Seventy-six percent of business professionals in Mexico expect their own companies to trade more internationally over the next five years once the United States-Mexico-Canada Agreement (USMCA) is ratified, according to a new survey.
Some 77 percent of Mexican respondents say there will be stronger inward trade and investment and 70 percent expect the economy will be benefit because of the free trade deal, while 45 percent of Canadians and 55 percent of Americans think the USMCA will benefit the economy within two years.
Between August and September, 1,500 business professionals, including vice presidents, directors and analysts, from the three USMCA countries completed the online survey conducted by Netherlands-based TMF Group, a global business consultancy.
Sixty-one percent of all respondents expect their companies to trade more internationally over the next five years following the deal and 57 percent of respondents expect their national economies to see benefits within two years of the agreement.
Mexico became the first legislature to approve the deal in June. The USMCA needs to be approved by the U.S. House of Representatives, while Canada will likely approve the agreement after its general election Oct. 21.
“October is going to be the hunt for USMCA. To me, that’s the most important thing for the global economy, for this hemisphere and for America,” Peter Navarro, White House director for trade and manufacturing policy, told FOX Business during an interview, Forbes reports.
“If we were to pass the USMCA, it’s good for farmers and manufacturers. It’s good for all 50 states. It’s hundreds of thousands of new jobs. It’s about a point of growth on the GDP. That's what I’m looking for," Navarro said.
Some 68 percent of respondents expect all three governments will ratify the new trade deal. Mexican respondents are the most hopeful, with 88 percent of respondents saying all countries will approve the deal.
The manufacturing and recycling industries claim slowdowns due to the tariff war and trade war with China. Some 47 percent of U.S. business owners expect their company will trade more with Mexico and 63 percent of Mexican business owners expect to trade more with the U.S. because of the deal, the survey shows.
All respondents expect more international trade in the manufacturing and automotive sectors especially.
In a recent interview, House Speaker Nancy Pelosi told CNBC the Democrats are “making progress” on the deal, while U.S. Vice President Mike Pence believes the trade deal will pass this year and will not only lead to increased investments in the U.S., but help the country reach a trade deal with China, Reuters reports.