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Labor unions win, drug companies lose in new trade deal

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The big winners and losers from the Trump administration’s deal with Democrats on its NAFTA replacement, the U.S.-Mexico-Canada Agreement, are not necessarily the traditional ones

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U.S. dairy and poultry producers — who were left out of the original agreement because of Canada’s protection of those sectors — have gained some small additional access north of the border. There were other small tweaks: Canada won’t be able to put up barriers to trade for alcoholic beverages — a big gain for regions like California's wine country.Auto companies with factories in Canada and Mexico will have to meet more rigorous rules if they want to avoid paying tariffs on cars and trucks entering the United States.

 

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Pharmaceutical companies, which usually see gains from trade deals, got their big promise ripped out of the final agreement. But it gives labor groups the first trade deal it could support in nearly two decades because of strong enforcement of labor rules

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These companies have low labor costs that can turn into a stock payday for youInvestors should focus on 'stocks with low labor costs, which are relatively insulated from wage pressures.'
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