[CTC] House Democrats lay out a NAFTA wish list

[Arthur Stamoulis]

Letter attached…



INSIDE US TRADE

House Democrats lay out a NAFTA wish list 

June 13, 2017 

Ten House Democrats are calling for the elimination of the investor state dispute settlement mechanism in an updated NAFTA.

In a June 12 letter <https://insidetrade.com/sites/insidetrade.com/files/documents/jun2017/wto2017_0193.pdf> to U.S. Trade Representative Robert Lighthizer, the lawmakers request transparent collaboration with the administration and call for a “public renegotiation process.”

“Marginal adjustments around the edges of the Agreement will not suffice,” they write.

Signatories include Reps. Rosa DeLauro (CT), Peter DeFazio (OR), Marcy Kaptur (OH), Barbara Lee (CA), Daniel Lipinski (IL), Richard Nolan (MN), Mark Pocan (WI), Tim Ryan (OH), Robert Scott (VA) and Paul Tonko (NY).

In addition to calling for strengthened labor and environmental standards, the Democrats said the agreement's Chapter 11 – which outlines the ISDS mechanism – must be eliminated because it encourages offshoring.

“NAFTA's Chapter 11 makes it less risky and cheaper for U.S. firms to relocate offshore by guaranteeing privileged treatment for firms in Mexico and Canada and by providing for the enforcement of these new rights through the Investor-State Dispute Settlement (ISDS) mechanism,” the group writes.

The Democrats also called on the administration to scrap any rules that “require the U.S. to waive 'Buy American' and buy local procurement preferences.”

“Majorities of Americans want their tax dollars to be reinvested in job creation and innovation here,” they said.

The group requested that the agreement outline a “clear path” to close U.S. trade deficits and singled out manufacturing imports from Mexico and Canada, which they argue have “grown exponentially” while U.S. exports in manufacturing and services have “stalled.”

“Notably,” they continue, “this requires changes to NAFTA's agricultural terms and a focus on new rules that benefit farmers and not agribusiness trading and processing firms.”

Citing President Trump's promises as a candidate to address the issue, the lawmakers say the updated agreement “must include strict, enforceable disciplines to fight currency manipulation.”





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