Tai Says USMCA Sets Trajectory for New Generation of FTAs
The top trade officials in the U.S., Canada and Mexico gathered virtually to celebrate the one-year anniversary of USMCA, which is July 1, with Canadian and Mexican ministers emphasizing the worth of integrated supply chains and U.S. Trade Representative Katherine Tai emphasizing the elements of USMCA that protect workers in the region and around the world. Tai said at a Wilson Center program June 30, "A good next step in this increased cooperation can be on the issue of forced labor. The USMCA includes a strong obligation to prohibit the importation of goods produced with forced labor. Working together to address this critical economic and moral issue would send a powerful message to the world."
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Canadian International Trade Minister Mary Ng said that engaging the private sector will be needed to deal with forced labor.
House Ways and Means Committee ranking member Kevin Brady, R-Texas, who also spoke at the program, said that the USMCA opens new markets in Canada for dairy, wine and poultry. He did not mention that the U.S. has opened a state-to-state dispute over that dairy access, but did say that the process was broken in NAFTA, since any country could block a panel under USMCA's predecessor. He said that he's optimistic that the U.S. will work out its problems over Canadian treatment of dairy exports and Mexican treatment of agricultural biotechnology advances, and said, "our partners have issues to raise as well."
Tai said, "Working on this agreement is never going to be finished. These agreements are about relationships, and relationships are dynamic." She said USMCA has mechanisms that will help the countries collaborate and also manage "our frictions."
Brady said he's pleased that USMCA cuts red tape for businesses, including cutting costs for low-value shipments. “I think the USMCA challenges the world to embrace the future rather than a protectionist isolationist past,” he said. He also said it laid the groundwork for future trade agreements with strong bipartisan votes, which Tai also said. He said he will continue to urge the Biden administration to negotiate new agreements.
Brady said he hoped that there could be more production of medical supplies in North America, which he said is critical to the economy and health of America, and he said there's an opportunity to incorporate Brazil in regional supply chains, as well.
But increased commercial ties south of Mexico aren't just for Brazil, he said. “Are there opportunities here in our hemisphere that are due a reset or more engagement?
"I think the answer is not yes, but heck, yes. I think there is support in Congress for that as well."