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Free trade between the U.S., Mexico and Canada has fueled the three economies to the tune of trillions of dollars and millions of jobs since the North American Free Trade Agreement (NAFTA) was ratified in 1994.聽

It has resulted in intricate supply chains, increased investment, and prompted more tourism across borders. Now, a new updated free trade deal for the modern digital age is waiting on the U.S. Congress that just returned from its summer break.聽

The new agreement to replace the dated NAFTA – the United States-Mexico-Canada Agreement (USMCA) – is designed to secure free trade and update it for the digital age.聽

For Mexico, the deal is needed to stabilize the country鈥檚 economy, trade experts said.聽

鈥淭his deal is incredibly important to Mexico,鈥� said Jonas Gamso, an assistant professor of international trade and global studies at Arizona State University’s Thunderbird School of Global Management. 鈥淭he U.S. market is huge for Mexico, in the neighborhood of 75 percent of Mexico鈥檚 exports go to the U.S.鈥�

If there was any doubt that Mexico鈥檚 new president Andr茅s Manuel L贸pez Obrador, popularly known as AMLO, was going to shy away from trade after his election, it has all but been erased, Gamso said.聽

鈥淗e seems to be all in on it because it is so important to Mexico鈥檚 economic well being,鈥� he said.聽

Mexican budget proposal to secure trade pact

Mexico has stepped up repeatedly to appease the U.S., particularly Democrats in Congress, who have stalled on voting on the USMCA as they haggle over whether Mexico will honor labor and environmental reforms in the framework.聽聽

This month, Mexico introduced a proposed 6.05-trillion-peso (US $310 billion) budget for 2020 that promises to cement its commitment.聽

It highlights increased spending on security that likely will include clamping down further on illegal migration north to America, a vow AMLO made and has followed through with to prevent new tariffs being imposed by President Donald Trump, Gamso said.聽聽

Since AMLO beefed up security forces in June, illegal migration has dropped 56 percent, Mexico Foreign Minister Marcelo Ebrard announced this month.聽

The new budget package also emphasizes spending for social services, AMLO鈥檚 campaign promise to citizens. Some of that funding likely will be targeted to enforce labor reforms in the USMCA that allow workers to unionize.

Robert Grosse, director for Latin America at Thunderbird, said there is no significant reason for AMLO to step back from that promise. Though new requirements in the USMCA to increase wages for auto workers along the border could cause some strife during the budget process.聽聽

鈥淎MLO is not likely to take on an industry that he might view as one of his bases for being elected in the first place,鈥� Grosse said. 鈥淗e certainly wouldn鈥檛 find opposition from assembly workers in the auto industry but it might turn out that that means that car companies and Mexican companies that use them would hire fewer people at higher cost. That鈥檚 the risk, the two sides of the coin.鈥�

The biggest threat: politics

Mexico was the first country to ratify the USMCA. Canada has moved to ratify the deal as well. Every step forward by Mexico and Canada means another Democrat may jump on the bandwagon for ratification, Gamso said.

There appears to be no reason for delay except politics, trade experts said.聽聽

鈥淭he challenge is that the Democrats may oppose whatever President Trump does,鈥� Grosse said.聽

White House trade officials and leading Republicans have stated that the 鈥渧otes are there鈥� to get the deal sealed.聽

On Tuesday, top Democrat Nancy Pelosi said she and her colleagues still have concerns.

鈥淏ut we hope that we鈥檙e on a path to 鈥測es.鈥� The most important issue outstanding is enforceability,鈥� Pelosi said in an interview on national television on CNBC.

The longer the wait, the more likely it won鈥檛 happen before the election, Gamso said. Democrats will not want to give Trump a victory that close to the election.

Arizona needs this deal聽

For Arizona, the deal is critical. Mexico is the state鈥檚 largest trading partner.聽聽

鈥淎merica and Arizona鈥檚 businesses are beyond ready to ratify the USMCA,鈥� Gov. Doug Ducey said at a U.S. Chamber of Commerce press conference in Washington Monday. 鈥淭here鈥檚 44 other American states that enjoy either number one or two trading relationship[s] with Mexico and Canada. So with the USMCA our country has a once in a generation opportunity to take our North American trade relationships to an entirely new level.鈥�

As Congress drags its feet, there鈥檚 no denying, an update is sorely needed, trade experts said.

Modern trade deal for a digital age

USMCA adds protections for digital trade and intellectual property, issues that did not exist 25 years ago when NAFTA took hold. More importantly, sealing the deal would bring certainty to one of the most powerful trading blocs in the world.聽聽

鈥淭he reason that NAFTA is so important to Mexico and the U.S. is because it demonstrates that Mexico rules are credible and that has enticed American industry to set up assembly of their cars and computers, and airplane parts, and textiles and clothing in Mexico because they trust that the rules aren鈥檛 going to change,鈥澛�Grosse said.