[CTC] Democrats unmoved by Trump’s NAFTA pitch in State of the Union address

Wed Feb 6 15:48:20 PST 2019

Two articles below…

Democrats unmoved by Trump’s USMCA pitch in State of the Union address
Inside US Trade,  02/06/2019

President Trump used his State of the Union address on Tuesday to ask Congress for swift approval of the U.S.-Mexico-Canada Agreement, but Democrats remained unmoved.

The North American Free Trade Agreement was a “historic trade blunder” and a “catastrophe,” Trump said in his speech. “I hope you can pass the USMCA into law so that we can bring back our manufacturing jobs, in even greater numbers, expand American agriculture, protect intellectual property, and ensure that more cars are proudly stamped with our four beautiful words: Made in the U.S.A.”

After the speech, the White House released a statement <https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-forged-new-trade-agreements-revitalize-american-industry/?utm_source=link> saying USMCA “will impose the toughest labor and environmental protections ever included in a trade agreement.”

However, concerns about enforceability remain.

“Its widely popular to criticize NAFTA,” Sen. Chris Coons (D-DE) told Inside U.S. Trade immediately following Trump's speech. “The challenge is to replace it with something more solid, more enforceable and that actually makes a lasting difference."

The likelihood of USMCA passing, Coons added, “depends on whether or not the promise to do labor and environmental provisions are actually enforceable.”

In response to Trump's speech, Senate Finance Committee ranking member Ron Wyden (D-OR) said in a press release that “When it comes to NAFTA, a deal isn’t worth much if it’s not enforceable, and as it stands NAFTA 2.0 is not enforceable."

“While I agree with Trump that America needs to do better on trade, so far his administration has done far more to create chaos and uncertainty than deliver results for American workers,” Wyden added.

Finance Committee Chairman Chuck Grassley (R-IA), however, said after the speech that Trump “kept his promise to update NAFTA and made key improvements for U.S. agriculture,” adding that USMCA “should be ratified this year to give certainty to the millions of American farmers, businesses, workers and families who will benefit from the updated trade deal.”

Democrats have also said they don't have enough details on the deal to make a final decision on USMCA. A report from the U.S. International Trade Commission on the economic impact of USMCA was originally scheduled to be completed by March 15, but it has been delayed due to this year's partial government shutdown. House Ways & Means trade subcommittee members have cited the delayed ITC analysis among several other reasons <https://insidetrade.com/node/165695> a vote on USCMA is unlikely to be held soon.

“I think he’s got a steep hill to climb in front of him to persuade congress to ratify USMCA, and this is the period of time where we’re supposed to be getting details about what the USMCA actually includes,” Coons said on Tuesday. Whether USMCA's labor and environmental provisions are enforceable is “debatable,” he added, but “most members of Congress, I think myself included, don’t have enough details yet to reach a conclusion about that."

Rep. Joaquin Castro (D-TX)  told Inside U.S. Trade  after Trump's speech that he hoped lawmakers could “get to a place that it’s [NAFTA] renewed” and that “it looks like the revised NAFTA may have” some labor standards -- but he hasn't seen an implementing bill yet.

“We have to re-evaluate how we do our agreements. When we were going through the Trans-Pacific Partnership I spoke directly to President Obama and the USTR about the fact that we do have to do a better job in terms of enforcement and that we need specific provisions in our trade agreements that require more of ourselves and of our trading partners to lift working conditions, labor standards, the pay of workers in these countries,” Castro said. “Texas is the number-one state in terms of trade, so it's a very important thing for us.”

Castro also said he recently met with members of the Texas Farm Bureau who spoke about the impact tariffs are having on their industry. Section 301 tariffs on China and Section 232 tariffs on steel and aluminum imposed by Trump have hurt U.S. farmers, farm groups have said. Democrats and Republicans have urged the Trump administration to lift the Section 232 tariffs before proceeding with the ratification of USMCA.

The National Farmers Union said in a press release that Trump's speech “failed to recognize the harsh realities facing American farm and ranch families.”

