A new report from the U.S. International Trade Commission indicates that President Trump’s new trade deal will create American jobs and grow the economy.
Trump has put renegotiating trade deals with other countries at the forefront of his legislative agenda. The United States — Mexico — Canada Trade Agreement (USMCA) updates NAFTA to include new automotive rules, new protections for intellectual property rights, and modernizing agricultural trade to benefit American farmers.
According to the report, the USMCA would raise U.S. real GDP by $68.2 billion and create approximately 176,000 American jobs. The USMCA would increase U.S exports to Canada by $19.1 billion, and increase U.S. exports to Mexico by $14.2 billion. Under the new agreement, U.S. imports from Canada are projected to increase by $19.1 billion, and U.S. imports from Mexico are projected to increase by $12.4 billion. The report estimates that the USMCA would have a positive impact on all U.S. industry sectors, with the manufacturing and services sectors experiencing the most gains.
The USMCA would contribute to already strong economic growth. According to the Bureau of Labor Statistics, over 2.6 million jobs were created in 2018, and nearly 5.5 million have been created since President Trump took office. Job openings sit at 7.6 million, a record high. The unemployment rate is a near-record low of 3.8 percent, and the number of people claiming unemployment benefits is at a 50-year low. Nominal wages have grown by 3.4 percent over the last year, a 10-year high.
Thanks to Republican pro-growth policies like tax reform and deregulation, the U.S. economy is working for American workers. Swift ratification and adoption of the USMCA would continue to build on this economic success.