WASHINGTON D.C.-The Senate Finance Committee passes the United States-Mexico-Canada Agreement (USMCA). According to MSNBC, the agreement is intended as an overhaul to the 1994 North American Free Trade Agreement.
While the resolution focuses primarily on sectors like the auto industry, dairy market, and digital trade, organizations in the apparel and textile industries have voiced support for USMCA in recent months. Groups like the American Apparel & Footwear Association(AAFA) stress that such an agreement helps strengthen supply chains that cross borders between the U.S., Mexico, and Canada.
“The passage of USMCA is a positive step for the apparel and footwear industry, and one that will strengthen our North American supply chains that support hundreds of thousands of American jobs,” states Rick Helfenbein, former president and CEO of the AAFA.
The AAFA’s board of directors features constituents from garment and supply companies such as HanesBrands, American & Efird, Under Armour, and PVH Corp.
While the U.S. Senate has approved the deal, there are still other steps before it would take full effect. MSNBC reports that Mexico has ratified the agreement, while Canada’s response may take until later this month.
The agreement comes as the U.S. continues a bumpy ride with tariff and trade agreements worldwide. As of Jan. 10, the South China Morning Post estimates that the ongoing tariff spat between the U.S. and China has cost U.S. companies $46 billion.