“The reality is that the downward trend in the farm economy has only worsened over the last two years, leaving many farmers and ranchers in significant financial stress. The reality is that once-stable markets for U.S. farm products are now being lost to our competitors. And the reality is that the current downward pressure on farm prices as a result of lost markets will continue for years to come,” the press release says. “To tout progress with China or USMCA as a win is misleading -- you can’t dig a ten-foot hole, fill it up with a foot of dirt and call that a win.”

Trump, meanwhile, is seeking to expand his authority to impose tariffs. As expected, he asked Congress <https://insidetrade.com/node/165765> in his Tuesday address to pass the Reciprocal Trade Act, which would allow the president to impose tariffs on a product-by-product basis. The legislation was introduced by Rep. Sean Duffy (R-WI) last month. Commerce Secretary Wilbur Ross also pushed for the bill on Thursday in an opinion piece published by Fox Business <https://www.foxbusiness.com/politics/trade-reciprocity-needed-now-wilbur-ross>. But Democrats and Republicans alike have expressed opposition to the bill. Some have also introduced legislation of their own that would limit the executive branch's use of tariffs and shift more responsibility back to Congress.

In an pre-speech “fact check” on Tuesday, Global Trade Watch Director Lori Wallach disputed the idea, espoused by Trump administration officials, that USMCA will pass easily through Congress. Global Trade Watch is a consumer advocacy organization. U.S. Trade Representative Robert Lighthizer has said there is “no doubt <https://insidetrade.com/node/165160>” Democrats will support USMCA.

“Democrats in Congress are insisting that NAFTA 2.0’s  giveaways to Big Pharma are eliminated. And also that tougher labor and environmental standards are added, because the deal Trump signed  won’t stop corporations from outsourcing American jobs,” Wallach said. “Trump’s deal is not the transformational replacement of corporate-rigged NAFTA that Americans need. But if the administration works with congressional Democrats on needed improvements, there is a path to passing the revised NAFTA with a broad bipartisan vote.” -- Maria Curi (mcuri at iwpnews.com <mailto:mcuri at iwpnews.com>)

POLITICO

Trade subcommittee chairman: 'A lot of work needed' before USMCA vote

By Megan Cassella 
02/06/2019 04:29 PM EDT

The Trump administration will need to put in significant work to address concerns surrounding prescription drugs under the new North American trade agreement before House lawmakers will be willing to pass the deal, an influential House Democrat said today.

"Talking to other members, my strong first impression is that there's a lot of work needed on access and cost of Rx drugs in NAFTA 2.0 to get committee support and House passage," said <http://go.politicoemail.com/?qs=68a8636f5e118ee1568a738ef1a633663146f7e55fb849a9b00c5f546b67f8b9e4657fccbb56fb0856a3d0e5d55ee1b4> Rep. Earl Blumenauer <http://go.politicoemail.com/?qs=68a8636f5e118ee172489acd26900c8530166378920fb20441104652af357f472c578550fa7e028803d60883355baf1f> (D-Ore.), who leads the House Ways and Means Trade Subcommittee.

The Oregon Democrat added that issues involving prescription drug pricing and "many other significant concerns with provisions relating to the environment, labor, and enforcement [will] all need strengthening."

The comments are Blumenauer's first public remarks on trade since becoming <http://go.politicoemail.com/?qs=68a8636f5e118ee17c293f4804b27ee651fef2e4645472faf2fc776546127cd56f50f43e8a0a13b4259dfb38458e5be5> subcommittee chairman earlier this year, a role that will give him significant influence over the approval process of the U.S.-Mexico-Canada Agreement. They indicate that Blumenauer, who has supported certain free trade agreements in the past, will press the Trump administration to make changes in a number of areas before his panel sends the USMCA to Congress for a vote.

Blumenauer also included a vague warning to the administration not to try to push the agreement through "prematurely." That could be an attempt to dissuade Trump from following through on his threat to withdraw from NAFTA to force a vote on USMCA.

"Trying to force consideration of this trade deal prematurely is not a recipe for success," he tweeted <http://go.politicoemail.com/?qs=68a8636f5e118ee19886c5068917fadc10ba58aa281033d103c9f6567acb382f6db94b5c316a497bb9800d6409fedd48>.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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