LAREDO, Texas – The Perryman Group has analyzed the likely economic impact of the United States-Mexico-Canada Agreement, the new trade pact signed into law this week by President Trump.
The economic analysis group says a strong trade agreement with Mexico and Canada is clearly a “win” for the U.S. economy.
“The USMCA ensures the free flow of trade, protecting business ties among the three nations,” the group states.
The Perryman Group, led by economist M. Ray Perryman, points out that cross-border supply chains are quite common along the borders, with certain aspects of production occurring in each country depending on relative comparative advantages.
“Without a trade agreement, such arrangements and other imports and exports would become more difficult and more costly in that trade would revert to tariff schedules provided by each country to the World Trade Organization (WTO),” the Perryman Group states.
The compared a scenario with the USMCA in place to one where the U.S., Canada, and Mexico trade under the terms of the listed tariffs with the WTO.
“For the United States, The Perryman Group estimates that having the USMCA in place leads to an additional $64.9 billion in gross product and almost 600,900 jobs compared to trading under the terms of the WTO stated tariffs. In Texas, annual gross product will be a projected $17.6 billion higher and employment 164,700 higher under the USMCA,” the Perryman Group stated.
Editor’s Note: Click here to read the Perryman Group analysis of USMCA.
Editor’s Note: The main image accompanying the above news story shows trucks waiting in a queue for border customs control, to cross into the U.S., at the Zaragoza-Ysleta border crossing bridge in Ciudad Juarez, Mexico, on December 12, 2019. (Photo credit: Reuters/Jose Luis Gonzalez)
