Government report says new NAFTA would have minimal impact on economy
President TrumpDonald John TrumpHouse Dems demand Barr cancel ‘inappropriate’ press conference on Mueller report DOJ plans to release ‘lightly redacted’ version of Mueller report Thursday: WaPo Nadler accuses Barr of ‘unprecedented steps’ to ‘spin’ Mueller report MORE‘s update of the North American Free Trade Agreement (NAFTA) would provide a very modest boost to the economy, according to a report released Thursday by the U.S. International Trade Commission (ITC).
The United States-Mexico-Canada Agreement (USMCA) would increase economic growth by 0.35 percent, or $68.2 billion, and create 175,700 jobs, the government agency projected.
Wages would rise 0.27 percent, and the largest increases would be in manufacturing and mining, with the average wage climbing 0.43 percent among lower-educated workers.
U.S. trade with Canada and Mexico would increase and reduce the trade deficit with Mexico by $1.8 billion under the agreement. Exports to Mexico would get a $14.2 billion boost, compared with $12.4 billion in new imports.
The bilateral trade deficit with Canada would stay the same, with $19.1 billion in new exports countering $19.1 billion in imports.
“I’m glad to see the report recognized USMCA’s new economic benefits,” said Senate Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyTen post-Mueller questions that could turn the tables on Russia collusion investigators On The Money: Conservatives rally behind Moore for Fed | White House interviewing other candidates | Trump, Dems spar on Tax Day | Budget watchdogs bemoan ‘debt denialism’ GOP senators double down on demand for Clinton email probe documents MORE (R-Iowa), noting the trade deal’s focus on reducing nontariff barriers.
Democrats, meanwhile, said the ITC report shows the trade deal would do little to improve economic conditions for American works.
“This report confirms what has been clear since this deal was announced – Donald Trump’s NAFTA represents at best a minor update to NAFTA, which will offer only limited benefits to U.S. workers,” said Sen. Ron WydenRonald (Ron) Lee WydenHillicon Valley: Washington preps for Mueller report | Barr to hold Thursday presser | Lawmakers dive into AI ethics | FCC chair moves to block China Mobile | Dem bill targets ‘digital divide’ | Microsoft denies request for facial recognition tech Lawmakers, tech set for clash over AI Overnight Energy: Collins receives more donations from Texas oil, gas industry than from Maine residents | Interior chief left meetings off schedule | Omar controversy jeopardizes Ocasio-Cortez trip to coal mine MORE (Ore.), the top Democrat on the Finance Committee.
Democrats are pushing for tougher trade enforcement mechanisms to address labor standards. Speaker Nancy PelosiNancy Patricia D'Alesandro PelosiDOJ plans to release ‘lightly redacted’ version of Mueller report Thursday: WaPo Pelosi accuses Barr of ‘single-minded effort’ to protect Trump against Mueller report Dems attack Barr’s credibility after report of White House briefings on Mueller findings MORE (D-Calif.) said Mexico would have to reform its labor laws before she would consider bringing the trade deal to a vote in the House.