Trump: New trade deal with Canada, Mexico to boost US growth

Trump: New trade deal with Canada, Mexico to boost US growth
President Donald Trump speaks during a campaign rally at the Wildwoods Convention Center Oceanfront, Tuesday, Jan. 28, 2020, in Wildwood, N.J. (Source: AP Photo/ Evan Vucci)

(AP) – President Donald Trump has signed into law a major rewrite of the rules of trade with Canada and Mexico.

Trump says the new United States-Mexico-Canada Agreement (USMCA) replaces what he calls the “nightmare” of a Clinton-area agreement that governed trade among the three countries.

Trump made renegotiating the North American Free Trade Agreement (NAFTA) a priority during his 2016 campaign.

Trump says that agreement encouraged factories to leave the United States and relocate south of the border to take advantage of low-wage Mexican labor.

He says the new deal with Canada and Mexico will keep jobs, wealth and growth in America.

Experts say the impact will be modest, given that Canada and Mexico already represent the top two export markets for U.S. goods.

But the pact Trump signed Wednesday, along with a “phase one” agreement with China, dials down trade tensions that contributed to slowing economic growth globally.

Trump has been eager to show off a big policy win during his impeachment trial by signing the new trade agreement into law.

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