and spark up to $100 billion in new investments.
Nixon serves in various leadership roles for civic and business organizations, including the U.S Chamber of Commerce, Association of South Texas Communities, Texas Border Coalition, Border Trade Alliance and the Alliance for Security and Trade.
Most recently, Nixon was named co-chair of the Trade Policy Working Group of the U.S.-Mexico CEO Dialogue. The group aims to strengthen economic and commercial ties between the two countries by convening private sector leaders from the United States and Mexico to provide joint recommendations for their respective governments on priorities in the bilateral trade and investment relationship. The Dialogue has focused heavily on the issues at ports of entry and ratification of the USMCA, as both countries have interests in staffing and infrastructure.
Gerald Schwebel, executive vice president of the Corporate International Division of IBC Bank, is widely regarded as a leading expert on international trade and finance. Schwebel frequently represents IBC Bank and its customers with top government and business leaders in the United States, Mexico and Canada.
Schwebel is the immediate past president of North America's Strategy for Competitiveness (NASCO), which is a tri-national trade coalition (U.S., Canada, and Mexico) that advocates for competitiveness through logistics, transportation infrastructure, security, energy and a skilled workforce. Additionally, Schwebel is involved with the U.S. Chamber of Commerce as a member of the U.S.-Mexico Economic Council (USMXECO), past national chairman of the Border Trade Alliance and former bi-national director of the U.S.-Mexico Chamber of Commerce.
“As a community bank, IBC Bank is committed to creating economic opportunity in the communities it serves. NAFTA has had a profoundly positive economic impact on the U.S. economy, and in the states of Texas and Oklahoma in particular. IBC Bank is pleased that the future passage of the USMCA will continue this progress for the next generation,” the IBC Bank news release added.
U.S. Senator John Cornyn said he looks forward to reviewing the USMCA agreement, hearing how it will impact Texas, and providing feedback.
“Based on Texans’ input, my top priorities have been an agreement that reflects our current economy and protects the millions of Texas jobs that rely on trade with our neighbors. Any replacement for NAFTA must reduce trade barriers for Texas farmers, ranchers, producers, and manufacturers. It is especially necessary at a time when Texans are facing headwinds from trade disputes around the world, especially our agricultural producers,” Cornyn said.
“As one of the leaders in the U.S. Senate responsible for our nation’s trade policy, I look forward to reviewing the details to ensure it’s in the best interest of Texas producers and consumers.”
Congressman Henry Cuellar pointed out that the new USMCA deal includes an authorization to double the North American Development Bank’s (NADB) recapitalization, allowing the Bank to support more projects along the border. The total investment in capital will be $3 billion with equal commitments from the United States and Mexico.
“This is a defining moment for our nation: we have an opportunity to pass one of the largest trilateral trade agreements,” Cuellar said. “The North American Free Trade Agreement gave rise to the greatest display of economic growth in the history of Texas, United States, Mexico, and Canada. Now, it is time to continue and build on this economic prosperity by passing the USMCA."
Cuellar predicted the agreement will “increase market access for U.S. farmers, strengthen intellectual property rights, provide strong labor and environment obligations, and create thousands of American jobs.”
The Laredo Democrat said he secured the deal’s signature environmental safeguard in the USMCA implementing language, outlined in legislation he authored - HR 132.
As a result, capital reauthorization for the North American Development Bank will double.
“This investment in NADB will enhance the bank’s ability to fund environmental infrastructure projects on the U.S.-Mexico border. The USMCA is good for my district, for the state of Texas, and for our country as a whole. I will be voting yes for this historic agreement,” Cuellar said.
Cuellar said he would encourage all his colleagues in the U.S. House of Representatives to “recognize the realities of our 21st century trade economy and vote yes on the USMCA.”
Cuellar thanked Speaker Pelosi, Ways and Means Committee Chairman Richard Neal, Ambassador Robert Lighthizer. He also thanked Mexico’s Foreign Secretary Marcelo Luis Ebrard, Deputy Foreign Minister Jesus Seade, Ambassador Martha Bárcena, Senator Ricardo Monreal, and House Majority Leader Mario Delgado as well as Canada’s Deputy Prime Minister Chrystia Freeland.
Editor’s Note: The main image accompanying the above news story shows House Speaker Nancy Pelosi of California speaking at a news conference about USMCA on Capitol Hill, Washington, on Tuesday, Dec. 10, 2019. (Photo credit: AP/Andrew Harnik)
