Tuesday, June 15, 2021

Mexico ratifies new trade agreement with US and Canada

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Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com
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Mexico was the first State to ratify the new North American Free Trade Agreement, at the insistence of the US President Donald Trump to replace the 25-year-old NAFTA agreement. With 114 votes to four, the Senate voted by a clear majority on Wednesday for the USMCA agreement, with which Mexico seeks to secure market access to the United States.

Eighty percent of Mexican exports goes to the United States. Trump had threatened to quit the trade pact altogether if there were none better conditions for his country.

After months of negotiations, an agreement was reached at the end of November. The third Contracting State of Canada also promotes ratification.

NBFI

However, there is resistance in America, where the opposition Democrats have threatened to blockade because of concerns over labor law and environmental requirements.

Trump had recently threatened Mexico with punitive tariffs despite the agreement, should the neighboring country not take more vigorous action against immigration to America.

Mexico had finally agreed. The tariffs would have hit German companies such as Volkswagen, BMW and Daimler, which manufacture in Mexico.

Read also: Mexico adjusts immigration policy to US investments

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