It’s a victory for President Donald Trump, who campaigned on a promise to replace or scrap the North American Free Trade Agreement.
House Speaker Nancy Pelosi (D-Calif.) said on Twitter it was “infinitely better for American workers than what was originally proposed by the Trump Administration.”
President Trump called it “the best and most important trade deal ever made by the USA. Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support, and added: “Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!”
Distilled Spirits Council of the U.S. applauded signing the agreement to move forward with the U.S.-Mexico-Canada Agreement (USMCA). The signing follows an agreement reached earlier yesterday between the Trump Administration and Democratic congressional leadership.
National Association of Beverage Importers President Robert Tobiassen said NABI “is pleased to see the success of compromise come together with the movement forward of the USMCA demonstrating that countries and political leaders in the Executive Branch and Legislative Branch can come together.
“Trade agreements are always better than trade wars,” Tobiassen said, adding NABI continues to urge the U.S. and the EU to move forward quickly on negotiations to settle the Airbus WTO dispute and hopefully find a resolution to the Digital Service Tax (DST) dispute through negotiations among the members of the Organization for Economic Cooperation and Development. Common agreement best enhances trade and the economies of all countries rather than tariffs that harm workers, farmers, and companies–all just trying to do what they do best to serve consumers.”
The U.S. Chamber of Commerce said it welcomed the ‘handshake deal,” and was optimistic it opened the door for final approval of USMCA on a bipartisan basis, “which will especially benefit American farmers, manufacturers, and small businesses.”
“The USMCA reaffirms tariff-free trade with two of our largest and most important export markets,” said Chris Swonger, DISCUS president/CEO.
“Since tariffs were eliminated under NAFTA in 1995, U.S. spirits exports to Canada grew by nearly 1,700% and to Mexico approximately 1,500%. We believe the USMCA can build upon the incredible growth in U.S spirits exports under NAFTA to further increase American spirits exports supporting new, good-paying American manufacturing jobs.”
In addition to preserving duty-free trade in spirits, the USMCA preserves recognition for “Bourbon” and “Tennessee Whiskey,” reaffirms commitments concerning the internal sale and distribution of distilled spirits; and establishes new best practices regarding labeling and certifications for beverage alcohol, which will help to facilitate trade in distilled spirits among the three countries.
Additionally, the United States secured Mexico’s agreement to take steps to provide distinctive product recognition for “American Rye Whiskey,” a fast-growing category of American Whiskey.
“The prompt introduction and passage of legislation to implement USMCA will provide certainty to U.S. producers and importers and create new momentum for further discussions with the EU, China and Turkey to secure the swift removal of retaliatory tariffs on American spirits exports and U.S. tariffs on certain EU spirits,” said Swonger.
In 2018, U.S. spirits exports to Canada were valued at more than $234 million; of this, 21% is accounted for by American Whiskeys ($49.6 million). Exports to Mexico in 2018 were valued at $61 million; of this, 32% is accounted for by American Whiskeys ($19.3 million). In 2018, Canada ranked as the top export destination for U.S. spirits exports and Mexico ranked as the ninth largest.
Beer Institute and Wine Institute declined to comment.
USMCA still requires passage by the legislatures of all three countries.
The agreement was reached on the same day House Democrats released articles of impeachment against President Trump.