Mexico first to ratify USMCA trade deal

Source:AFP Published: 2019/6/20 20:03:41

US Congress Democrats express labor, environmental concerns


Mexico on Wednesday became the first country to ratify the US-Mexico-Canada Agreement (USMCA) agreed late last year to replace the North American Free Trade Agreement (NAFTA) at the behest of US President Donald Trump.

By a vote of 114 in favor to four against, Mexico's Senate backed the deal tortuously negotiated between 2017 and 2018 after Trump repeatedly threatened to withdraw from NAFTA if he could not get a better trade agreement for the US.

Mexican President Andres Manuel Lopez Obrador had already anticipated ratification this week in the Senate, where his leftist National Regeneration Movement (MORENA) and its allies have a comfortable majority in the 128-member chamber.

There has been little parliamentary opposition in Mexico to trying to safeguard market access to the US, by far Mexico's top export destination, and the trade deal was approved with overwhelming cross-party support in the Senate.

Mexico sends around 80 percent of its exports to the US, and Trump last month vowed to impose tariffs on all Mexican goods if Lopez Obrador does not reduce the flow of US-bound illegal immigration from Central America.

Lopez Obrador says he wants to avoid conflict with Trump, but noted at the weekend that the tariff dispute showed Mexico needed to become more economically self-sufficient.

Trump congratulated Lopez Obrador on Twitter for Mexico's approval. "Time for Congress to do the same here!" he wrote.

Lopez Obrador, meanwhile, posted a video on Twitter in which he called the Senate's approval "very good news" and said it augured well for Mexico's relations with the US.

Canada, which has also fought with Trump over trade, is pressing ahead to ratify the deal. The main question mark hanging over its ratification is in the US, where Democratic lawmakers have threatened to block the process.

Earlier on Wednesday, US Trade Representative Robert Lighthizer said he believed Democrats' concerns on enforcing labor and environmental provisions in USMCA can be sorted out quickly. He spoke just hours after Democratic leader Nancy Pelosi said she still has many concerns over USMCA.



Posted in: AMERICAS

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