[CTC] Statements/TPs on new NAFTA deal (round 1)

Tue Dec 10 10:40:06 PST 2019

Hi everyone:

Just got back from the Seattle WTO Anniversary events.  Anything happen while I was gone?  

The Citizens Trade Campaign coalition is still working on a consensus position regarding the new USMCA.  A couple points I feel confident offering now are that:

A year ago, the Trump administration offered a weak, worse-than-the-original NAFTA proposal that was wholly unacceptable.  It was rigged for Big Pharma in order to lock in high medicine prices, and it failed to make the changes needed to stop outsourcing, raise wages, protect worker rights and safeguard the environment.  The resolve of Congressional Democrats, organized labor, civil society groups and countless individual in demanding better forced trade negotiators from all three countries to make real improvements on some of those issues.  As a result of progressive groups’ work, the deal on offer today is now better than both the original NAFTA and the NAFTA 2.0 deal signed last year. 

The new pact's potential to make improvements in people’s lives over the existing NAFTA is why many of our partners now support it.  That said, the shortcomings of this latest deal are many and it is still a far cry from the type of transformative trade policy that’s required to finally put the needs of working people and the planet ahead of corporate profits.  The entire progressive coalition that has been working on this issue stands committed to continue working shoulder-to-shoulder to demand better policies in the future.  

Below are the press statements, factsheets and letters on the deal that allied groups and others have sent me thus far (although some may still be missing in my inbox).  I’m certain many others will follow.

Machinists
Sierra Club / LCV / NRDC
Ways & Means Democrats
AFL-CIO
Democracy for America
Association for Affordable Medicine
Senator Ron Wyden

In solidarity,

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

Click To View Documents: Machinists Union Opposes USMCA 12102019.pdf (579KB) <https://urldefense.proofpoint.com/v2/url?u=http-3A__t.congressweb.com_a_-3FOYMPACQEERWTQVU&d=DwMCAw&c=L93KkjKsAC98uTvC4KvQDdTDRzAeWDDRmG6S3YXllH0&r=ppAgK8w4ooUEAsZyGlsCHJq8zAT42ydPD4nu55JGYn0&m=fFWoS19I9NV7QNhAV1-02FU5k3hd4KFqvWx4wPBCHf4&s=V2sct9ljpmzZRz1JJpMcZZ5SKFG7aEVjWmncQ9mMY-g&e=>; 

FOR IMMEDIATE RELEASE

Machinists Union Opposes USMCA <https://urldefense.proofpoint.com/v2/url?u=http-3A__t.congressweb.com_l_-3FOYMPACQEERFCEBH&d=DwMCAw&c=L93KkjKsAC98uTvC4KvQDdTDRzAeWDDRmG6S3YXllH0&r=ppAgK8w4ooUEAsZyGlsCHJq8zAT42ydPD4nu55JGYn0&m=fFWoS19I9NV7QNhAV1-02FU5k3hd4KFqvWx4wPBCHf4&s=9NOuwhmnpvaS2toi9FiXMKRbwwYDSc29KwFBW-TScVA&e=>

WASHINGTON, Dec. 10, 2019 – Robert Martinez Jr., International President of the International Association of Machinists and Aerospace Workers (IAM), released the following statement on recent developments regarding the United States-Mexico-Canada Trade Agreement (USMCA).

 “The IAM understands that a deal has been reached concerning the USMCA, also known as NAFTA 2.0. As we have made clear from the very beginning of this process, any acceptable deal must effectively address the continued outsourcing of hundreds of thousands of jobs to Mexico.

 “Unfortunately, we are not aware of provisions in the newly negotiated agreement that effectively address this matter, especially when it comes to aerospace and other manufacturing sectors. We also remain troubled over other areas of the agreement that fall short of our repeated recommendations, such as those concerning stronger labor standards, enforcement and rules of origin. Our ability to comment in detail on this agreement is impaired because in the rush to consider such a proposal, we have not even been given the opportunity to review the full agreement in writing.

