WTAS: The USMCA’s Positive Economic Report

Author: Andy Koenig

WTAS: The USMCA’s Positive Economic Report

Trade Works for America continues its work to win support for the USMCA and advocate for its passage in Congress. The United States International Trade Commission (ITC), an independent federal agency that investigates matters related to trade, recently released its economic impact report on the U.S.-Mexico-Canada Agreement (USMCA), showing that the agreement will have a positive effect on the U.S. economy.

ICYMI, Trade Works for America co-chairs Phil Cox and former Senator Heidi Heitkamp (D-ND), released the following statement after the release of the report:

“The ITC report is further proof that the USMCA is a win for the American worker, from almond growers in California to auto workers in Michigan. Pro-growth provisions such as keeping jobs in the U.S., raising wages for hardworking Americans, and opening new markets in Mexico and Canada will enable the U.S. economy to continue to gain strength. With a positive economic analysis in-hand, we urge the administration to expeditiously send implementing legislation to Congress to bring the USMCA into force this summer.”

Since the release of the report last week, we’ve seen a number of positive statements on the report’s findings. Below, see what they are saying in support of the USMCA in light of the economic report’s findings:

“Access to the Canadian and Mexican markets is incredibly important to our agriculture producers. The USMCA delivers this access while also modernizing our trade policies with these two nations and dealing with unfair trade practices, like the downgrading of U.S. wheat. We welcome the ITC’s study, which helps make the case for this agreement. With this vital step completed, we will continue working with the administration to secure the agreement’s approval in both the Senate and the House.”

“Without a trade treaty with Mexico in place, the dairy industry would be hard pressed to maintain and expand these sales, as our competitors in Europe are expected to implement a lucrative new trade arrangement with Mexico by next year. Moreover, without USMCA we lose out on the new rules this deal puts in place such as key reforms to Canada’s dairy system. Congress must pass USMCA to shore up our market in Mexico and harness the gains made in other areas through USMCA.”

  • Tom Vilsack, Former Secretary of Agriculture, and President and CEO of the U.S. Dairy Export Council, Indiana Ag Connection

“The release of the ITC report is an essential step towards Congressional consideration of the USMCA. This agreement includes new, high-standard digital trade provisions that would modernize North American trade by allowing for free, unobstructed cross-border data flows while also providing critical protections for digital technologies and small and large companies across industries. As the ITC report shows, these important provisions would create a strong and positive impact throughout the U.S. economy. We hope today’s report jumpstarts a healthy debate in the U.S. Congress and paves the way for successful passage of this landmark agreement.”

“Business Roundtable appreciates the work of the U.S. International Trade Commission, and its report on the United States-Mexico-Canada Agreement marks a key step under Trade Promotion Authority to advance Congressional consideration of implementing legislation. This comprehensive analysis shows that all broad industry sectors across the U.S. economy will benefit from USMCA. Business Roundtable will continue to work with Congress and the Administration to pass implementing legislation for USMCA this year to preserve and strengthen the $1.4 trillion in trade and over 12 million American jobs that depend on trade with Canada and Mexico.”

  • Tom Linebarger, Chairman, Business Roundtable Trade & International Committee, Business Roundtable

“The release of the ITC report is an important step in moving USMCA toward Congressional action. ITC reports typically measure the economic impact of new trade agreements and focus on market access. USMCA is different – it’s an update to the North American Free Trade Agreement (NAFTA) – which already eliminated most tariffs on exports of U.S. food and agriculture products. So, the ITC report released today doesn’t fully capture the economic benefits of trade with Canada and Mexico, nor the improvements to trade rules in USMCA that benefit agriculture. USMCA secures and builds upon this important partnership, which is why ratifying USMCA is so important for agriculture.”

“This report makes clear that the implementation of USMCA would substantially benefit the broader U.S. economy, boosting GDP by $68 billion and expanding the U.S. workforce by close to 180,000 jobs. TIA members strongly support the passage of the USMCA and we believe this report helps make the case for Congress to approve the deal. As the USITC points out, new digital trade provisions represent one of the most commercially significant elements of the trade agreement. In particular, new protections for cross-border data flows will not only help the technology sector, but will also benefit a wide variety of traditional U.S. industries, ranging from agriculture to manufacturing.”

“The release of the USITC report is an important step in the congressional approval process of USMCA, which represents a new standard for digital trade agreements. This report underlines that the digital trade provisions in USMCA mean jobs and opportunities in every state. Digital trade supports more than 1.4 million U.S. jobs and enables more than $440 billion in American exports. The digital sector represented the largest trade surplus of any industry last year, at more than $172 billion. USMCA includes first-of-its-kind digital rules of the road that are critical to America’s future economic success. Internet Association supports Congress taking swift action to pass USMCA.”