WASHINGTON, Jan. 16 (Reuters) – The US Senate on Thursday approved a renewal of the North American Free Trade Agreement, which includes stricter rules on labor and automotive content but leaves annual trade flows between it almost unchanged. country, Mexico and Canada for 1.2 trillion dollars.
The legislation for the treaty between the neighbors (known as TMEC), was approved by 89 votes against 10, and sent the measure to President Donald Trump to promulgate it.
The House of Representatives, where the Democrats have the majority, passed the legislation on December 19 after insisting on changes to improve the application of the new labor rights.
Mexican President Andrés Manuel López Obrador said the new trade agreement will increase confidence and attract new investments to the country and said he hopes its ratification will not be “a problem” in Canada.
Canada must approve the agreement before it can enter into force and replace NAFTA. Trump blamed that pact for the loss of thousands of jobs in US factories to Mexico, where wages are lower.
The Parliament of Canada will meet again on January 27, so it is not clear when a vote will be taken. The TMEC is expected to have little resistance in that country, as conservatives have said they will support the agreement negotiated by the government of Prime Minister Justin Trudeau.
The US Senate vote came one day after Trump signed a Phase 1 trade agreement with China.
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