The biggest trade deal of all time, the pact encompasses more than $1.3 trillion of commerce. While winning enough votes to pass in the Republican-led Senate was anticlimactic after months of modifications by the Democratically-controlled House, it delivers on Trump’s 2016 campaign promise to overhaul the Clinton-era North American Free Trade Agreement that he called a “disaster.”

The vote was 89 senators in favor, with 10 opposed.

A day earlier, the president and a Chinese official signed an initial trade accord between their countries, cooling tensions in a nearly two-year trade war.

“Adding together USMCA and the China deal, that’s over $2 trillion of trade,” Commerce Secretary Wilbur Ross told FOX Business’ Maria Bartiromo on Thursday. “That’s an enormous number.”

THE 10 SENATORS WHO VOTED AGAINST USMCA

Senate Majority Leader Mitch McConnell, R-Ky., with Sen. Joni Ernst, R-Iowa, and other senator. (AP Photo/Jose Luis Magana)

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The USMCA, which has already been ratified by Mexico but not by Canada, requires 75 percent of automobile components be manufactured in the United States, Canada and Mexico in order to avoid tariffs. By 2023, some 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour.

US, CHINA SIGN HISTORIC PHASE ONE TRADE DEAL

The pact is expected to create 80,000 new jobs tied to the auto industry and bring in up to $30 billion of new investment in the sector. The USMCA will also provide new access to American wheat, poultry and eggs, among other things.

“This is a major achievement for President Trump and a very big win for the American people,” said Sen. Charles Grassley, chairman of the finance committee. “I look forward to signing this bill and sending it to the president’s desk.”

When it’s all said and done, the trade pact could boost U.S. gross domestic product by up to 1.2 percentage points and create as many as 589,000 jobs, according to the International Trade Commission.

Senate Minority Leader Sen. Chuck Schumer of N.Y. voted no. (AP Photo/Susan Walsh)

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Coupled with the 0.5 percentage-point boost expected from Wednesday’s passage of the phase one trade deal with China, U.S. gross domestic product may come close to the 4 percent growth that Trump suggested was possible during his 2016 presidential campaign.

Trump’s economy has topped that mark once already. U.S. GDP growth hit 4.2 percent in the second quarter of 2018, receiving a tailwind from the passage of the Tax Cuts and Jobs Act, which lowered the top corporate tax rate from 35 percent to 21 percent and cut taxes for many Americans. The U.S. economy grew at a 2.1 percent pace in the third quarter of 2019, the most recent period for which figures were available.

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“We have what is really the absolute gold standard on digital trade and financial services, stuff that has never been done before,” U.S. Trade Representative Robert Lighthizer told FOX Business’ Maria Bartiromo in December, adding that the USMCA will be the “template” for new trade agreements going forward.

Source: https://www.foxbusiness.com/markets/usmca-thumbs-up-hands-trump-victory

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Trade negotiators from the U.S., Mexico, and Canada have reached an agreement that makes changes to the enforcement of the United States-Mexico-Canada Agreement, multiple sources have told FOX Business.

A final deal could come together in the next 24 hours, according to sources, paving the way for ratification by all three countries. U.S. stocks were little changed on the developments.

House Democrats and Speaker Nancy Pelosi expressed concerns over enforcement and the need to make sure Mexico pays workers in auto plants an average of $16 an hour. Mexico has rejected such an enforcement mechanism but has said it’s willing to allow a “neutral” third party to accompany U.S. and Mexican regulators. There is also a process in case Mexico becomes noncompliant.

APPLE, BIG TECH FACE KEY TARIFF DEADLINE

On Sunday, Mexico’s top trade negotiator, Jesus Seade, told Mexican lawmakers that U.S. Trade Representative Robert Lighthizer wanted to change the definition of what constitutes North American steel and aluminum.

Jesus Seade, Mexican Undersecretary for North America. (AP Photo/Patrick Semansky)

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Mexico, which imports all of its aluminum, is not OK with changes to its definition but would be open to tighter rules for steel after five years.

The USMCA, which overhauls the Clinton-era North American Free Trade Agreement, commonly known as NAFTA, requires 75 percent of automobile components be manufactured in the United States, Canada, and Mexico in order to avoid tariffs, and that 40 to 45 percent of automobile parts be made by workers who earn at least $16 an hour by 2023.

President Trump signed USMCA, commonly referred to as the “new NAFTA,” on Nov. 30, 2018, but Pelosi has yet to put the trade agreement on the House floor due to the Democrats’ enforcement concerns. Mexico ratified the original trade deal in June and Canadian Prime Minister Justin Trudeau has said he will bring the modified agreement up for a vote once it passes the U.S. House.

U.S. Trade Representative Robert E. Lighthizer, right, and Chairman Richard Neal, D-Mass. (Photo By Tom Williams/CQ Roll Call)

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The delay has drawn the wrath of both the Trump administration and Republicans, who say not getting the deal signed before Congress adjourns for the year on Dec. 20 could put it in jeopardy, with 2020 being an election year.

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Last month, Commerce Secretary Wilbur Ross said USMCA is “much better” on key issues that any trade deal in U.S. history while noting its delay has “cost the economy billions of dollars.”

FOX Business’ Maria Bartiromo was first to report the deal would come together this year.

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