Former President Donald Trump is seeking to renegotiate the USMCA trade agreement with Mexico and Canada, which he signed onto in 2018 to replace NAFTA. Trump has described the USMCA as a modern and balanced trade deal with advanced protections for workers, but he now believes it can be improved upon. He plans to invoke a provision in the agreement that allows for a review after six years and wants to focus on improving the car industry within the deal.
Vice President Kamala Harris, who voted against the USMCA in 2020 as a senator, has also expressed interest in using the review process to address concerns she had with the agreement. Harris felt the USMCA was not sufficient to protect American workers and was concerned about the environmental provisions not going far enough to address climate change. Both Trump and Harris are looking to make improvements to the USMCA through the renegotiation process.
The USMCA largely updated NAFTA, which was 25 years old at the time of its replacement. One of the significant changes in the USMCA was a new incentive to build cars and trucks in North America, requiring 75% of vehicle parts to be made in one of the three countries to remain tariff-free when crossing borders. There was also a requirement for more vehicle parts to be made by workers earning a minimum of $16 an hour, along with benefits for the technology sector and strong labor and environmental protections.
Trump aims to make the USMCA a better deal, particularly focusing on the car industry, as he believes there is room for improvement in the current agreement. He plans to formally notify Mexico and Canada of his intention to invoke the renegotiation provision in the USMCA and hopes to enhance the deal for American workers and manufacturers. Both Trump and Harris are looking to utilize the review process of the USMCA to address their respective concerns and further strengthen the protections for workers and the environment within the trade agreement.
