House Democrats said Tuesday they had reached a deal with the White House on a proposed replacement for the North American Free Trade Agreement—an announcement welcomed by a wide range of business groups, but not those representing drug manufacturers.

The U.S. Mexico Canada Agreement is a key policy priority for the Trump administration. Democrats initially opposed the trade deal, but they came around after the White House agreed to several concessions supported by labor unions, according to news reports.

Business groups were also pleased a deal had been reached, largely because the agreement would end trade tensions between the three countries.

"An integrated North American supply chain is an integral component of the apparel and footwear industry," said Rick Helfenbein, CEO of the American Apparel & Footwear Association. "Further, in a time of trade uncertainty, it will provide businesses with the ability to invest confidently in the region."

The uncertainty that builds every day that a NAFTA replacement isn't passed "means our global competitors get stronger," said Gary Shapiro, CEO of the Consumer Technology Association. "And as American workers, businesses and our economy struggle under the weight of tariffs—as they have for over a year now—passage of new digital trade provisions will establish the certainty and structure they require for a much-needed boost."

One concession won by Democrats was the removal of language extending the time that medications known as "biologics" would be protected from generic competition. The change irked groups presenting the pharmaceutical industry, with Pharmaceutical Research and Manufacturers of America CEO Stephen Ubl saying the change "puts politics over patients."

"Eliminating the biologics provision in the USMCA removes vital protections for innovators while doing nothing to help U.S. patients afford their medicines or access future treatments and cures," he said.

Biotechnology Innovation Organization CEO Jim Greenwood said the deal keeps the door open for "foreign free-riding on American medical innovation."

"Today's announcement declares open season on these innovators and sends a clear message that the U.S. government will stand idly by while foreign entities attack American intellectual property, American jobs and America's global leadership in medical innovation," he said.

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