Donald Trump wanted an agreement, to show that he knows how to conclude the trade wars, while the one with China does not finish. The American Democrats too, anxious to show that they are not obsessed solely by the impeachment procedure of the president and are able to work for their constituents. Mexico and Canada even more, eager to regain stability in their trade relations with their first economic partner. Tuesday, December 10, in Mexico, the negotiators of the three countries have finally signed a free trade agreement between the United States, Mexico and Canada called USMCA (ACEUM, in French).
This text amends the agreement sealed in 2018 but the American Democrats did not want to ratify after their victory that year, in mid-term elections in November. After months of negotiations with the US Trade Representative, Robert Lighthizer, the speaker (Speaker) of the House of Representatives Nancy Pelosi gave the green light. Believing that they have had enough concessions, the California Democrat "Victory for American workers".
Mexican President Andres Manuel Lopez Obrador ("AMLO") highlighted the efforts made by his country, which had ratified the first agreement in June. " (The American Democrats) wanted guarantees, we did our share of the work ", he confided, before occupying a few hours later the role of honorary witness at the signing of the treaty amendments in the Presidential Palace in central Mexico.
Two subjects were particularly sensitive. First, the rules of origin in the automobile. Mr. Lighthizer had asked to include the concept of "fused and cast" in North America regarding steel and aluminum cars, 70% of which must come from the region. Mexico has given way, although it has seven years for steel and ten years for aluminum. This rule will be difficult to respect for Asian manufacturers based in Mexico (Kia, Nissan, Mazda …).
"Winner, winner, winner"
Then, the Mexican labor law reform, planned by the USMCA: last weekend, Mexico had rejected the presence of US inspectors on its territory to verify its application. Anxious to reduce the Mexican competitive advantage, the elected Democrats of the United States wanted to ensure the establishment of true freedom of association and the rise in hourly wages of Mexican workers in the sector.
