WASHINGTON — The Association of American Railroads is calling on Congress to quickly pass a new North American trade agreement.
On Tuesday, it was announced that House Democrats had reached an agreement with President Donald Trump to pass the United States-Mexico-Canada Agreement, the president’s replacement for the North American Free Trade Agreement.
AAR President and CEO Ian Jefferies applauds the deal and says it will help American railroads. According to AAR, international trade accounts for 42% of U.S. freight railroads’ carloads and intermodal units, and more than 35% of rail revenue is directly associated with international trade.
“As the backbone of the North American supply chain, freight railroads applaud today’s announcement, which provides much-needed certainty with our two largest trading partners,” Jefferies says. “Congress should move with haste to ratify USMCA before the end of the year and provide an economic shot in the arm to U.S. businesses. With renewed trade ties, freight railroads stand ready to deliver for rail customers throughout North America and move the goods that allow the U.S. economy to grow and compete in global markets.”
According to media reports, the House could vote on the deal next week.
Hurry, the railroads are losing domestic freight business. The UP is in free fall.