[CTC] Frustration All Around in NAFTA Talks

[Arthur Stamoulis]

Two articles below...

https://www.wsj.com/articles/lighthizer-charms-congress-but-struggles-to-sell-usmca-11563355920?mod=searchresults&page=1&pos=2 <http://r20.rs6.net/tn.jsp?f=00111Gev5xFJUuJKken8M8dACF7is8bfEJIqvArJpBZwNPjQlM8jn7Bhfec9n-ceSkiQd2fOvIu4VKPiDn4qHTKTPnmqgJ7dYltSc8YNdTuU4Qe5J-z0kDvVRfiPLWGJXHwnqMzlH5BnuG0Fsg07SMZLPGG0VUJHV9YlNj9aqAC7EiFENSSXyxydb_kRKXFU5sIkKWaPtaLDEt5Imlo2-GJgTv_ifuaOW-ljUuvjIU8e9Ypmp2wOtLDyOa484Af1Ubu5zsHTN8uySfdu0LrD4t8dggBu9u56duRsX-bI6LCnSw=&c=iYUN-UFIlR1RxosfCDp5qig6DcNy0cK3kmbn8L8iLtaQyvYLxgbFew==&ch=By6mflPfWwuK1u81UB3iHSlJLWdi6AWb6YkCXZ3TjT73sKgH7DAnrg==>

Lighthizer Charms Congress, but Struggles to Sell USMCA

By Natalie Andrews
July 17, 2019
 
WASHINGTON—When he isn’t trying to forge an elusive trade deal with China, U.S. Trade Representative Robert Lighthizer can often be found working Capitol Hill, schmoozing with lawmakers on that other trade deal, the one with Canada and Mexico.
 
Rep. Stephanie Murphy of Florida is one of the many Democrats Mr. Lighthizer has impressed with his attention to their concerns and the sheer amount of time he is devoting to win support for the U.S.-Canada-Mexico Trade Agreement, or USMCA.
 
When Mr. Lighthizer sees her approaching, Ms. Murphy said, he already knows that she plans to hound him about the seasonal strawberry and blueberry farmers in her district who want to stop Mexico from dumping cheap produce into the U.S.
 
“He says, ‘I know, I know, seasonality,’ ” she said.
 
Despite winning friends in Congress, Mr. Lighthizer is struggling to overcome resistance to ratifying the deal struck by President Trump last year.
 
“We’re all frustrated,” House Ways and Means Committee Chairman Richard Neal said on Tuesday after leaving a meeting with Mr. Lighthizer where lawmakers presented their objections to the agreement.
 
Democrats, who took control of the House this year, are asking for stricter enforcement provisions—especially for new labor rules aimed at Mexico—and stronger environmental protections, as well as a shorter term on the 10-year exclusivity for costly biologic drugs.
 
Lawmakers say that while Mr. Lighthizer has listened to their concerns, he needs to start taking concrete steps to reopen negotiations with Mexico and Canada.
 
“We’re at a place where he needs to pick up a pen and paper and start making changes,” Ms. Murphy said of the trade representative. “I think he understands fully what the concerns are from all corners of Congress.”
 
In a sharply worded letter last week, Rep. Derek Kilmer (D., Wash.) and the New Democrat Coalition said it was time for Mr. Lighthizer to move beyond talk.
 
“While we appreciate your willingness to listen, we have not seen any meaningful progress or tangible proposals from you to address these concerns,” the letter said.
 
Mr. Lighthizer and the U.S. trade representative’s office declined to comment.
 
The deal struck last year to replace the 1994 North American Free Trade Agreement requires ratification by legislators in all three countries before it can take effect. Mexico ratified the agreement last month, and it is expected to pass easily in Canada. The pact faces the steepest path in the U.S. Congress and must start in the Democratic-controlled House.
 
Mr. Trump has resisted making changes and has threatened to withdraw from Nafta or impose tariffs on U.S. neighbors if Congress doesn’t pass his new agreement. He appeared to renew those warnings Monday.
 
“If it doesn’t happen, I have a better plan, OK?” Mr. Trump said at a White House event on American manufacturing.
 
But to Democrats in Congress, other priorities are looming, including a humanitarian crisis at the Mexican border and a battle over funding the government. That appears to have made the trade deal a back-burner issue at a time when it needs to be building momentum.
 
Blocking USMCA could also be a means for Democrats to deny Mr. Trump a trade victory as he heads to a 2020 re-election campaign.
 
Mr. Lighthizer, who has been leading efforts to cut a trade deal with China, has recently shifted more of his attention to USMCA.
 
He has trekked to Capitol Hill at least weekly to meet with House Democrats. He has also met repeatedly with the Ways and Means Committee, as well as the centrist Democratic groups known as the Blue Dogs and the New Democrat Coalition, which support reworking Nafta.
 
He has also met with the Progressive Caucus as well as the Hispanic Caucus, groups that have ardently opposed policies in Mr. Trump’s administration.
 
“He’ll do one on ones, he’ll pick up phone calls, he’ll come up on the Hill and have larger group meetings,” said Rep. Ron Kind (D., Wis.). “A, he’s trying to inform people what’s in the agreement and why this makes sense for the country. But B, he’s trying to listen to people’s concerns and what accommodations could be made.”
 
