Several months after leaders of the U.S., Mexico and Canada signed a new trade agreement to replace NAFTA, federal lawmakers in each of the three nations have yet to ratify the deal. Arizona 360 learned more about what's in the U.S., Mexico and Canada Agreement from Eric Martin, who covers the economy and government for Bloomberg News in Mexico City.
"The focus of the new agreement is tightening the rules for production of cars. Cars account for the majority of the U.S. trade deficit with Mexico," Martin said. "What the new agreement does in part is raise the amount of content that needs to come from within the region. So that prevents content from Asia or from Europe from being used as easily in cars produced in Mexico and sold duty free in the U.S."
Martin also discussed the possibility that a congressional vote on the deal may be years away.
"There's speculation that if this doesn't happen by the August recess it could be put on the back burner until after 2020, potentially until a second Trump administration or until there's a new president. So, it's really crunch time to see whether this agreement moves through the U.S. Congress or not," Martin said.
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