Pelosi announces agreement on North American trade pact

WASHINGTON (AP) — House Speaker Nancy Pelosi on Tuesday announced agreement on a modified North American trade pact, handing President Donald Trump a major Capitol Hill win on the same day that Democrats announced their impeachment charges against him.

The California Democrat said the revamped U.S.-Mexico-Canada Agreement is a significant improvement over the original North American Free Trade Agreement, crediting Democratic negotiators for winning stronger provisions on enforcing the agreement.

“There is no question of course that this trade agreement is much better than NAFTA," Pelosi said in announcing the agreement, saying the pact is “infinitely better than what was initially proposed by the administration."

Trump said the revamped trade pact 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.

In Mexico City, Mexican Foreign Relations Secretary Marcelo Ebrard said Monday night that there would be a meeting of the three countries’ negotiating teams Tuesday “to announce the advances achieved” on the trade agreement. U.S. Trade Representative Robert Lighthizer is slated to appear.

The announcement came on the same morning that Democrats outlined impeachment charges against Trump. The pact is Trump's top Capitol Hill priority along with funding for his long-sought border fence.

Vice President Mike Pence, a foot soldier in the administration's campaign to sell the accord, said Pelosi had “acquiesced" in slating the pact for a vote this year. 

RELATED: Take a look at Nancy Pelosi through the years: 