 “U.S. workers have been waiting over 25 years for a responsible trade deal that puts their interests ahead of corporations who are fleeing our shores. They are still waiting. The IAM will oppose NAFTA 2.0.”

 The IAM represents 600,000 active and retired members in the North American aerospace, defense, airline, manufacturing, transportation, woodworking, the federal sector and other industries. Visit goIAM.org <https://urldefense.proofpoint.com/v2/url?u=http-3A__t.congressweb.com_l_-3FOYMPACQEERBJLRT&d=DwMCAw&c=L93KkjKsAC98uTvC4KvQDdTDRzAeWDDRmG6S3YXllH0&r=ppAgK8w4ooUEAsZyGlsCHJq8zAT42ydPD4nu55JGYn0&m=fFWoS19I9NV7QNhAV1-02FU5k3hd4KFqvWx4wPBCHf4&s=3evaYGsVMUMgXiAcsRjeNJeaAd8K4fMPd1B0FkUTd3w&e=> for more information.

===

	SIERRA CLUB  LCV  NRDC			
December 9, 2019
Dear Representative,

On behalf of our organizations’ over 9 million members and supporters, we strongly urge you to oppose a renegotiated
North American Free Trade Agreement (NAFTA) that fails to meet the baseline standards for environmental and
climate protection that the environmental community has consistently called for.

Correcting NAFTA’s environmental failures and addressing climate change in modern trade agreements is a top
priority for our organizations. For over 25 years, NAFTA has contributed to climate change, toxic pollution, economic
insecurity, and social inequity. We will vigorously oppose any deal that would perpetuate NAFTA’s track record of
helping corporations dump pollution, outsource jobs, push fossil fuel dependency, and undermine hard-fought
environmental protections.

Before, during, and after the Trump administration’s renegotiation of NAFTA, we and other leading environmental
organizations repeatedly named specific changes to curb NAFTA’s environmental damage. The administration ignored
nearly all of our concerns. The deal that the Trump administration produced last year – the United States-Mexico-
Canada Agreement (USMCA) – would encourage further outsourcing of pollution and jobs, offer handouts to
notorious corporate polluters, and prolong Trump’s polluting legacy for years. The deal not only fails to mention,
acknowledge, or address the climate crisis, but would actually contribute to it.

Since this summer, a team of Democratic members of Congress has worked to try to eliminate these and other
fundamental problems by negotiating meaningful changes to the Trump administration’s deal. We have actively
supported this effort with detailed recommendations to achieve the following essential environmental priorities:				

●  Binding climate standards, backed by 110 members of Congress, to curb outsourcing of climate pollution and
jobs and to ensure the U.S. and its trading partners fulfill commitments to the Paris Climate Agreement				

●  Binding clean air, water, and land standards to halt the dumping of pollution in Mexico

●  Obligations to fulfill commitments under an array of key multilateral environmental agreements

●  A new, independent and binding enforcement system to stop environmental violations

●  Removal of corporate polluter handouts that support tar sands oil and fracked gas				

●  Elimination of broad rights for corporate polluters to sue Mexico over environmental policies in tribunals			

●  Elimination of rules that would help corporate polluters weaken and delay our environmental regulations

If these baseline environmental criteria are met, a new deal would truly help to curb NAFTA’s environmental damage.
However, if a final deal fails to reflect these minimum environmental changes, it would perpetuate NAFTA’s legacy of
exacerbating pollution and the climate crisis. The greatest environmental challenge of the 21st Century – climate
change – cannot be ignored by modern trade agreements. We cannot afford to lock ourselves into another multi-decade
trade deal that is on the wrong side of our historic fight to tackle climate change and toxic pollution.

