WASHINGTON—President Trump has signed into law the U.S.-Mexico-Canada Trade Agreement, his replacement for the North American Free Trade Agreement.
In a speech preceding the signing, Trump praised the USMCA as "the largest, fairest, most balanced trade agreement ever achieved." He said the agreement will add 1.2 percent to the nation's Gross Domestic Product.
Representatives of the U.S., Mexico and Canada signed the 2,000-plus-page agreement Dec. 10 in Mexico City, The USMCA was quickly approved by the legislatures of all three countries, including a 385-41 December vote in the U.S. House of Representatives and an 89-10 vote on Jan. 16.
Among other things, the trade deal increases the percentage of parts in vehicle assembly that must come from North America, to 75 percent from NAFTA's 62.5 percent.
Also under the USMCA, at least 40 percent of auto content must be made by workers earning at least $16 per hour to qualify for tariff exemptions.
The agreement requires Mexico to allow workers to form independent unions, as opposed to the employer-controlled unions allowed under NAFTA.