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Nancy Pelosi through the years
WASHINGTON, DC - MAY 8: File photo dated 08 May, 1996 shows US Congresswoman Nancy Pelosi, D-CA, speaking during a Capitol Hill press conference in Washington, DC. House Democratic leader Dick Gephardt (R, D-MO) is expected to announce 07 November, 2002 that he will not seek another term after the Republican opponents took both the House of Representatives and the Senate in mid-term elections 05 November. One of two Democrats vying to fill the spot is is Minority Whip Nancy Pelosi; the other is chairman of the Democratic caucus Martin Frost (D, TX). (Photo credit should read J. DAVID AKE/AFP/Getty Images)
WASHINGTON, DC - MAY 20: US President Bill Clinton signs the Ryan White Comprehensive AIDS Resources Emergency Act Amendments of 1996 20 May at the White House in Washington DC. Standing behind Clinton are (L-R) Jeanne White, mother of Ryan, White House Aide Patsy Fleming, Sen. Bill Frist (R-TN), Rep. Henry Waxman(D-CA), Rep. Nancy Pelosi(D-CA). (Photo credit should read CHUCK KENNEDY/AFP/Getty Images)
UNITED STATES - JUNE 25: HOUSE APPROPRIATIONS: Ranking member Nancy Pelosi ,D-Calif., during the House Appropriations,Foreign Operations subcommittee markup of FY 98 foreign operations appropriations. (Photo by Douglas Graham/Congressional Quarterly/Getty Images)
SLUG:NA/BAILOUT DATE:9/26/08 WASHINGTON, DC CREDIT: DOMINIC BRACCO II From left, House Speaker Nancy Pelosi (D-CA), and House Financial Services Committee Chairman Barney Frank (D-MA) speak during a press conference about legislation for a bailout of the financial crisis on Capitol Hill on Sept. 26, 2008. (Photo by Dominic Bracco Ii/The Washington Post/Getty Images)
Washington, UNITED STATES: US President George W. Bush is applauded by Speaker of the House Nancy Pelosi (R) and Vice President Dick Cheney (L) as he delivers the State of the Union address to a joint session of Congress at the Capitol in Washington 23 January 2007. AFP PHOTO/Larry Downing/Pool (Photo credit should read LARRY DOWNING/AFP/Getty Images)
UNITED STATES - OCTOBER 10: WHIP RACE--Nancy Pelosi, D-Calif., left, victor in the Democratic Whip race, talks to reporters and celebrates with supporting members after the Democratic caucus elected her to replace outgoing Whip David E. Bonior, D-Mich., who is running for governor of Michigan. (Photo by Scott J. Ferrell/Congressional Quarterly/Getty Images)
WASHINGTON, : Rep. Nancy Pelosi (D-CA,L) newly elected Democratic Minority Leader raises her hand with outgoing leader Dick Gephardt (D-MO) 14 November, 2002 on Capitol Hill in Washington, DC. Pelosi's election marks the first time in the history of the US Congress that a woman will lead her party. AFP PHOTO MIKE THEILER (Photo credit should read MIKE THEILER/AFP/Getty Images)
UNITED STATES - JULY 26: House Minority Leader Nancy Pelosi (D-CA) speaks to the California delegate breakfast in Boston, Massachusetts on the first day of the Democratic National Convention, July 26, 2004. (Photo by Chris Kleponis/Bloomberg via Getty Images)
UNITED STATES - FEBRUARY 02: STATE OF THE UNION ADDRESS--House Minority Leader Nancy Pelosi, D-Calif., and 2004 presidential candidate Sen. John Kerry, D-Mass., talk before President George W. Bush's State of the Union Address to a joint session of Congress. (Photo by Scott J. Ferrell/Congressional Quarterly/Getty Images)
Congressman John Lewis, Congresswoman Maxine Waters, Harry Belafonte, Jessie Jackson and Congresswoman Nancy Pelosi (Photo by Moses Robinson/WireImage)
WASHINGTON - JUNE 04: U.S. Speaker of the House Rep. Nancy Pelosi (D-CA) addresses the 2008 American Israel Public Affairs Committee (AIPAC) Policy Conference at the Washington Convention Center June 4, 2008 in Washington, DC. Democratic U.S. presidential hopefuls Sen. Hillary Clinton (D-NY) and Sen. Barack Obama (D-IL) are scheduled to speak to the same event. (Photo by Alex Wong/Getty Images)
WASHINGTON - MAY 22: Speaker of the House Nancy Pelosi (D-CA) holds her weekly news conference at the U.S. Capitol May 22, 2009 in Washington, DC. Pelosi turned the news conference into an opportunity to list what she and the Democratic House leadership considered their successes of the 111th Congress' first session. She took a handful of questions about her upcomming trip to China and her statements about the CIA. (Photo by Chip Somodevilla/Getty Images)
UNITED STATES - JULY 23: House Speaker Nancy Pelosi, a Democrat from California, right, and Nuri al-Maliki, Iraq's prime minister, shakes hands while addressing the media before a meeting at the Capitol in Washington, D.C., U.S., on Thursday, July 23, 2009. Maliki pledged to mend sectarian divisions and fight corruption as he urged the international community to continue providing support to his nation. (Photo by Brendan Hoffman/Bloomberg via Getty Images)
WASHINGTON, DC- Jan. 05: House Speaker John A. Boehner, R-Ohio, accepts the gavel from outgoing House Speaker Nancy Pelosi, D-Calif., as the 112th Congress convenes at the U.S. Capitol. (Photo by Scott J. Ferrell/Congressional Quarterly/Getty Images)
WASHINGTON, DC - JUNE 23: House Minority Leader Nancy Pelosi (D-CA) works with staff before a vote on the House floor during a typically busy day on Capitol Hill in Washington DC, Thursday, June 23, 2011. (Photo by Melina Mara/ The Washington Post via Getty Images)
