[CTC] White House NAFTA Strategy

Wed Jun 12 07:10:50 PDT 2019

Politico Morning Trade

— Acting White House Chief of Staff Mick Mulvaney hinted at a USMCA strategy in which the Democratic caucus applies pressure on its leaders to move the deal. ...

A USMCA LOBBYING STRATEGY: The White House is hoping to expose cracks in the Democratic caucus as it tries to get its crowning trade achievement — the U.S.-Mexico-Canada Agreement — passed in Congress this summer. Acting White House Chief of Staff Mick Mulvaney recognized House Speaker Nancy Pelosi <http://go.politicoemail.com/?qs=70423b6149cad6d4c91b3910ab8abc6f0ba789d5ec86dfe4da016c60f06e2100b126735120d5b5b3a41b00d0aa270e3d>'s dilemma of needing majority support within her caucus before requesting that the White House send up the deal. "I don't think she can bring something that's going to pass with 20 or 30 Democrats," Mulvaney said. 

"We're going to do what's obvious under those circumstances [which] is try to bring pressure on the Democrats in Congress to bring pressure on their own leadership for a vote," he said Tuesday. "We know there are champions of this bill in the House."

'Clueless': Pelosi has dispatched certain lawmakers to serve on "working groups" that will try to resolve Democratic concerns with the pact's labor, environment and pharmaceutical provisions. Those working groups have now been formed, according to two House aides, but Pelosi's office has released no specifics. 

One source close to House Democratic dynamics on USMCA told Morning Trade that there's no appetite in the caucus for a USMCA vote until Pelosi's criteria are met. "Her position reflects where the caucus is solidly rooted. Mulvaney seems clueless about the dynamics," said the source, noting that enthusiasm for the deal is even lacking among Democratic freshmen from border states that supported Trump in 2016.

Freeland checks in: Canadian Foreign Affairs Ministers Chrystia Freeland will be in Washington on Wednesday and Thursday to meet with Lighthizer, Secretary of State Mike Pompeo and lawmakers. USMCA ratification is expected to be a major focus of her visit <http://go.politicoemail.com/?qs=70423b6149cad6d43ea0db2560bb576a6381647162b4bde8e94a3b574be7d311c5a0d44123aa13991f2fafac264bebad>, our Pro Canada colleague Alex Panetta reports.

Meanwhile, Canada's Parliament opened debate Tuesday on its own USMCA implementation bill. Canada could amend its legislation to reflect changes negotiated between the Trump administration and House Democrats, but the Parliament faces a time crunch. Alex has more on the view from Ottawa here <http://go.politicoemail.com/?qs=70423b6149cad6d48848aef1a621157015f6d13a7f6144482dbb12009a1b20100686d652f5d1b64cb0ff9160fd9a99f4>.

Mark your calendars: Lighthizer is expected <http://go.politicoemail.com/?qs=70423b6149cad6d41ef5a9f5efd7a289678cb369094023c162ecb8915d0ca48eaf51da4d14766971bcda7fb3c869e810> to testify Tuesday morning before the Senate Finance Committee on USMCA and the president's trade agenda. The hearing will mark the second time the U.S. trade chief sits before the panel this year, following his March testimony on the World Trade Organization.

Grassley huddles in the House: Senate Finance Chairman Chuck Grassley  <http://go.politicoemail.com/?qs=70423b6149cad6d4eb4b81c65bf2dc08a580e71cadad9c6c5621a89a18a7182ee6d4aa0e414e531c8577109570b4e68b>(R-Iowa) expressed optimism about the USMCA winning Democratc support, after a meeting Monday with Pelosi and House Ways and Means Chairman Richard Neal <http://go.politicoemail.com/?qs=70423b6149cad6d4c0dddf4c8abed92f70b3da67da6f1157589f362b615150583a9ea34889c2bf7da8def37263d50120> (D-Mass.).

"I didn't get any feeling [Democratic demands] couldn't be worked out, although there's some tough issues that we have to do to satisfy Democrats," he said on a Tuesday call with reporters. "In other words, I don't hear any obstacles to the usual things I think can be worked out, and you know what those are — environment, labor and enforcement."

TRUMP WELCOMES FRESH LOBBYING IN FAVOR OF HIS DEAL: Nearly 1,000 food and ag groups are urging Congress <http://go.politicoemail.com/?qs=70423b6149cad6d4a2ca9a4c5fb1ce5a4b120777acca14f039ab0162bb20757a7c6903e207966262b8230d79bbf45e2a> to pass the USMCA "quickly." In a letter  <http://go.politicoemail.com/?qs=70423b6149cad6d418e92a24c0617a4953250826ea8d42a4f8a6c241fcdd9caa9839807a25e00169048158fd2551755e>sent to congressional leaders, groups including the American Farm Bureau Federation and the National Cattlemen's Beef Association highlighted the U.S. International Trade Commission's analysis showing the NAFTA replacement would benefit the food and ag industry. 

The letter came as welcome news to Trump, who tweeted <http://go.politicoemail.com/?qs=70423b6149cad6d46aebd171673b0c4096e2944c1f9508f5ccfa3dcf78c6685de63046d4acb97a92438017d2a300f968> about it on his way to Iowa where he mounted a defense  <http://go.politicoemail.com/?qs=70423b6149cad6d45e6c078d657b3545c72a06047506437ab4631f8edc387adf2f5aa69727d2e95ff5e236a57be4e6b6>of his trade war. "Our Patriot Farmers & rural America have spoken!" he wrote. "Now Congress must do its job & support these great men and women by passing the bipartisan USMCA Trade Agreement!"

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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