Governor Abbott Joins President Trump For USMCA Ceremonial Bill Signing In Washington D.C.

Governor Greg Abbott today joined President Donald Trump for the United States-Mexico-Canada Agreement (USMCA) ceremonial bill signing in Washington D.C. This trade agreement between the United States, Mexico and Canada modernizes the 25-year-old North American Free Trade Agreement (NAFTA), and will support mutually beneficial trade leading to freer markets, fairer trade and robust economic growth in North America. It is estimated that the USMCA will have a positive impact of $17.6 billion on Texas' annual gross product and create 164,700 new jobs in the state, according to December 2019 projections from Perryman Group. The USMCA also allows Texas increased access to trade with Mexico and Canada, the state's two largest export partners.

"Today's signing of the USMCA trade agreement is a win for the Lone Star State and all of America," said Governor Abbott. "As the number one exporter in the nation, a strong relationship with our trade partners is vital to Texas' booming economy and its unprecedented growth. Whether it be agriculture, technology, or energy industries, the USMCA will promote free enterprise and help create even more jobs in the Lone Star State. I thank the Trump administration and the Texas Congressional Delegation for their hard work and persistence to pass this monumental agreement." 

USMCA benefits to Texas include: 

• Strengthened trade relationships with top trading partners: Texas has been the number one exporter in the country for the past 17 years and relies heavily on its North American trade partners. USMCA will allow Texas increased access to trade with Mexico and Canada, the state’s first and second largest export partners, respectively. In 2018, total trade between Texas and Mexico surpassed $216 billion ($109.7 billion in exports and nearly $107 billion in imports) and trade with Canada surpassed $47 billion ($27.5 billion in exports and $20.2 billion in imports).
• Greater workforce opportunities and protections: Texas leads the nation in jobs dependent upon exports. With nearly 1 million people employed in trade with North American partners, USMCA will assist job growth in Texas. USMCA will also raise the bar for enforcement of labor laws, allowing Texas workers to benefit from higher wages and robust benefits. Innovative rules of origin will encourage more goods and materials to be manufactured in the U.S. and Texas and ensure that benefits of USMCA flow to North American workers.
• Cross-border investment opportunities: Mexican firms invest $3.4 billion into Texas and Canadian firms invest $7.2 billion into Texas annually. USMCA will allow for greater foreign direct investment from Mexican and Canadian firms through expanded collaboration and efficiencies between the international markets.
• Access for agricultural goods: According to a statement from the Texas Farm Bureau from December 20, 2019, current agricultural exports from Texas to North American partners amount to about $7.2 billion and stand to increase $2.2 billion under USMCA. In addition, USMCA is the first free trade agreement for the U.S. and Texas that addresses cooperation, information sharing and other trade rules related to biotechnology and gene editing.
• Energy industry growth: Texas is the top energy-producing state in the nation and is the leader in both natural gas and crude oil production. In 2018, Texas exported a combined $22.8 billion in petrol and coal products and $10.8 billion in oil and gas to Canada and Mexico. USMCA opens up opportunities for Texas to create new energy partnerships and increase exports in energy, particularly natural gas, which accounts for a majority of Mexico’s electricity production and overall energy use. USMCA streamlines the regulatory process for U.S. LNG exports to Mexico and Canada, and provides new flexibilities in rules of origin certification requirements for oil and gas moving between the U.S., Mexico, and Canada. It also fixes a longstanding issue in allowing hydrocarbons transported through pipelines to qualify as originating, provided that any diluent, regardless of origin, does not constitute more than 40% of the volume of the good.
• Small business benefits: small businesses account for nearly 93% of all Texas exporters. New customs and trade rules will make it easier for small businesses to tap into foreign markets and participate in cross-border trade. Moreover, the USMCA eliminates local presence requirements for cross-border service providers, benefiting small businesses by removing the unnecessary burden of opening a foreign office as a condition for doing business.

On Wednesday, January 29, 2020, the President signed into law

H.R. 5430, the "United States-Mexico-Canada Agreement Implementation Act," which implements the United States-Mexico-Canada (USMCA) Agreement.

President Donald J. Trump's United States-Mexico-Canada Agreement Delivers a Historic Win for American Workers

PRESIDENT DONALD J. TRUMP’S UNITED STATES-MEXICO-CANADA AGREEMENT DELIVERS A HISTORIC WIN FOR AMERICAN WORKERS

“The USMCA is the largest, most significant, modern, and balanced trade agreement in history. All of our countries will benefit greatly.” – President Donald J. Trump

DELIVERING ON HIS PROMISE: President Donald J. Trump is replacing the outdated North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA).

• Today, President Trump is signing his historic USMCA deal, making good on his promise to deliver fairer and more reciprocal trade for the American people.
• USMCA will replace the terrible NAFTA agreement that resulted in the loss of millions of American jobs and devastated communities across our county.
• The deal marks a tremendous victory for American workers, farmers, manufacturers, and businesses alike.

STANDING UP FOR AMERICAN WORKERS: USMCA will deliver more jobs and better labor protections that benefit American workers, while fostering more growth for American businesses.

• While NAFTA was a disaster for American workers, USMCA will deliver new jobs and better protections for hardworking Americans across the country.
• USMCA has the potential to create nearly 600,000 jobs and generate up to $235 billion in economic activity.
• This deal includes the strongest, most advanced, and most comprehensive labor chapter of any American trade agreement in history.
• Workers in all sectors of the economy are expected to benefit from this landmark agreement.
• USMCA is the first United States trade agreement to ever include a chapter supporting small and medium sized businesses.

SUPPORTING AMERICAN FARMERS: USMCA includes tremendous breakthroughs for American agriculture.

• USMCA is a monumental win for American farmers and ranchers, improving access to Canadian and Mexican markets to export their goods.
• As a result of President Trump’s efforts to secure a better deal for our farmers, American agricultural exports are expected to increase by $2.2 billion under USMCA.
• Under the agreement, Canada has agreed to expand market access for American dairy, egg, and poultry producers.
  • The agreement is expected to grow annual dairy exports by nearly $315 million.
• American wheat growers will have access to a more level playing field.
  • Thanks to this deal, Canada will finally give fair treatment to American-grown wheat.

DRIVING NEW GROWTH FOR THE AUTO INDUSTRY: USMCA will provide a massive boost to American manufacturers, particularly our vital auto industry.

• USMCA will achieve fairer, more reciprocal trade that supports high-paying American manufacturing jobs and grows the economy.
• USMCA includes innovative provisions to incentivize new investments in the American auto industry and support high-paying jobs for American auto workers.
  • New wage and rules of origin requirements included in the agreement will put American autoworkers on a level playing field with workers from other countries.
• USMCA is expected to create up to 76,000 new auto jobs, spur $34 billion in new investment in the auto industry, and add $23 billion in auto parts purchases annually.

MODERNIZING REGIONAL TRADE: USMCA will bring our trade relationship with Canada and Mexico into the 21st century.

• USMCA is a modern trade deal that will completely transform our trade relationship with Canada and Mexico and end the outdated NAFTA.
• USMCA contains new protections for American intellectual property, ensuring strong, effective protection for American innovators and creators.  
• Included in USMCA is a first-of-its-kind chapter on digital trade, which the decades-old NAFTA was never updated to address.
  • The digital trade provisions included in this agreement will foster economic growth and innovation for years to come.
• USMCA includes first-of-its-kind provisions to prohibit unfair currency practices and reinforce exchange rate stability.  
• The agreement includes the strongest environmental standards of any trade agreement in our history.  
  • These standards are fully enforceable and will help prevent companies from moving out of the United States—and taking jobs with them—to avoid environmental rules.