USMCA can bring $100B of direct investment into US: Larry Kudlow
National Economic Council Director Larry Kudlow breaks down how the USMCA will be a boon to the U.S. economy.
White House economic adviser Larry Kudlow said Thursday the “fundamental nature” of the U.S.-Mexico-Canada trade agreement (USMCA) is very pro-growth.
“Canada and Mexico are so important, our total trade with those two countries is twice what our total trade is with China, for example,” he told FOX Business’ Maria Bartiromo. “And China may be a sexier global story, but for the American economy -- various estimates -- half a point of additional GDP per year, maybe 180,000 jobs per year and maybe a $100 billion of direct investment.”
In an earlier interview with Bartiromo, Vice President Mike Pence said the agreement would pass if it was brought to the floor of the House and the Senate.
“It so much comes down to Speaker Nancy Pelosi, who I believe has been dealing with our administration in good faith on this issue,” said Pence.
House Democrats are seeking tougher enforcement mechanisms related to the USMCA’s rules for labor and the environment.
Kudlow said U.S. Trade Representative Robert Lighthizer is looking to negotiate a deal that includes raising domestic content for manufacturers with higher wages, opening up farm and dairy areas with Canada, intellectual property rights and copyright protections, financial services, currency stability and digital services.
“That's a powerful deal. The sooner we get it passed the sooner it's going to act positively on the economy,” he said, adding that “the job implications are terrific.”
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USMCA calls for a larger portion of autos to be made in the U.S. with higher wages for auto workers.
Mexico, in June, became the first country to ratify the trade deal.
Trump, in May, removed steel and aluminum tariffs on Canada and Mexico.
FOX Business’ Ann Schmidt contributed to this report.