For the USMCA, which will replace NAFTA, to become law, it has to be ratified by lawmakers from the U.S., Canada and Mexico by the end of this summer.

In a significant development, Canada took the first step toward ratifying a new North American trade agreement three days before U.S. Vice President Mike Pence’s visit to Ottawa to discuss passage of the treaty.

Foreign Minister Chrystia Freeland presented what is known as a “ways and means motion” to the House of Commons, which opens the way for the formal presentation of a bill.

The USMCA, as the treaty is called, will replace the 25-year-old North American Free Trade Agreement (NAFTA). USMCA has yet to be approved by legislatures from Canada, Mexico and the United States.

On May 17, the U.S. struck deals to lift tariffs on steel and aluminum imports from Canada and Mexico, thus removing a major obstacle towards legislative approval.

Pence is due to meet Canadian Prime Minister Justin Trudeau in Ottawa on Thursday.

Incidentally, the U.S. is Canada’s top trading partner and takes in 75% of its goods exports.

Hammering out a new trade deal has been a top priority for Trudeau’s Liberal government. Canada’s national election is just five months away.

Officials of the current U.S. administration have negotiated the deal, a few Democratic lawmakers have demanded provisions for stronger enforcement for USMCA’s new labor and environmental standards.

Last Friday, John Manley, a former Canadian Liberal foreign minister, stated, Canada should pass the new treaty by this summer.

“To fail to pass it is going to be a signal to the U.S. Congress that it is still open for renegotiations,” said Manley.

According to a few U.S. lawmakers, passing the treaty would become increasingly more difficult after the congressional summer recess since they would be in the middle of budget battles and increased campaigning ahead of the November 2020 U.S. presidential elections.

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