The revised USMCA pleases both Democrats and Donald Trump

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The revised USMCA pleases both Democrats and Donald Trump
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For both Donald Trump and his Democratic foes, the revised plan counts as a win

UNION LEADERS and Democratic lawmakers were cool at first on the USMCA, a replacement for the 25-year-old North American Free Trade Agreement that was signed by American, Canadian and Mexican trade negotiators over a year ago. But on December 10th, after months of further talks, they swung behind a reworked version. Richard Trumka, the head of the AFL-CIO, America’s largest trade-union group, proclaimed a “new standard for future trade negotiations”.

But both the politics and the content of the deal have led to unexpected alliances. Supporting the USMCA lets Democrats claim that they are not obstructing Mr Trump’s agenda for the sake of it. And on trade, Mr Trump has more in common with the left wing of the Democratic Party than with his own Republicans. Many Democrats agree that previous deals made trade too free, with too few of the benefits going to American workers.

Enforcement has been beefed up. Improvements to NAFTA’s dispute-settlement system are “probably the most important thing in the whole treaty”, says Jesús Seade, Mexico’s chief negotiator. Under NAFTA, countries could block the appointment of arbiters to hear awkward disputes. According to negotiators from all three countries, this is no longer possible.

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