To protect the health of people and our planet, we urge you to oppose any deal that fails to correct the fundamental
environmental failures of the Trump administration’s USMCA

Sincerely,

Michael Brune
Executive Director
Sierra Club			

Gene Karpinski

President

League of Conservation Voters

Mitch Bernard

Interim President

Natural Resources Defense Council

===

Improvements to the USMCA
Democrats Secure Wins For The People in the New North American Free Trade Agreement

After months of negotiations with the U.S. Trade Representative (USTR), House Democrats achieved transformative changes to the new North American Free Trade Agreement (NAFTA) that will bolster America’s economy, support workers, protect the environment, and improve access to affordable prescription drugs. While the Trump Administration’s original Agreement fell short of Democrats’ high standards, the revised version will serve as a model for future U.S. trade agreements.

Democrats secured critical improvements in the following areas:

ENFORCEMENT

Stronger Rules: House Democrats closed enforcement loopholes and streamlined the dispute settlement system to ensure that our trading partners live up to their commitments:

Removed language allowing a responding party to block the formation of a dispute settlement panel.
For the first time in a trade agreement, created rules of evidence – rules that will help the United States successfully litigate labor, environmental, and other fact-intensive disputes.

WORKERS

Stronger Rules: The labor rules in U.S. trade agreements have proven difficult, if not impossible, to enforce. House Democrats made key changes to strengthen the rules:

Removed language making it difficult to prove that our trading partners are failing to live up to commitments to protect workers from violence.
Created a presumption that a labor violation affects trade and investment and will require the other government to prove otherwise.
Removed language in the Forced Labor provision that had made it effectively unenforceable.

Robust Monitoring: House Democrats demanded new mechanisms and resources to ensure that the U.S. Government effectively monitors compliance with the agreement’s labor obligations specific to Mexico:

Created an interagency committee that will monitor Mexico’s labor reform implementation and compliance with labor obligations.
Created ongoing reporting requirements to Congress.
Established key benchmarks for Mexico’s labor reform implementation process. Failure to comply with these benchmarks will lead to enforcement action under the agreement.
Established Labor Attachés that will be based in Mexico and will provide on-the-ground information about Mexico’s labor practices.

Rapid-Response Enhanced Labor Enforcement: State-to-state dispute settlement by itself has not been effective to ensure that U.S. trading partners live up to their labor commitments. In recognition of this concern, House Democrats established a new and enhanced labor-specific enforcement mechanism that: 

Takes immediate effect upon entry into force of the agreement;
Provides for facility-based enforcement of labor obligations in the agreement within a rapid timeframe;
Covers all manufactured goods and all services traded between the United States and Mexico;
Requires verification of compliance by independent labor experts; and
Leads to penalties on goods and services that are not produced in compliance with the freedom of association and collective bargaining obligations.

ENVIRONMENT

Stronger Rules: House Democrats insisted on the inclusion of strong, high-standard rules that are clear and enforceable:

Created a presumption that an environmental violation affects trade and investment and will require the other government to prove otherwise.
Added commitment that all Parties will adopt, implement, and maintain seven multilateral environment agreements (MEAs), and additional language that allows all Parties to agree to add to the list of covered MEAs. 
Restored a provision in the old NAFTA that prioritizes MEA commitments when implementing MEA and trade agreement obligations.
Removed language in order to allow the Montreal Protocol to be covered in this agreement.

Robust Monitoring: House Democrats urged the creation of new mechanisms and the allocation of additional resources to monitor whether environmental protections are being applied:

Created an interagency committee that will: o Conduct an assessment of the current environment landscape of Canada and Mexico; 
Monitor implementation of the environment obligations and recommend enforcement actions in connection to the new NAFTA; and
Provide a platform for better coordination, utilization, and funding of U.S. Government efforts to strengthen environment practices amongst NAFTA Parties.

Established environment-focused attachés in Mexico City that will regularly monitor Mexico’s environment laws, regulations, and practices.

