New trade deal to replace NAFTA announced Monday
Monday morning, President Trump, appearing alongside Kentuckian Kelly Craft, Ambassador to Canada, announced that the United States, Mexico and Canada had reached a long-awaited trade deal to replace the 25-year-old North American Free Trade Agreement (NAFTA).
The new deal, titled USMCA — United States-Mexico-Canada Agreement, includes requirements such as 75 percent of automotive content to be made in North America, up from 62.5 percent, and that 40 to 45 percent of the automotive content is made by workers making at least $16 an hour.
“We have successfully completed negotiations on a brand-new deal to terminate and replace NAFTA and the NAFTA trade agreements with an incredible new U.S.-Canada-Mexico agreement,” Trump said, pledging that “it will transform North America back into a manufacturing powerhouse.”
The Kentucky Chamber has urged the importance of continuing a trade agreement between the three nations as Kentucky is home to many signature industries- including bourbon, manufacturing and agriculture- all of which rely on strong trade relationships. Kentucky generates $30.9 billion in exports and supports 539,000 jobs through trade.
Though an agreement between the three nations has been reached, it still must go through Congressional approval.
Stay tuned to The Bottom Line for further developments on pending trade agreements.