Fill me in:
Supporters of the U.S.-Mexico-Canada Agreement (USMCA) are eager to secure congressional approval of the agreement as soon as possible, and the business community is working on multiple fronts to build support in the House and Senate.
The USMCA will preserve and modernize U.S. trade ties with Canada and Mexico, which are by far the largest U.S. export markets.
Why does it matter?
Trade with Canada and Mexico supports 12 million American jobs, and 49 U.S. states count Mexico or Canada as one of their top three merchandise export markets.
Exports to Canada and Mexico support two million manufacturing jobs, according to the National Association of Manufacturers. Manufacturing supply chains knit all three countries together, making the region more competitive in the world economy.
North American trade is also critical to agriculture. Nearly one-third of U.S. agricultural exports go to Canada and Mexico.
Unlike when NAFTA went into effect over two decades ago, digital trade and intellectual property are now key drivers of sustained economic growth. The USMCA creates best-in-class rules to foster growth in the digital economy. It also secures stronger protections for intellectual property and includes strong enforcement tools to guard against counterfeiting and piracy.
Numbers to know:
$1.4 trillion. Trade between the U.S. and Canada and Mexico reached $1.4 trillion in 2018, amounting to $3.8 billion daily.
120,000. Canada and Mexico are the top two export destinations for U.S. small and medium-sized enterprises, more than 120,000 of which sell their goods and services to our North American neighbors.
$39 billion. U.S. agricultural exports to Canada and Mexico quadrupled from $8.9 billion in 1993 to $39 billion in 2017.
“The U.S. Chamber of Commerce has thrown its support behind the USMCA, which is critical to maintaining strong economic growth in the U.S.” – U.S. Chamber CEO Tom Donohue (read his column)