About 350 companies, trade associations and local manufacturing groups and chambers of commerce are urging Congress to ratify the United States-Mexico-Canada Agreement "as soon as possible this autumn." The letter, led by the National Association of Manufacturers and signed by giants like Ford, GM, Fiat Chrysler, Caterpillar, IBM, GE, Honeywell, Bayer and Bristol-Myers Squibb, was sent Oct. 15. It said that ratification "is essential to promoting certainty and growth for manufacturing businesses." Volvo North America and Mahindra Automotive America signed the letter, but BMW and Mercedes -- whose supply chains would likely have to change to meet stricter rules of origin -- did not. The letter referred to trade facilitation -- though not explicitly higher de minimis levels in Canada and Mexico, in saying that the USMCA will eliminate red tape at the border, and make "it easier for small and medium-sized businesses to sell into these critical markets."
The conventional wisdom in Washington is that a House ratification vote for the new NAFTA can be held before Thanksgiving, according to Dan Ujczo, chairman of Dickinson Wright's cross-border law practice. Ujczo, whose firm works with auto manufacturers and who follows the politics of North American trade closely, said when his clients did fly-ins, Republicans, trade associations, and Democrats outside the Progressive Caucus all said that. But Ujczo doesn't think that's true.
In an opinion piece published on CNN.com, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and the panel's top Democrat, Sen. Ron Wyden, D-Ore., said the U.S. needs allies in addressing "the problems that are eroding the [World Trade Organization]'s credibility and effectiveness. These are problems that, if left unresolved, will endanger the WTO's future relevance." They said the fact that China still gets special treatment as a developing country is a big problem, and should be changed. Countries ignore transparency requirements. And, they said, the appellate body has strayed from its mission. But, they said, there are reasons to hope. "Negotiations are underway to curtail the fish subsidies that have long promoted overfishing," as well as e-commerce negotiations. "If concluded, these agreements would demonstrate that the WTO can still serve as the institution it was intended to be."
House Ways and Means Committee Chairman Richard Neal, D-Mass., at the end of a short trip to Mexico aimed at assessing that country's “ability to follow through on promised reforms” issued a statement that contained a not-too-veiled warning to the Mexican government that is eager for U.S. Congress to ratify the new NAFTA. “Our meeting with President López Obrador shed further light on the Mexican government’s desire and intentions to carry out its labor justice reform, but the United States needs to see those assurances put into action,” the statement said.
The Congressional Research Service released a report Oct. 3 on the U.S.-Japan trade agreement, detailing the scope of the two sides’ initial agreement and potential topics of future talks. The report also explains the increased U.S. market access for agriculture exports and issues Congress may consider in the coming weeks -- in light of the Trump administration's "decision to pursue a limited scope trade agreement with Japan in stages," while also considering tariff actions under Section 232 -- such as which industry sectors the U.S. trade representative should prioritize in future talks and what role, if any, Congress should have in the negotiations.
House Ways and Means Committee Chairman Richard Neal, D-Mass., is leading a delegation on a two-day trip to Mexico that began Oct. 7 to talk to Mexican government officials and local workers. The Democrat working group is struggling with the Mexican Labor Department budget for the coming fiscal year (see 1909270050 and 1909260038). Neal is accompanied by Rep. Bill Pascrell, D-N.J., who has said the new NAFTA is "not near" to being acceptable (see 1909180036). He's also accompanied by Reps. Dan Kildee, D-Mich., and Jimmy Panetta, D-Calif. The sole other member of the working group in the delegation is Rep. Jimmy Gomez, D-Calif.
Many Republicans in Congress have been accusing House Speaker Nancy Pelosi of dawdling on ratifying the new NAFTA, and White House trade adviser Peter Navarro said that if it doesn't come to the floor of the House by the end of October, "I don't think we're gonna get it."
House Democrats and the Trump administration are “on a path to yes” to a bill for ratifying the U.S.-Mexico-Canada Agreement on free trade, House Speaker Nancy Pelosi, D-Calif., told reporters Oct. 2. House Ways and Means Committee Chairman Richard Neal, D-Mass., leads a USMCA working group that recently sent the Office of the U.S. Trade Representative a “counteroffer to what the administration has proposed,” Pelosi said. “When we can arrive at a place where not only do we have our issues addressed, but that we have enforceability that will make it real for America’s families and farmers, then we can go down that path.” President Donald Trump says he wants USMCA “to go forward, and we are awaiting the language on enforceability” from USTR, Pelosi said. She’s “hopeful” that House Democrats and USTR will reach agreement on USMCA enforceability, “and I’m hopeful that it will be soon,” she said. “We have a good working relationship” with USTR, she said. “Believe me, the quiet you hear is progress.”
Even as the U.S. Chamber of Commerce gives a nudge to House members by advertising for the U.S.-Mexico-Canada Agreement in 12 districts, a top official is expressing confidence that the negotiations are on track. Neil Bradley, the chief policy officer, told reporters Oct. 1, "Our conversations with Democrats and Republicans lead us to believe we are close." He added, "We’ve kind of set a deadline we believe that USMCA should be passed before Thanksgiving. We picked that based off where we thought the progress was in the negotiations."
Mexico did not live up to its promise to open its market to U.S.-grown potatoes, says Rep. Scott Tipton, R-Colo., who announced Sept. 27 that he's asked Agriculture Secretary Sonny Perdue to do something about it. Tipton's letter dated Sept. 25 mentions that the House is negotiating with the administration on the ratification of the NAFTA rewrite, but does not say he will tie his vote to the potato issue.