[CTC] Seade & Lighthizer to meet today on NAFTA

Wed Dec 4 08:57:06 PST 2019

Politico Morning Trade

— U.S. Trade Representative Robert Lighthizer is expected to meet with Mexican Undersecretary for North America Jesús Seade today as they look to strike a deal on USMCA changes amid pushback from Mexico's government and private sector.

WHAT WILL MEXICO DO ON USMCA? All eyes are on the Winder Building, where Lighthizer and Seade are scheduled to meet today to discuss the USMCA as both sides race to wrap up a compromise on changes to the deal. 

Pressed for time: People close to the talks widely agree that this week is crucial if there's any chance of Congress passing the USMCA this year. But it's midweek already and Mexico has not yet agreed <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb2ab4b318fd3534e0b1a603fb175b5517ecdcf264793a6f32c8c00d8d8388f54226ef795fea8e96bf9> to the proposed changes to the deal that Democrats want — meaning Congress will have at most a dozen legislative days to pass the deal (in a crowded month that includes passing a funding bill to prevent another government shutdown and impeachment efforts).

Rejected by AMLO: Mexican President Andrés Manuel López Obrador on Tuesday shut down the U.S.'s idea to include provisions in the USMCA that would allow the U.S. to conduct inspections in Mexico to ensure companies are fully implementing the country's labor reform law. López Obrador added that Mexican senators should be allowed to weigh in on the USMCA changes since they need to ratify any tweaks to the deal. 

Dropping biologics: The Trump administration has proposed removing protections for biologic drugs in the USMCA, a move that would be a major concession to Democrats, Bloomberg reports <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb2f97015a7b81589649eeeb2e028301c67e52056c81c8df4ed82dd8044d91e0275aa0974ec8737d9e7>. The USMCA includes a provision providing 10 years of data protection for biologic medicines, which House Democrats have said would limit their ability to reduce protections for biologics and lower drug prices.

...

UNION WANTS TECH LANGUAGE OUT OF USMCA: UNITE HERE, a union that represents 300,000 members in the hotel, warehouse and other service industries, urged Pelosi on Tuesday to ensure that the final USMCA does not include language from Section 230 of the Communications Decency Act — the tech industry's legal liability shield. 

In a letter to Pelosi obtained by Morning Trade  <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb29dbf8a10b760dd6224a13515d5ac0c6c225747660a15a2082d2024012fef136a323d0858aba1ac57>, the union said Section 230, which shields websites from lawsuits over user-generated content, has "absolutely no place in a trade agreement." 

"Our union will strongly oppose [USMCA] passage" if Section 230 is included, the group wrote.

Shared concern: Lawmakers on both sides of the aisle, including Sen. Ted Cruz  <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb2dffd5d12825fbea51e246e50f1768d3c16900507ac74ef63ff56a6dff6b9042ce604ea53b6832978>(R-Texas), have warned the Trump administration against including online liability language in the USMCA, saying the move could complicate their efforts to amend Section 230. 

Lighthizer stayed away: In his negotiations with Democrats, Lighthizer has largely steered clear of any topic outside of the four core issues he and Pelosi agreed to address: enforcement, labor and environmental standards, and prescription drug pricing. House Energy and Commerce leaders called on Lighthizer to testify on the matter at an October hearing, but the USTR chief declined <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb23554abb51106bfd11276cfd97c02f380eb6fd3e0a7e84c52d336e1f8add1bea8696f0c3e33b89a83>. 

THE DAIRY DOZEN HITS THE HILL FOR USMCA: A dozen execs from the largest North American dairy companies will drop by the Capitol today to prod lawmakers to quickly approve the new NAFTA. They'll also meet with Trump administration officials, according to the International Dairy Foods Association, which organized the fly-in.

Dairy producers are among the biggest beneficiaries under the USMCA, which would end Canada's "class 7" milk pricing scheme within six months and expand U.S. access to the Canadian dairy market by nearly 3.6 percent. Canada and Mexico last year imported about $1.5 billion in American milk products, more than 25 percent of all U.S. dairy exports, per IDFA.

More mobilizing <http://go.politicoemail.com/?qs=1ae9490f7d2b6fb2b28e0341a09aee27b4b2ceee18e8110329303a4de07def3466cce37bf0b991c3eb92cb8c26373843> : Some 2,200 farmers sent a letter to House and Senate leaders on Tuesday with the same pro-USMCA message, writing that agriculture needs a win "now more than ever" amid a multiyear slump in the farm economy, trade wars that hurt market access and an increase in bankruptcies.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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