Senate passes US-Canada-Mexico trade deal, a Trump priority

WASHINGTON (AP) — The Senate overwhelmingly approved a new North American trade agreement Thursday that rewrites the rules of trade with Canada and Mexico and gives President Donald Trump a major policy win before senators turn their full attention to his impeachment trial.

The vote was 89-10.

The measure goes to Trump for his signature. It would replace the 25-year-old North American Free Trade Agreement, known as NAFTA, which tore down most trade barriers and triggered a surge in trade. But Trump and other critics blamed that pact for encouraging U.S. companies to move their manufacturing plants south of the border to take advantage of low-wage Mexican laborers.

Passage of the trade bill came one day after Trump signed a new trade agreement with China, easing trade tensions between the economic powers.

“Quite a week of substantive accomplishments for the nation, for the president and for our international trade," said Senate Majority Leader Mitch McConnell, R-Ky., shortly before the vote on the U.S.-Mexico-Canada deal.

Trump campaigned in 2016 on ripping up trade deals that he said added to the nation’s trade deficit and cost the country manufacturing jobs. He promised he would rewrite NAFTA if elected, a pact he described as “the worst trade deal in history.” He can now go to swing states such as Michigan, Pennsylvania and Wisconsin, and tell voters he followed through on that pledge.

Mexico has approved the revised trade deal. Canada is expected to do so in coming months, with Prime Minister Justin Trudeau's government long insisting it would wait for U.S. approval before proceeding.

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Trump joins leaders of Canada, Mexico to sign new trade pact
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Trump joins leaders of Canada, Mexico to sign new trade pact
President Donald Trump, center, reaches out to Mexico's President Enrique Pena Nieto, left, and Canada's Prime Minister Justin Trudeau as they prepare to sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)
President Donald Trump, Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Neto, left, participate in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)
President Donald Trump, Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Neto, left, participate in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)
President Donald Trump, Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Neto, left, participate in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)
El presidente Donald Trump, el primer ministro de Canadá Justin Trudeau, a la derecha, y el presidente de México, Enrique Peña Neto, a la izquierda, participan en la ceremonia de firma de la USMCA, el viernes 30 de noviembre de 2018 en Buenos Aires, Argentina. (AP Foto / Pablo Martinez Monsivais)
President Donald Trump, center, smiles as he speaks next to Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Nieto, applauding, before they sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)
President Donald Trump shakes hands with Mexico President Enrique Pena Neto, left, as Canada's Prime Minister Justin Trudeau, right, looks on after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)
President Donald Trump, Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Neto, left, walk out after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)
Mexico's President Enrique Pena Nieto speaks as President Donald Trump looks on before they sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)
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Sen. Pat Toomey, R-Pa., was a rare voice in speaking against the agreement. “It will mean higher prices for American consumers, who will have to pay more money for a car and therefore will have less money available for any of the other things they would like to consume," Toomey said. “It will probably lead to an increase or acceleration in the shift to automation.”

The agreement aims to have more cars produced in the United States, where workers earn an average of at least $16 an hour. It also secured changes that require Mexico to change its laws to make it easier for workers to form independent unions, which should improve worker conditions and wages and reduce the incentive for U.S. companies to relocate their plants.

While the administration completed its negotiations with Canada and Mexico more than a year ago, Democrats in the House insisted on changes that they said made it more likely Mexico would follow through on its commitments. As part of those negotiations, the administration agreed to drop a provision that offered expensive biologic drugs — made from living cells — 10 years of protection from cheaper knockoff competition.

Republicans and the president have complained about how long it took to complete the negotiations, but the talks resulted in a rare mix of support for the trade deal.

The AFL-CIO, an association of trade unions, endorsed the measure, as did scores of business and farm groups. The biggest holdouts were environmental groups, which continue their opposition, saying the deal doesn’t address climate change. Indeed, they contend the agreement would contribute to rising temperatures.

“Despite the fact that it includes very good labor provisions, I am voting against USMCA because it does not address climate change, the greatest threat facing the planet," said Senate Minority Leader Chuck Schumer, D-N.Y.

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