Please ensure Javascript is enabled for purposes of website accessibility
Commission: New NAFTA would deliver modest economic gains
gvw_ap_news
By Associated Press
Published 6 years ago on
April 18, 2019

Share

WASHINGTON — President Donald Trump’s new North America trade agreement would give the U.S. economy only a modest boost, an independent federal agency has found.
The International Trade Commission said Thursday that Trump’s U.S.-Mexico-Canada agreement would lift the U.S. economy by 0.35%, or $68.2 billion, and add 176,000 jobs six years after it takes effect. That’s barely a ripple in a $21 trillion-a-year economy and a job market of almost 151 million people.
The commission’s analysis is required by law and is expected to kick off a contentious congressional debate on the regional trade pact designed to replace the 25-year-old North American Free Trade Agreement.
NAFTA tore down most trade barriers between the United States, Canada and Mexico, leading to a surge in regional trade. But critics, including Trump, said the pact encouraged manufacturers to pull out of the United States, relocate to low-wage Mexico and ship products back across the border duty free.
The revised version, signed by the three countries last year but awaiting approval by each of their legislatures, is designed to encourage factories to move back to the United States. For instance, one provision says that in order for a car to quality for duty-free treatment under the agreement, 40% of its content must be produced in North American factories where workers earn an average of at least $16 an hour — that is, not Mexico.
The commission found that the new pact would modestly raise the price of U.S. cars and reduce sales. It would create 30,000 jobs in American auto parts plants but cost 1,500 jobs in factories that assemble cars.
Hours before the commission released its report, the Trump administration released more upbeat findings of its own. The Office of the U.S. Trade Representative, citing its consultations with automakers, predicted that the agreement would encourage $34 billion in investment in U.S auto plants and create 76,000 auto industry jobs over five years.
Updated at 3:07p.m.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

Iranian State TV Halts Live Broadcast After Israeli Strike

Madera County Wildfire Prompts Evacuation Warnings, Road Closures

15 hours ago

Sanger Police Seek Public’s Help to Find Missing Teen

16 hours ago

Israeli Air Power Reigns Over Iran, but Needs US for Deeper Impact

JERUSALEM – Israel’s command of Iranian air space leaves few obstacles in the way of its expanding bombardment, though it will s...

8 minutes ago

Smoke rises following an Israeli attack on the IRIB building, the country's state broadcaster, in Tehran, Iran, June 16, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
8 minutes ago

Israeli Air Power Reigns Over Iran, but Needs US for Deeper Impact

A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. (Reuters File)
12 minutes ago

Trump Says He Will Probably Extend TikTok Deadline Again

1 hour ago

Immigration Raids Add to Absence Crisis for Valley Schools

A wildfire near Raymond Road and Avenue 16 in Madera County has prompted evacuation warnings and road closures as officials urge residents to prepare to leave if threatened on Monday, June 16, 2025. (Madera County SO)
15 hours ago

Madera County Wildfire Prompts Evacuation Warnings, Road Closures

Sanger police are searching for Kaylani Thompson, 17, who went missing Saturday, June 14, 2025, after leaving her home and was last seen getting into a white sedan. (Sanger PD)
16 hours ago

Sanger Police Seek Public’s Help to Find Missing Teen

A view of the cityscape in the aftermath of Israeli strikes, in Tehran, Iran, June 16, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
16 hours ago

Trump Says Everyone Should Immediately Evacuate Tehran

17 hours ago

Inside Trump’s Extraordinary Turnaround on Immigration Raids

President Donald Trump speaks at the White House in Washington, D.C., U.S., June 12, 2025. (Reuters File)
17 hours ago

Trump Approval Steady at 42%, Support Weakens for His Immigration Policy, Reuters/Ipsos Poll Finds

Help continue the work that gets you the news that matters most.

Search

Send this to a friend