On Thursday, the US Senate approved the updated North American Free Trade Agreement that introduces stricter rules on several sectors, like labor and auto industry. However, the $1.2 trillion in annual trade flows between the US, Mexico, and Canada remained mostly untouched.
The Senate passed the US-Mexico-Canada Agreement with 89
votes against 10. President Donald Trump should put his signature in order for
it to become law. The vote came a day after the US and China finally inked the
phase one trade deal.
US Treasury Secretary Steven Mnuchin commented
on Trump's efforts to improve the US ties with its trading partners:
“This historic
agreement not only modernizes and rebalances our trade relationship with Canada
and Mexico, but it promotes economic growth, creates jobs, and provides crucial
certainty for farmers, workers and manufacturers.”
Mexican President Andres Manuel Lopez Obrador said that the
American Senate’s approval was great news for the Mexican economy. He
anticipates a surge in new investments as a result.
However, in order for the current agreement to take effect
and replace NAFTA, Canada has to approve it as well.
Trump has sought to renegotiate NAFTA for years, calling it the worst trade deal the US ever made.