[CTC] Trump promises 'big changes' or withdrawal from NAFTA, calls TPA 'ridiculous'

[Arthur Stamoulis]

Inside US Trade

Trump promises 'big changes' or withdrawal from NAFTA, calls TPA 'ridiculous'
President Trump on Tuesday promised “big changes” in a renegotiation of the North American Free Trade Agreement -- or threatened to otherwise get rid of the deal -- and blasted the requirements and time lines laid out in the Trade Promotion Authority law as “horrendous” and “ridiculous.”
“The fact is NAFTA has been a disaster for the United States, a complete and total disaster,” Trump said on April 18. “And we're gonna make some very big changes or we are going to get rid of NAFTA once and for all, [it] cannot continue like this, believe me.”
Trump's remarks in Kenosha, WI, were followed by him signing an executive order aimed at a “systematic review” of Buy American, Hire American laws <https://mail.teamster.org/owa/UrlBlockedError.aspx> and an assessment of waivers to those laws granted to trading partners.
“With this action we are sending a powerful signal to the world: We are going to defend our workers, protect our jobs and finally put America first,” he said. “Together we are going to do everything in our power to make sure that more products are stamped with those wonderful words 'made in the USA.'”
The Trump administration has begun consulting with the congressional committees of jurisdiction over trade on what its negotiating objectives for NAFTA talks would be, and a draft NAFTA notice <https://mail.teamster.org/owa/UrlBlockedError.aspx>sent to Congress on March 28 was received by some with a sigh of relief while others faulted it for being what they called a “TPP lite” approach.
Under TPA, the administration is required to consult with the House Ways & Means and Senate Finance committees, as well as both the House Advisory Group on Negotiations and its Senate counterpart before it can formally notify Congress of its intent to enter into trade negotiations.
So far the Trump team has only met with the House side, and several members of the Senate Finance Committee believe that NAFTA consultations cannot move forward before Trump's USTR pick, Robert Lighthizer, has been confirmed. White House spokesman Sean Spicer last week reiterated that the formal consultation and notification process on NAFTA has to wait until Lighthizer is in place <https://mail.teamster.org/owa/UrlBlockedError.aspx>.
Trump, during his speech on April 18, blasted TPA and the requirements and time lines it lays out, charging they have created roadblocks for his team, which intended to start talks with Mexico “immediately.”
“We have all sorts of rules and regulations that are horrendous,” he said. “Like we wanted to start to negotiate with Mexico immediately and we have these provisions where you have to wait long periods of time. You have to notify Congress and after you notify Congress you have to get certified and then you can't speak to them for 100 days. The whole thing is ridiculous.”
The timeframe between formally starting trade talks with a country or countries and notifying Congress -- as laid out in TPA Section 105(a)(1)(A) -- is “at least 90 calendar days.”
In a nod to the Wisconsin congressional delegation -- which has joined the U.S. dairy industry in itsrepeated call for action <https://mail.teamster.org/owa/UrlBlockedError.aspx> on what it sees as Canada's violation of its trade obligations -- Trump pledged to protect the state's dairy farmers.
“I've been reading about it, I've been talking about it for a long time and that demands really immediately fair trade with all of our trading partners, and that includes Canada,” he said. “Because in Canada some very unfair things have happened to our dairy farmers and others. It's another typical one-sided deal against the United States and it's not gonna be happening for long.”
Trump said his team will start working on the issue “immediately, in fact starting today,” but did not give specifics.
Dairy groups and lawmakers have asked both the Obama administration and Trump's team to bring the issue “to the attention of the WTO” and in a letter last week urged Trump to make opening dairy market access an “early stage priority” in NAFTA talks with Canada.
The National Milk Producers Federation, in a statement following Trump's remarks, praised him for speaking out against Canada's dairy pricing policies.
“We have repeatedly stressed that trade must be fair and that all countries should be held accountable when they break the rules. Canada’s repeated disregard for its dairy trade commitments to the United States has left American dairy farmers enduring the severe and unfair consequences,” NMPF president and CEO Jim Mulhern said.
“America’s dairy farmers will continue to work with the Trump Administration, Speaker Paul Ryan and other congressional leaders, Wisconsin Gov. Scott Walker, as well as elected officials across the country to resolve this issue as soon as possible.
The president in his speech ripped into the World Trade Organization -- calling it “another one of our disasters” -- and claimed China's accession to the Geneva-based institution has resulted in 70,000 factories moving overseas since 2001.
Trump, during the campaign and in the early weeks of his presidency, repeatedly pledged to get tough on China and made labeling the country a currency manipulator one of his early priorities.
Shortly before the Treasury Department released its semi-annual currency report last week <https://mail.teamster.org/owa/UrlBlockedError.aspx> Trump reversed his stance, saying “they aren't currency manipulators.”
Congressional Democrats immediately criticized the president for his failure to follow through on his threats toward Beijing and instead offering them “a better trade deal” in return for their cooperation on North Korea.
“Why would I call China a currency manipulator when they are working with us on the North Korean problem? We will see what happens!” he tweeted on April 16.
Trump, who Tuesday promised “very big things” on trade “with other countries over the coming months,” also said his tax reform package will be unveiled “very soon."
“We're on time if we get that healthcare approval, we're in very good shape on tax reform,” Trump said. “We have the concept of the plan, we're gonna be announcing it very soon... but healthcare, we have to get the healthcare taken care of. As soon as healthcare is taken care of we're gonna march very quickly, you're gonna watch. We're gonna surprise you,” he added. -- Jenny Leonard (jleonard at iwpnews.com <mailto:jleonard at iwpnews.com>)
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