New Accountability: To hold partners and actors accountable to the agreement, House Democrats insisted on creating and enhancing relevant mechanisms, resources, and commitments:

A new customs verification mechanism to ensure that only legally harvested and taken flora and fauna are traded through Mexico;
A new authorization of the North American Development Bank and funding for EPA grants under the Border Water Infrastructure Program to address pollution on the U.S.-Mexico border; and
Additional funds to the Trade Enforcement Trust Fund to be used for environment-focused enforcement efforts.

PRESCRIPTION DRUGS

Preservation of Congress’s Power to Legislate: House Democrats removed provisions that contribute to high prescription drug prices to preserve Congress’s ability to change U.S. law to improve access to affordable medicines:
Removed provision requiring the Parties to provide at least 10 years of exclusivity for biologics, some of the most expensive drugs on the market.
Removed provision requiring the Parties to confirm that patents would be available for new uses of known products. This provision would have locked in the practice of “patent evergreening,” in which pharmaceutical companies obtain hundreds of patents related to a product to block generic competition and price reductions.
Removed provision requiring three additional years of exclusivity for clinical information submitted in connection with new uses of previously-approved pharmaceutical products. This is another way that pharmaceutical companies delay competition and access to affordable medicines.

Ensuring Fair Competition: House Democrats’ revisions focus on maintaining the balance between competition and incentives for innovation that is in U.S. law but was not fully reflected in the United States Mexico Trade Agreement (USMCA):
Revised regulatory review provision to clarify the circumstances in which generic and biosimilar companies may use a patented invention so that they can obtain marketing approval on day one of patent expiration. 
Revised data protection provision to incorporate limitations in U.S. law that foster generic competition.

Reflecting May 10th Principles: House Democrats pushed for key principles to improve access to medicines that were included in previous U.S. trade agreements with Peru, Panama, and Colombia:
Revised patent linkage provision to remove the “hard linkage” of regulatory approval and patent status. Under an annex to the agreement, Mexico must ensure that all interested parties receive notice and an opportunity to be heard. The revision also includes language that permits incentives for generic competition and improves transparency.
Revised patent term adjustment provision to provide non-exhaustive examples of limitations on the adjustment of patent terms for regulatory delays.

A NEW STANDARD FOR U.S. TRADE AGREEMENTS

Taken in whole, these substantial changes House Democrats secured are a true transformation of the original United States Mexico Canada Agreement. The USMCA that the Trump Administration proposed was not enforceable and failed to make critical updates to the existing NAFTA. Democrats rejected that weak agreement and negotiated extensive improvements that make this new version of the USMCA a good deal for workers, patients, and our environment. This revised agreement is a win for the U.S. economy and American families, and it will serve as the new standard for all future U.S. trade deals.

===

https://aflcio.org/pressreleases/afl-cio-endorses-usmca-after-successfully-negotiating-improvements
AFL-CIO Endorses USMCA After Successfully Negotiating Improvements

December 10, 2019
 <https://www.facebook.com/sharer.php?u=https://aflcio.org/pressreleases/afl-cio-endorses-usmca-after-successfully-negotiating-improvements>  <https://twitter.com/intent/tweet?url=https://aflcio.org/pressreleases/afl-cio-endorses-usmca-after-successfully-negotiating-improvements&text=AFL-CIO%20Endorses%20USMCA%20After%20Successfully%20Negotiating%20Improvements>  <mailto:?&subject=AFL-CIO%20Endorses%20USMCA%20After%20Successfully%20Negotiating%20Improvements&body=https://aflcio.org/pressreleases/afl-cio-endorses-usmca-after-successfully-negotiating-improvements>
Labor Federation President Richard Trumka on the United States-Mexico-Canada Agreement (USMCA), provided final text accurately reflects changes:  

Make no mistake, we demanded a trade deal that benefits workers and fought every single day to negotiate that deal; and now we have secured an agreement that working people can proudly support. 

I am grateful to House Speaker Nancy Pelosi and her allies on the USMCA working group, along with Senate champions like Sherrod Brown and Ron Wyden, for standing strong with us throughout this process as we demanded a truly enforceable agreement. I also commend Ambassador Robert Lighthizer for being a straight shooter and an honest broker as we worked toward a resolution. 

