In an 89-10 bipartisan vote on Jan. 16, the U.S. Senate approved the U.S.-Mexico-Canada Agreement (USMCA), which is expected to promote economic growth, create jobs and provide economic security for farmers, workers and manufacturers. The agreement includes tougher rules on labor and automotive products but leaves $1.2 trillion in annual U.S.-Mexico-Canada trade flows largely unchanged. The measure was then sent to President Donald Trump for him to sign into law.
The Senate vote came a day after Trump signed a long-awaited Phase 1 trade deal with China. Buoyed by the two trade deals, the U.S. S&P 500 stock index hit the 3,300 mark on Jan. 16 for the first time.
Canada still needs to approve the deal before it can take effect and replace the North American Free Trade Agreement. Canada’s Parliament does not return to session until Jan. 27, so the scheduling of a vote remains unclear. Approval of the USMCA is likely. Find out more about the new agreement here.