Share

Newhouse Statement on U.S.-Mexico-Canada Agreement

October 1, 2018
Press Release

WASHINGTON, D.C. – Rep. Dan Newhouse (R-WA) released the following statement after the United States, Mexico, and Canada announced that an agreement has been reached on the new U.S.-Mexico-Canada Agreement (USMCA). Rep. Newhouse will attend the announcement today when President Trump delivers remarks at the White House Rose Garden at 11:00 a.m. ET. WATCH LIVE HERE.

“The U.S.-Mexico-Canada Agreement is outstanding news for America’s farmers, ranchers and manufacturers,” said Rep. Newhouse. “Under this deal, Central Washington wheat farmers gain fair treatment, and dairy producers gain greater access to the Canadian market. American workers needed a level playing field, and President Trump kept his promise to renegotiate NAFTA with that goal. I applaud the work of President Trump and U.S. Trade Representative Robert Lighthizer in successfully pushing to modernize the trilateral agreement with our closest trading partners.”

AGREEMENT HIGHLIGHTS:

AGRICULTURE

  • Benefiting American Farmers, Ranchers, and Agribusiness: While agriculture has generally performed well under NAFTA, important improvements in the agreement will enable food and agriculture to trade more fairly. Key achievements include fair treatment for America’s dairy and wheat farmers. Canada will eliminate its “Class 7” program that allows low-priced dairy ingredients to undersell United States dairy products in Canada and in third country markets. Canada also will provide equal treatment when assessing the quality of imported wheat.
  • Expanded Market Access for American Food and Agricultural Products: Canada will provide important new access for the full range of United States dairy products, eggs and poultry.
  • Strengthening Agricultural Trade with Modernized Provisions: The new agreement sets unprecedented standards for agricultural biotechnology, establishes strong commitments to reduce trade-distorting policies, and enhances rules for science-based sanitary and phytosanitary measures.
  • The United State, Mexico and Canada agreed to non-discrimination and transparency commitments regarding sale and distribution, and labeling and certification provisions to avoid technical barriers to trade in wine and distilled spirits.

AMERICAN AUTO MANUFACTURING AND JOBS

  • Increasing United States and Regional Content in Automobiles and Auto Parts: Through updated automotive rules of origin, the new agreement encourages United States manufacturing and regional economic growth by requiring that 75 percent of auto content be produced in North America and that key core parts always be originating. This will incentivize billions of dollars in additional United States vehicle and auto parts production.
  • Incentivizing the Use of High-Wage Manufacturing Labor in the Automotive Sector: The new agreement uses trade rules to encourage higher manufacturing wages by requiring that 40 to 45 percent of automotive content be made by workers earning an average base wage of at least $16 per hour. This will support better jobs for United States producers and workers and incentivize additional United States vehicle and auto parts production.