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Fact Check: Trumps NAFTA replacement already creates jobs?

He cited news from Toyota announcing that it would invest $ 749 million in five US plants and create 586 new jobs.

Trump has tweeted: "Congratulations @ Toyota! GREAT NEWS for US Auto Workers! The USMCA has already resolved the broken NAFTA deal." is uncertain. The Trade Agreement was signed by Trump and its Canadian and Mexican partners in December but it requires the approval of Congress before it can enter into force. That is, it is possible that Toyota included the deal in its decision to build more vehicles in the US plants.

The agreement must pass through both the democratically controlled House and the Republican-controlled Senate, and the legislators of both parties have criticized some of its provisions. It is likely that Congress will wait for a study on the economic impact, which will be published by the United States International Trade Commission next month, before considering ratification.

Context: As suggested, the new trade agreement is not very different from NAFTA. However, it contains provisions that put more pressure on automakers to ramp up production in the United States.

One of the most notable changes to the deal is that 75% of the parts of a vehicle need to be manufactured in North America (compared to the current 62.5% rule) in order to remain duty-free. It would also require more parts to be made by workers earning at least $ 1

6 an hour.

In a statement sent to CNN, Toyota said these new investments are part of the ongoing effort to produce vehicles where they would be sold.

"A spokesman said in an email.

Regardless of the USMCA, Trump has threatened to impose customs duties on all foreign-made vehicles and car parts." If these duties come into force, this could be for the automaker further incentive to invest more in the United States.

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