Senate Passage of USMCA a Win for Insurance Consumers
Today’s U.S. Senate passage of the United States-Mexico-Canada Agreement (USMCA) sets the table for President Trump to sign the bill into law. Insurance consumers in the three countries stand to benefit as a result.
No other industry is there for people through every stage of life like the life insurance industry.
Life insurers serve 90 million families in the United States, and millions more in Mexico and Canada. The North American Free Trade Agreement (NAFTA), which went into effect on January 1, 1994, enabled U.S. insurers to become market leaders in those countries.
Still, as markets and technology evolved rapidly, it became increasingly clear that NAFTA needed to be modernized. That is why the American Council of Life Insurers (ACLI) commends Congress for passing the USMCA.
ACLI was proud to add our voice to the more than 600 business groups — representing all 50 states and industries from agriculture and manufacturing to tech and tourism – that supported the passage of the USMCA.
NAFTA facilitated increased trade, improved customer choice, and prompted growth and greater cooperation among government policymakers, regulators and insurers in all three countries.
The USMCA builds on that success. The business of insurance, in which firms must be established in-market and are highly regulated locally, benefits from multilateral trade agreements to prevent unnecessary barriers to trade in services. The USMCA provides the framework that allows insurers to compete fairly and provide innovative and affordable financial protection products throughout North America.
While the USMCA is very positive overall, enforceability comes to mind as particularly key and in need of being further strengthened. But, by and large, the USMCA is an important and necessary upgrade to NAFTA.
ACLI applauds the efforts by the United States, Mexico and Canada to approve the USMCA. It updates NAFTA to reflect today’s economic practices and amplify NAFTA’s benefits. The USMCA will benefit North American insurance consumers for years to come.
