CalChamber Supports Newly Reached U.S.-Mexico-Canada Agreement Deal

The California Chamber of Commerce welcomes the December 10 indication that the Trump administration and the U.S. Congress have reached agreement to move forward on the U.S.-Mexico-Canada Agreement (USMCA). The CalChamber awaits a fast-track final approval of the USMCA by Congress in the near future.

U.S. Trade Representative Robert Lighthizer and Jared Kushner, White House senior adviser, and Canadian Deputy Prime Minister Chrystia Freeland signed the agreement yesterday in Mexico City. The agreement has been ratified by Mexico and must now be approved by the U.S. Congress and Canada.

Background

The CalChamber actively supported the creation of the North American Free Trade Agreement (NAFTA) among the United States, Canada and Mexico, comprising almost 495 million people and combined annual trade with the United States of around $1.228 trillion in 2018. In 2018, goods exported topped $563.729 billion while goods imported totaled nearly $665.008 billion.

President Donald J. Trump announced his intent to renegotiate NAFTA in May 2017. The negotiations started shortly thereafter, going through many rounds. In August 2018, the U.S. and Mexico reached a preliminary agreement, while the U.S. continued separate negotiations with Canada. In October, Canada and the U.S. came to an agreement right before a self-imposed deadline, reassuring the deal would remain trilateral. The pact was rebranded the United States-Mexico-Canada Agreement.

Benefits and Goals

CalChamber support for the USMCA, like its longstanding support for NAFTA, is based on an assessment that the agreement serves the employment, trading and environmental interests of California, the United States, Mexico and Canada, and is beneficial to the business community and society as a whole.

The objectives of the USMCA are to eliminate barriers to trade, promote conditions of fair competition, increase investment opportunities, provide adequate protection of intellectual property rights, establish effective procedures for implementing and applying the agreements and resolving disputes, and to further trilateral, regional and multilateral cooperation.

CalChamber Position

The CalChamber understands that the original NAFTA was negotiated more than 25 years ago, and, while our economy and businesses have changed considerably over that period, NAFTA has not. We agree with the premise that the United States should seek to support higher-paying jobs in the United States and to grow the U.S. economy by improving U.S. opportunities under the new USMCA.

The provisions of NAFTA with Mexico and Canada have been beneficial for U.S. industries, agricultural enterprises, farmers, ranchers, energy companies and automakers.

Since 1993, trade among the three NAFTA countries has nearly quadrupled.

Mexico and Canada are California’s largest and second largest export markets. A final approval of the new USMCA will benefit the California economy and jobs.

USMCA Coalition

Earlier this year. the CalChamber joined more than 200 companies and associations in launching the USMCA Coalition, which advocates congressional approval of the United States-Mexico-Canada Agreement.

The coalition includes a diverse group of businesses, farmers and ranchers, manufacturers, service providers, and technology companies in support of the USMCA. Join the coalition.

The USMCA Coalition continues to make the case for expeditious passage of the agreement to members of Congress, and has been working to educate employers and members of Congress about the benefits of the new deal. The effort harnesses the advocacy strength of a broad membership of companies, trade associations, and chambers of commerce, including many that operate outside of Washington, D.C.

More information about the agreement and the coalition is available at www.USMCACoalition.org.

Staff Contact: Susanne T. Stirling

Susanne T. Stirling
Susanne T. Stirling, senior vice president, international affairs, has headed CalChamber international activities for more than four decades. She is an appointee of the U.S. Secretary of Commerce to the National Export Council, and serves on the U.S. Chamber of Commerce International Policy Committee, the California International Relations Foundation, and the Chile-California Council. Originally from Denmark, she studied at the University of Copenhagen and holds a B.A. in international relations from the University of the Pacific, where she served as a regent from 2012 to 2021. She earned an M.A. from the School of International Relations at the University of Southern California. See full bio.