Just a day after a raucous and divisive impeachment vote, the U.S. House of Representatives overwhelmingly passed a bipartisan vote to approve the updated NAFTA deal. Dubbed the “USMCA,” the new trade agreement is being hailed as a win for U.S. autoworkers and farmers, boosting automotive wages and agricultural exports.
More importantly, the passage of the deal will remove a major threat to the U.S. economy. Mexico and Canada are our top two trading partners and the uncertainty around maintaining a trade union has weighed on numerous sectors of the U.S. economy.
The Senate still needs to ratify the treaty but is expected to do so early next year. One winner of note is U.S. dairy producers who will see an increase in exports to Canada, which could help shore up the troubled industry. Prices for milk futures rose on the deal’s passage in the House, with many contracts approaching contract highs.