Wilbur Ross: USMCA, US-China phase one deal will equate to $2T in trade
'Very hard to imagine a recession occurring in the face of these two trade deals'
U.S. Commerce Secretary Wilbur Ross discusses the passing of USMCA and how the deal will progress in the next week.
The U.S.-Mexico-Canada Agreement (USMCA) along with the recently signed phase one portion of the U.S.-China trade deal will equate to $2 trillion in trade, Commerce Secretary Wilbur Ross said Thursday.
Ross also told FOX Business’ Maria Bartiromo that China's commitment to purchase an additional $200 billion of U.S. products over the next two years will add about a half a percentage point of GDP growth.
“Very hard to imagine a recession occurring in the face of these two trade deals,” he said.
President Trump and China Vice Premier Liu He made the landmark China trade agreement official on Wednesday when they signed the phase one deal during a ceremony in Washington.
Trump touted the deal in multiple tweets on Thursday.
"One of the greatest trade deals ever made! Also good for China and our long term relationship," Trump wrote on Twitter. "250 Billion Dollars will be coming back to our Country, and we are now in a great position for a Phase Two start. There has never been anything like this in U.S. history! USMCA NEXT!"
An hour later, he wrote: "The farmers are really happy with the new China Trade Deal and the soon to be signed deal with Mexico and Canada, but I hope the thing they will most remember is the fact that I was able to take massive incoming Tariff money and use it to help them get through the tough times!"
Meanwhile, five Senate committees are expected to join the Senate Finance Committee in approving the revamped $1.2 trillion North American trade deal, before all 100 senators vote as one body. Sen. Joni Ernst, R-Iowa, told Bartiromo on Thursday that the Senate will likely approve the USMCA at 11 a.m. ET.
Sen. Joni Ernst, (R-Iowa), tells FOX Business' Maria Bartiromo that the USMCA will pass the Senate at 11 AM ET on Thursday and will most likely be signed by President Trump in the following week.
Once the Senate passes the USMCA, it would head to Trump’s desk to be signed, the last step before it begins to be implemented. The House voted 385 to 41 to approve it in December. Sen. James Lankford, R-Okla., told Bartiromo that it would hit Trump's desk at noon after it passes the Senate.
Sen. James Lankford, (R-Okla.), discusses the layers of the USMCA and the next steps of the U.S.-China trade deal including human rights in China.
Ross said the USMCA and phase one “solidifies” the U.S. base and gives it a stronger position for negotiating trade deals in the future.
FOX Business’ Paul Connor contributed to this story.