The United States International Trade Commission (ITC), an independent analyst, has reported its finding that the new trade deal between the U.S., Mexico, and Canada (USMCA) will have a positive effect on the economy and the employment levels. In a report they released recently, the international trade commission explores the impact the new trade deal would have over the trade balance, employment levels and the economy in general.
The New Trade deal, which was approved late last year, came to replace the North American Free Trade Agreement (NAFTA) and will need approval by the member's respective parliaments to take effect. The deal is the outcome of the United States new international trade approach and is expected to be approved this summer, despite the Democrats hesitation.
The 379-page survey divulged that the new agreement would increase the U.S. Gross Domestic Product by $68.2 billion, an increase of 0.35 percent while creating 176,000 new job positions. U.S. exports to Mexico and Canada would increase 6.7 percent and 5.9 percent respectively while import levels would rise 3.8 and 4.8 percent respectively.
The manufacturing sector would be the main beneficiary of what the United States trade representative Robert Lighthizer calls a "big win for America’s economy.” It would have the largest gains in economic growth, exports, employment, and wage levels while the services sector would have this privilege but in absolute terms.
The Office of the U.S. Trade Representative claims in a similar survey regarding the auto sector that the new deal will boost the manufacturing levels in the Automobile sector. It would boost parts purchases, employment, and investments since it would encourage automobile producers to move their supply chains to the United States.
The trade deal aims to maintain a free trade zone between the members, lifting trade barriers and providing tariff-free access to the local markets.