Who benefits the most from US-Mexico-Canada trade deal up for a Senate vote?

The U.S.-Mexico-Canada trade deal is one step closer toward ratification following a Senate Finance Committee vote Tuesday, and it comes with big benefits for farmers and auto factory workers.

The deal would replace the 1994 North American Free Trade Agreement, which President Trump has long railed against as being the “worst trade deal.”

The Senate Finance Committee approved the new deal in a 25-3 vote, sending it to the full Senate for approval that could come by the end of January.

Biggest benefits

The new deal gives a boost to U.S. dairy farmers who have been struggling with low milk prices by giving them greater access to the Canadian market. Under the agreement, farmers can export more products such as milk powder and infant formula. The agreement also bumps up the amount of eggs farmers can export from 1.67 million to 10 million dozen after six years.

Auto workers will see a benefit, as the new deal requires up to 40-45% of work done on cars completed by workers earning at least $16 an hour. The agreement also requires 75% of auto parts be made in North America, which will “help incentivize up to billions annually,” according to the U.S. Trade Representative.

Despite failing to mention climate change, the agreement will include a series of environmental protections. Shark finning, commercial whaling and the use of poisons and explosives in commercial fishing will be banned. The agreement also includes a commitment that each country will not weaken their environmental laws to support trade or investment.

Criticism

Democratic Sen. Sheldon Whitehouse, of Rhode Island, voted against the deal Tuesday, saying it did not go far enough to address climate change. Citing the wildfires in Australia and the melting ice caps, Whitehouse said the Earth is “sending us profound signals that we have knocked things out of whack.”

Republican Sen. Pat Toomey, of Pennsylvania, also voted against the deal, saying that it will raise the price consumers pay on cars.

“We’ll get no economic growth out of this,” he said. “And we, the Senate, and the Senate Finance Committee, are allowing ourselves to be marginalized.”

House Speaker Nancy Pelosi has previously expressed support for the deal, saying, “There is no question of course that this trade agreement is much better than NAFTA.”

This story was originally published January 7, 2020 at 2:29 PM.