The USMCA trade treaty proposed by President Donald Trump, which links the United States, Mexico, and Canada, will offer hundreds of thousands of jobs and boost the economy of the three countries, according to projections by specialists.
When the USMCA trade treaty was proposed on Aug. 27, 2018, the Standard & Poor’s 500 index grew 0.77 percent and when it was signed by the three countries on Nov. 30, 2018, it again grew 0.82 percent, according to the analysis presented by Fox News on Dec. 16.
Seen from another perspective, those increases in the Standard & Poor’s 500 index meant an aggregate increase of $440 billion in market capitalization for the United States, which is an indicator of the great importance of the USMCA.
The next step is for Congress to ratify the agreement already signed by the three countries, thus opening what is expected to be a powerful growth factor for the economy in 2020.
Hence the importance of Democrats now quickly supporting the passage of the treaty, as failure to do so would be affecting billions of U.S. taxpayers dollars.
According to the U.S. National Association of Manufacturers (NAM), manufacturers large and small are asking Congress to ratify the USMCA now.
“The United States-Mexico-Canada Agreement is critical for our company and our industry to compete in the international market,” said Mary M. Mann, director of government relations and international affairs for International Paper, according to NAM.
Pulp and paper exports to Canada and Mexico support an estimated 88,000 U.S. jobs. Without the USMCA, those incomes and jobs could be threatened.
So did Cindy Smith, director of agricultural relations for Gowan, a family-run agricultural input business based in Yuma, Arizona.
“Any delays or increased costs due to failure to pass the USMCA would damage our competitiveness and our ability to grow, add jobs, improve wages and invest in new products,” said Smith, quoted by NAM.
For its part, the White House projects that failing to pass the USMCA in Congress could cost the U.S. economy 176,000 jobs and $68.2 billion in real GDP, as Fox News cites.
In the analysis of Fox News authors Jon Hartley and Christos A. Makridis, if Democrats want votes in their favor they should work with Republicans.
“The least they could do is listen to their constituents who are desperate for a sustainable solution to misalignment in the terms of trade,” according to Fox News.
Thus, the ratification of the important agreement reached by the Trump administration could bring great growth opportunities for Americans and their economy.
President Donald Trump’s chief economic adviser, Larry Kudlow, told CNBC in June that the enactment of a trade pact with Mexico and Canada to replace the North American Free Trade Agreement was “more important” to the U.S. economy than an agreement with China.