Donald Trump and the leaders of Canada and Mexico signed a revised North American trade pact.
The US-Mexico-Canada Agreement (USMCA) is meant to replace the 24-year-old North American Free Trade Agreement (Nafta), which Trump has viewed as a “disaster”.
Trump appeared with Trudeau and outgoing Mexican president Enrique Peña Nieto at the G20 summit in Buenos Aires for the formal signing ceremony.
The new agreement requires that 40% of cars eventually be made in countries that pay autoworkers at least $16 an hour – that is, the US and Canada and not Mexico – to qualify for duty-free treatment under the trade pact.
It also requires Mexico to pursue reforms of labor law to encourage independent unions.
Each country’s legislature must also approve the agreement.
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