UNITED STATES â DECEMBER 1: House Minority Leader Nancy Pelosi, D-Calif., holds her weekly on camera news conference in the Capitol on Thursday, Dec. 1, 2011. (Photo By Bill Clark/CQ Roll Call)
BEVERLY HILLS, CA - APRIL 22: Los Angeles Mayor Antonio Villaraigosa (L) and Democratic Leader Nancy Pelosi attends the Public Counsel's 2012 William O. Douglas Dinner at The Beverly Hilton Hotel on April 22, 2012 in Beverly Hills, California. (Photo by Imeh Akpanudosen/Getty Images)
CHARLOTTE, NC - SEPTEMBER 05: House Minority Leader Sen. Nancy Pelosi (D-CA) waves as she takes the stage during day two of the Democratic National Convention at Time Warner Cable Arena on September 5, 2012 in Charlotte, North Carolina. The DNC that will run through September 7, will nominate U.S. President Barack Obama as the Democratic presidential candidate. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - NOVEMBER 14: House Minority Leader Rep. Nancy Pelosi (D-CA) speaks to the media as female House Democrats gather around during a news conference at the U.S. Capitol, on November 14, 2012 in Washington, DC. Leader Pelosi said that she has decided continue to lead the House Democrats and does not wish to retire at this time. (Photo by Mark Wilson/Getty Images)
U.S. House Minority Leader Nancy Pelosi, a Democrat from California, bottom center, stands for a photograph with Democratic women of the House on the steps of the U.S. Capitol Building in Washington, D.C., U.S., on Wednesday, Jan. 7, 2015. 65 House Democratic women are part of the 114th Congress, the largest number of women in a party Caucus in the history of the Congress of the United States. Photographer: Andrew Harrer/Bloomberg via Getty Images
LOS ANGELES, CA - FEBRUARY 07: (L-R) Former Vice President of the United States Al Gore, Apple's SVP of Internet Software and Services, Eddy Cue, CEO of Apple Tim Cook, music producer Jimmy Iovine and Minority Leader of the United States House of Representatives, Nancy Pelosi attend the Pre-GRAMMY Gala and Salute to Industry Icons honoring Martin Bandier at The Beverly Hilton Hotel on February 7, 2015 in Los Angeles, California. (Photo by Lester Cohen/WireImage)
UNITED STATES - JULY 15: Vice President Joe Biden and House Minority Leader Nancy Pelosi, D-Calif., leave a meeting with House Democrats in the Capitol Visitor Center where Biden briefed members on the nuclear deal with Iran, July 15, 2015. (Photo By Tom Williams/CQ Roll Call)
UNITED STATES - JULY 14: House Minority Leader Nancy Pelosi, D-Calif., introduces presidential candidate Hillary Rodham Clinton to the press for her on the Iran nuclear deal following her meeting with House Democrats during their weekly caucus meeting in the U.S. Capitol on Tuesday, July 14, 2015. (Photo By Bill Clark/CQ Roll Call)
WASHINGTON, DC - Democratic House Minority Leader Nancy Pelosi works with staff in her House Leadership office during a typically hectic legislative day on Capitol Hill in Washington, DC on Wednesday May 18, 2016. (Photo by Melina Mara/The Washington Post via Getty Images)
Democratic presidential candidate Hillary Clinton (L) walks with House Minority Leader Nancy Pelosi after attending a meeting with the House Democratic Caucus on June 22, 2016 at the US Capitol in Washington, DC. / AFP / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
UNITED STATES - JULY 28: House Democratic Leader Nancy Pelosi speaks at the Democratic National Convention in Philadelphia on Thursday, July 28, 2016. (Photo By Bill Clark/CQ Roll Call)
WASHINGTON, DC - SEPTEMBER 14: House Minority Leader Nancy Pelosi (D-CA), chats with House Speaker Paul Ryan (R-WI), during a memorial service to honor the late Rep. Mark Takai (D-HI), 49, who died from pancreatic cancer last July, at the US Capitol September 14, 2016 in Washington, DC. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - SEPTEMBER 21: (L-R) Senate Majority Leader Mitch McConnell (R-KY), Sen. Chuck Schumer (D-NY), Speaker of the House Paul Ryan (R-WI), House Majority Leader Kevin McCarthy (R-CA) and House Minority Leader Nancy Pelosi (D-CA) drive nails into a piece of lumber at the 'First Nail Ceremony' September 21, 2016 outside the U.S. Capitol in Washington, DC. The ceremony marked the official launch of construction on the Inaugural platform where the next President of the United States will take the oath of office on Friday, January 20, 2017. (Photo by Win McNamee/Getty Images)
WASHINGTON, DC - SEPTEMBER 22: House Minority Leader Nancy Pelosi (D-CA) answers questions during her weekly press conference at the U.S. Capitol September 22, 2016 in Washington, DC. Pelosi answered questions on a range of topics, including congressional negotiations on a new continuing resolution. (Photo by Win McNamee/Getty Images)
U.S. Vice President-elect Mike Pence, right, shakes hands with House Minority Leader Nancy Pelosi, a Democrat from California, following a meeting in Washington, D.C., U.S., on Thursday, Nov. 17, 2016. During their closed-door meeting, Pelosi expressed strong concerns about Trump's decision to name former Breitbart News chief Steve Bannon to be his chief White House strategist, and asked him to reconsider the appointment. Photographer: Chip Somodevilla/Pool via Bloomberg
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“The USMCA will create even more jobs for the hardworking families who are the backbone of our economy – the farmers, ranchers, manufacturers, and small business owners,” Pence said in a statement.

