When President Donald Trump has talked about the need for higher tariffs on imports of foreign goods because of a decline in American manufacturing, he has often made the claim that “90,000 plants and factories” in the U.S. closed after the North American Free Trade Agreement with Canada and Mexico took effect in 1994. But that figure is questionable, and experts say other factors, such as automation, had more to do with the large decline in U.S. manufacturing jobs than trade.

In her confirmation hearing, U.S. Trade Representative Katherine Tai stated that “trade is like any other tool in our domestic or foreign policy. It is a means to create more hope and opportunity.” With this in mind, President Biden has made clear that trade must improve wages and create higher-paying jobs for all Americans as he focuses on controlling COVID-19, restoring economic growth and employment, and expanding opportunity by investing in education, R&D, and infrastructure. In this respect, there is no more important regional trade agreement for the U.S.

The largest free trade area in the world came into existence over the weekend — and the U.S. was not even invited.

Why it matters: For the first time in living memory, the hegemon at the center of a major global free trade agreement is not the U.S.

China has stepped into Uncle Sam's shoes, and now anchors the Regional Comprehensive Economic Partnership, or RCEP, an area covering 2.2 billion people and 1/3 of all the economic activity on the planet.

A revamped North American trade deal nearing passage in Congress gives both the White House and Democrats a chance to claim victory and offers farmers and businesses clearer rules governing the vast flow of goods among the United States, Canada and Mexico.

But the pact leaves at least one surprising loser: the pharmaceutical industry, a near-invincible lobbying powerhouse in Washington.

By 10 am, Speaker Nancy Pelosi had both unveiled two articles of impeachment against President Donald Trump and announced that Democrats had reached an agreement with the president on a replacement for the North American Free Trade Agreement.

One hour after announcing articles of impeachment against President Trump, House Speaker Nancy Pelosi announced Tuesday that House Democrats had reached an agreement with the White House over Trump’s landmark USMCA trade deal.

“It is infinitely better than what was initially proposed by the administration,” Pelosi said. “It’s a victory for American workers, and it’s one that we take great pride in advancing.”

Democrats handed President Donald Trump a political win Tuesday with House Speaker Nancy Pelosi's announcement that Democrats have reached a deal with the administration on the new North American trade agreement.

The deal coincides with House Democrats unveiling two articles of impeachment against the president, and edges Trump closer to victory on a signature 2016 campaign promise with the trade deal.

Vice President Mike Pence made his latest push for the United States-Mexico-Canada Trade Agreement (USMCA) Tuesday at the Heritage Foundation, a conservative D.C.-based think tank.

A top legislative priority for the White House, the agreement was signed by all three countries on Nov. 30 of last year and has been stalled in Congress as House Speaker Nancy Pelosi has yet to put the agreement on the calendar for a vote.

“It’s time for Congress to pass the United States-Mexico-Canada Agreement,” Pence asserted to a room full of policy experts, ambassadors, and congressmen.

Democratic congressional leaders are loath to acknowledge it, but President Trump has them cornered with his threat to terminate NAFTA if his new trade deal with Mexico and Canada isn’t approved.

President Donald Trump says he’s finally going to do what he’s long threatened: tear up NAFTA.