MORE INFORMATIONthe U.S. and China sealed a cease-fire in its war commercial Trump is flying the new commercial treaty with Mexico and Canada as a victory for Mexico to cede to the demands of Trump to achieve the trade agreement: the keys of a necessary agreement
Donald Trump is in a hurry to close completely the other big front commercial of the last two years. Back to Washington, after the G20 summit held Friday and Saturday in the capital of argentina, the president of the united States, known for their inclinations towards protectionist policies, launched the last mule to pull forward as soon as possible to the T-MEC, which will replace the Free Trade agreement of North America (NAFTA) of 1994.
For the pact, agreed a couple of months ago and signed in Buenos Aires by the presidents of the three participating countries —USA, Mexico (Enrique Peña Nieto) and Canada (Justin Trudeau)—, it's a done deal still needs the approval definitive of all the Congresses. And Trump want the process to not delay too much after the change of majority in the House of Representatives, the democrats, traditionally more hard with the trade agreements with other countries, now have the control.
On board the presidential plane Air Force One, Trump announced that he would ask Congress to "put an end" to TLC's "in a relatively short period of time". This process would trigger a period of six months before Washington to abandon finally the agreement: in that half year, both the House of Representatives and the Senate would have to choose between approving the T-MEC as Pashabahis a new umbrella governing commercial relations in one of the regions more interconnected and competitive on the planet, or leave his country without any type of agreement with its neighbours to the north and the south. With this movement, the tycoon republican leaves the ball on the roof of the most progressive in the House of Representatives, that would entail with all the political cost in case you decided not to give the green light to the new treaty.
The head of the democrats in Congress, Nancy Pelosi, said Friday that the agreement "still needs to be worked on", and stated that Mexico has not been gifted yet a law on the wages and working conditions. As in 1994, that point is the more thorny for democrats, who want at all costs to avoid any trace of dumping labour. However, in this almost quarter of a century of force of the FTA, many u.s. companies have made use of the instrument —that created the largest free trade areas in the world— to move part of its production to Mexico, where wages in the manufacturing sector are up to six times more low. The new agreement includes a labour chapter, more stringent than the current and promises to improve the working conditions of mexican workers, including a syndication real that today shines by its absence in many companies.
Trump said Friday that the new agreement is “much better” than the FTA, which again branded as "disastrous" for his country. Although it is true that the mexican authorities and canadian have given at key points to achieve the new agreement, the amendments do not justify the words of Trump, which have more to do with its sales policy with a real change in the balance american. Now, added the american president, “will put an end [to the NAFTA] and the Congress will have the choice between the T-MEC or the situation prior to the FTA, which worked very well.” Large companies with operations in Mexico and Canada, and the States most exporters do not think the same.