Pelosi is the key congressional force behind the accord, which updates the 25-year-old NAFTA accord that many Democrats — especially from manufacturing areas hit hard by trade-related job losses — have long lambasted.

Pelosi has negotiated with the administration extensively to win stronger enforcement provisions. Her efforts have appeared to build support among Democrats.

“There are those who I read about in one place or another that say, ‘why would you give President Trump a victory?'" Pelosi said Monday night at a Wall Street Journal event for corporate executives. “Well, why wouldn't we? This is the right thing to do for our trade situation, for our workers."

NAFTA eliminated most tariffs and other trade barriers involving the United States, Mexico and Canada. Critics, including Trump, labor unions and many Democratic lawmakers, branded the pact a job killer for the United States because it encouraged factories to move south of the border, capitalize on low-wage Mexican workers and ship products back to the U.S. duty free.

Weeks of back-and-forth, closely monitored by Democratic labor allies such as the AFL-CIO, have brought the two sides together. Pelosi is a longtime free trade advocate and supported the original NAFTA in 1994. Trump has accused Pelosi of being incapable of passing the agreement because she is too wrapped up in impeachment.

The original NAFTA badly divided Democrats but the new pact is more protectionist and labor-friendly, and Pelosi is confident it won't divide the party, though some liberal activists took to social media to carp at the agreement.

“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,"said AFL-CIO President Richard Trumka. “President Trump may have opened this deal. But working people closed it."

Business groups like the U.S. Chamber of Commerce also chimed in to support the long-delayed agreement.

“We are optimistic this development will open the door to final approval of USMCA on a bipartisan basis by the end of the year, which will especially benefit American farmers, manufacturers, and small businesses,” Thomas Donohue, CEO of the U.S. Chamber of Commerce, said in a statement.

“This agreement has been the result of painstaking bipartisan negotiations over the past year, and would not have been possible if not for the willingness of President Trump to work patiently with Democrats to get something done that he knew was in the best interests of American workers, farmers and manufacturers," said Sen. Rob Portman, R-Ohio, a former U.S. trade representative.

Republicans leaders and lawmakers have agitated for months for the accord but Pelosi has painstakingly worked to bring labor on board. Democrats see the pact as significantly better than NAFTA and Trumka's endorsement is likely to add to a strong vote by Democrats that have proven skeptical of trade agreements.

“I think the vote's going to be pretty good," said No. 2 House Democrat Steny Hoyer, D-Md., a veteran party whip. “There's a general agreement — not total agreement, it's not unanimity — that USMCA is better. It's an improvement. And to the extent that Trumka and labor comes out and says that this is an improvement, I think that that will be unifying."

The pact contains provisions designed to nudge manufacturing back to the United States. For example, it requires that 40% to 45% of cars eventually be made in countries that pay autoworkers at least $16 an hour — that is, in the United States and Canada and not in Mexico.

The trade pact picked up some momentum after Mexico in April passed a labor-law overhaul required by USMCA. The reforms are meant to make it easier for Mexican workers to form independent unions and bargain for better pay and working conditions, narrowing the gap with the United States.

The end-stage talks focused on provisions to improve the enforcement of the accord.

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