U.S., Mexico and Canada trade leaders met in Mexico on Dec. 10 to sign the revised agreement, but it still requires ratification by all three countries. Mexico has already ratified the original version of the trade agreement but will have to ratify the renegotiated version. Canada’s Parliament will likely take a vote when they resume session in late January.
As for the U.S., House Ways and Means Chairman Richard Neal (D-Massachusetts) said it's likely the deal will be voted on the House floor during the week of Dec. 16. Senate Majority Leader Mitch McConnell (R-Kentucky) told reporters the Senate will not take up the trade deal in December. He said consideration of USMCA will “happen in all likelihood right after” an impeachment trial for President Donald Trump, set to happen the week of Dec. 16. The Senate voting on the USMCA will likely occur after Congress resumes in January.
Trump touts ‘phase one’ trade deal with China
Trump announced on Twitter Dec. 13 that the administration has reached an agreement on the “phase one” deal with China. “We have agreed to a very large Phase One Deal with China,” Trump tweeted on Friday morning. “They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder.”
He continued, “The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!”
Michael Pillsbury, an adviser to the president, told reporters that a major part of the trade deal hinges on China significantly increasing their U.S. farm purchases. He added that the U.S. included a “snapback provision” to incentivize China to follow through on the promise. “Should Beijing fail to make the purchases it has agreed to, original tariff rates would be reimposed,” Pillsbury said. 
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Carrie Veselka
- Editor
- Progressive Cattle
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