Working people are responsible for a deal that is a vast improvement over both the original NAFTA and the flawed proposal brought forward in 2017. For the first time, there truly will be enforceable labor standards—including a process that allows for the inspections of factories and facilities that are not living up to their obligations.

The USMCA also eliminates special carve outs for corporations like the giveaway to Big Pharma in the administration’s initial proposal and loopholes designed to make it harder to prosecute labor violations.

The USMCA is far from perfect. It alone is not a solution for outsourcing, inequality or climate change. Successfully tackling these issues requires a full-court press of economic policies that empower workers, including the repeal of tax cuts which reward companies for shipping our jobs overseas. 

But there is no denying that the trade rules in America will now be fairer because of our hard work and perseverance. Working people have created a new standard for future trade negotiations. 

President Trump may have opened this deal. But working people closed it. And for that, we should be very proud. 

Contact: Carolyn Bobb (202) 637-5018

===

The following is a statement from Democracy for America CEO Yvette Simpson responding to the U.S. House Democratic leadership’s NAFTA 2.0 announcement:

"On policy, the jury is still out on whether the heavily revised NAFTA 2.0 will be a win for the country.  

"Some unions are supporting the deal while others aren't, but the idea that any trade agreement touched by the Trump administration can be trusted to protect the environment, prioritize worker safety, or hold big pharma's feet to the fire is absurd.

"Meanwhile, politically, making this deal today, of all days, is a major strategic misstep.  Swing district Democrats won't win a single new vote by agreeing to pass this trade deal.  Meanwhile, Donald Trump will be spending the next 11 months bragging about the trade agreement he "alone" passed, despite the political capital Democrats sunk into making sure NAFTA 2.0 was slightly better than the deal it’s replacing.

"Yes, Democrats made NAFTA 2.0 better, but any corporate Democrat who pushed to get this agreement passed that thinks Donald Trump is going to share the credit for those improvements is dangerously gullible.” -- Yvette Simpson, CEO, Democracy for America

===

ASSOCIATION FOR AFFORDABLE MEDICINES

USMCA Trade Agreement: A Victory for America’s Patients <http://bit.ly/2E3kwu3>
WASHINGTON DC (December 10, 2019) – Today’s agreement reached by the Congressional Trade Working Group and the Trump administration represents a victory for patients.

The revised text creates greater opportunities for patients in Mexico, Canada and the United States to access less expensive medicines and promotes a competitive pharmaceutical market across the three countries. The improved pharmaceutical provisions create the balance between access to medicines and support for innovation that was included in bipartisan 2015 Trade Promotion Authority legislation.

AAM is pleased <https://youtu.be/vOWhJGnThzI> that Congress and the Administration have made changes to USMCA that support open markets, greater competition and improved cost savings for patients and the three health care systems.

 <http://bit.ly/2E6xszr>

===

RON WYDEN
MEMORANDUM

To:
Reporters and Editors
From:
Keith Chu, Office of Senate Finance Committee Ranking Member Ron Wyden, D-Ore.
Date:
December 6, 2019
Re:
Wyden Statement on Agreement to Update NAFTA

Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today released the following statement in reaction to news that the administration has reached an agreement with Speaker Nancy Pelosi on changes to NAFTA 2.0:

“Let’s be clear what’s happened: Donald Trump, who said in the 2016 campaign that he would get rid of NAFTA, has now bulked it up and expanded it. Donald Trump did so after I and others said his first NAFTA rewrite did not do enough to protect American workers from trade cheats and level the playing field for our employers. 

“I do not have the details on how closely the agreement adheres to the Brown-Wyden trade enforcement regime, and I will be scrutinizing it closely to determine whether the final proposal contains the trade enforcement tools we have proposed.”

A web version of this memorandum is here <https://www.finance.senate.gov/ranking-members-news/wyden-statement-on-agreement-to-update-nafta>.

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