Such praise for a cabinet-level appointee in the Trump administration is rare from Democrats, but that might be because Mr. Lighthizer knows Congress. He went to work for Sen. Bob Dole (R., Kan.) in the late 1970s and served as chief of staff for the Senate Finance Committee, which oversees trade, when Mr. Dole became chairman in 1981.
 
But Democrats, while applauding Mr. Lighthizer, aren’t certain his views reflect those of the White House overall.
 
“Usually when there’s a pending trade agreement, it is all hands on deck,” said Mr. Kind. “Every member of the administration is on the Hill talking to members...Bob is doing yeoman’s work in that regard, but he’s doing it by himself. And that’s unfortunate.”
 
The White House formally notified Congress last month that it is starting the approval process for the trade agreement and could at any time submit the agreement to Congress, though chief White House economic adviser Larry Kudlow said last week that they are waiting on House Speaker Nancy Pelosi (D., Calif.).
 
“Lighthizer has said that we will submit formal legislation when she gives the green light on the vote,” he said in an interview at CNBC’s Capital Exchange event.
 
Mrs. Pelosi, who has a monthly meeting with Mr. Lighthizer, as well as phone calls, according to an aide, has said the deal may need to be reopened with surgical precision to accommodate Democrats’ requests.
 
Most Democrats say mid-fall is a more likely time to take up the agreement, given that the July agenda is full and Congress will then recess until after Labor Day.
 
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https://www.politico.com/newsletters/morning-trade/2019/07/17/frustration-all-around-in-usmca-talks-458992

Politico Morning Trade

FRUSTRATION ALL AROUND IN USMCA TALKS: The Trump administration is turning up the pressure on Congress to pass its signature trade deal with Mexico and Canada, with officials increasingly frustrated at the pace of talks. House Democrats tasked by Speaker Nancy Pelosi <https://cd.politicopro.com/member/51564> to negotiate changes to the deal are also frustrated that Lighthizer hasn’t budged in addressing their concerns. 

Still working: Lighthizer and the nine Democrats on the USMCA working group will meet again today to discuss environmental concerns. But they’ll likely also talk about the other three prevailing issues — enforcement, labor and drug pricing. 

“I think all the parties would, at least, agree that the dialogue is sound in that the conversation is moving along,” House Ways and Means Chairman Richard Neal <https://cd.politicopro.com/member/51543>, who leads the working group, said Tuesday after meeting with Lighthizer and Pelosi. 

Neal, who said he’s now speaking with USTR almost daily, acknowledged that “we’re all frustrated.” USTR declined to comment on the status of negotiations. 

Don’t expect a pre-recess breakthrough: Neal said Tuesday he doesn’t see Democrats and Lighthizer reaching an agreement in principle before the August recess.

But Rep. Jan Schakowsky <https://cd.politicopro.com/member/51607>, another working group member, told Morning Trade that reaching a breakthrough depends on Lighthizer moving to please Democrats. “If the trade representative will agree with us, we can do it tomorrow,” she said. 

Asked if there is talk of putting the deal to a vote this fall, Neal said: “It’s pretty obvious that’s what the administration, meaning the ambassador, is pushing for. I don’t think we want to let it languish in the next year.”

White House plans August push: During the recess, White House officials will fan out to districts where they believe are “gettable” Democrats, a business lobbyist told Morning Trade. That includes Democratic districts that President Donald Trump carried in 2016 or those that flipped from red to blue in the 2018 midterms.

The effort will try to gin up support for the deal with visits to local companies that would benefit from the updated NAFTA. The administration is also planning to use local media.

NAM jumps in: The National Associations of Manufacturers is hosting a fly-in today to push for USMCA passage. More than 130 representatives participate in more than 120 meetings with House Democrat and Republican offices.

Republicans beat the drum for a vote <https://subscriber.politicopro.com/article/2019/07/senate-republicans-amp-up-the-pressure-for-a-usmca-vote-1595976>: Nine Senate Republicans took to the floor Tuesday afternoon to offer a forceful show of support for USMCA, emphasizing the need to pass it as soon as possible in order to reap the economic benefit and return some element of certainty to U.S. farmers and manufacturers who rely on Canadian and Mexican export markets.

A PRECEDENT FOR AMENDING TRADE DEALS: Twelve years ago, the Bush administration was faced with a similar situation. Democrats were demanding changes to trade deals with South Korea, Panama, Peru and Colombia before voting on them. 

Secret negotiations led to what’s known as “the May 10th Agreement,” <https://ustr.gov/sites/default/files/uploads/factsheets/2007/asset_upload_file127_11319.pdf> which addressed a long list of Democratic concerns. At that point, South Korea and Panama had not yet passed their trade agreements with the U.S., so they were able to incorporate the new provisions into the text of their respective deals. 

And the others? Peru passed its trade deal with the U.S. in 2006, so it had to approve a “protocol of amendment” in June 2007 for the changes.

In Colombia’s case, legislators voted in June 2007 to approve the unamended agreement. But it took several more months for the amendments demanded by the U.S. to pass both the Colombian House and the Senate.


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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