US Vice President Mike Pence continued to plug this week for the ratification of the United States-Mexico-Canada Agreement (USMCA), the ostensible replacement for the former North American Free Trade Agreement.
Only Mexico has so far ratified the new economic agreement. Vice President Pence trumpeted the administration’s successes before the Detroit Economic Club earlier this week, stressing the gains made – and to be made – in the auto sector, Kallanish notes.
“On the USMCA, I have to speak a word here in Michigan, because when the Congress reconvenes this September, we hope and trust that the Congress will take up this important trade agreement, and take it up quickly,” he says. “You deserve to know the USMCA levels the playing field for American workers and puts American jobs first. Under the USMCA, 75% of auto parts in duty-free cars must be made right here in North America, and 40% of them must be made by workers making what is essentially the hourly average wage here in the United States. We believe that will eliminate the historic incentive to manufacture outside the United States. It will eliminate the incentive to move jobs south of the border.”
Vice President Pence adds that the framework of the USMCA will likely be applied to future trade deals – if it is indeed ratified by the US Congress.
“It’s more than a good deal, as well. The USMCA actually may well serve as a template for all our future trade deals - whether with the EU, the UK, Japan, or even China. But we still need Congress to approve it. So while I’m here in Michigan today, let me ask you a favor. All of our friends in the Motor City and all across Michigan, and all the leaders here in the Detroit Economic Club: It’s a good time to let your voice be heard. We need your help to get this done.”