[CTC] Lighthizer sells implementing bill as the answer

[Arthur Stamoulis]

POLITICO

TRUMP'S NEW NAFTA FACES A MEXICAN LABOR PROBLEM: Lighthizer met with House Democrats on Wednesday as part of the Trump administration's effort to figure out what it will take to draw their support for the U.S.-Mexico-Canada Agreement. 

One of the main takeaways: Democratic support doesn't rest only on the White House. The deal's fate on Capitol Hill could depend on Mexico's willingness to implement major labor law reforms. 

Lighthizer "knows we're not there yet. Mexico has to make some moves beforehand, to show good faith," said Rep. Bill Pascrell <http://go.politicoemail.com/?qs=7efccf9c362aea5672526962c4a6e40699b678f9ed9cc6a3d7b2b9161c798f82fd43ad22f48055753d03d4dd2e7f5e9e> (D-N.J.), a senior House Ways and Means member. "We need that, first of all. If they don't act, there's no chance of getting the votes."

What's the hold-up? Some Democrats, including Pelosi, have said they are waiting for Mexico to pass a law that would overhaul the country's labor structure to ensure workers have collective bargaining rights and secret votes for unionization. 

The Mexican Senate is expected to pass the necessary legislation next month, but some lawmakers are still concerned Mexico will backpedal on its commitments. The text of USMCA specifies that ratification could be delayed if Mexico doesn't make the promised changes. More here <http://go.politicoemail.com/?qs=7efccf9c362aea56907fac5e043621f8c31e13cbc0bf92ab3c4a767148cce193ef3731732e204e2fc839ed772348c39c>. 

LIGHTHIZER SELLS IMPLEMENTING BILL AS THE ANSWER: The U.S. trade chief told lawmakers on Wednesday that prevailing concerns over the enforceability of the pact could be addressed through forthcoming legislation to implement the deal, instead of reopening USMCA. 

Not on Pelosi's watch: "He said we're going to address it in the implementing bill, and you could see Speaker Pelosi shaking her head because that's not the way we're going to do this," said Rep. Pramila Jayapal <http://go.politicoemail.com/?qs=190e1ab5a17f5d946ae639a0507ab1bad52ef6e8813aea266eb36edaac3f5ffff03593eabbcdcf406bd3daa1304883e1> (D-Wash.).

Blaming AMLO: Lighthizer also used the new administration of Mexican President Andrés Manuel López Obrador as part of his reasoning against reopening the pact. Lighthizer said reopening the deal could prompt the populist Mexican leader to want big changes to areas that were considered settled. 

PROGRESSIVES MAKE THEIR USMCA DEMANDS: Rep. Mark Pocan <http://go.politicoemail.com/?qs=190e1ab5a17f5d94721c55616fd9377d810d13f1e24485eb0a2cd2ced23e69053d0146486a609d6b682ab4a2f3536746> (D-Wis.) outlined the Congressional Progressive Caucus' four demands for the new NAFTA deal. 

First, the pact's provisions on biologic drugs need to be changed. Second, Mexico needs to pass its labor reforms, which "Lighthizer said we shouldn't vote on it until that happens," he said. Third, the deal needs to have proper enforcement of labor provisions. Finally, the caucus is concerned that the deal still allows oil and gas companies to use an investor-state dispute settlement process for investments in Mexico.

"Really those four major provisions, which aren't that hard to fix, would make it close to acceptable," he said.

Pocan said the caucus of more than 90 members has "not taken a formal position against it but we want it reopened to change it. To me those are identical things but to some people they're not," he said.

Brady's view: House Ways and Means ranking member Kevin Brady <http://go.politicoemail.com/?qs=b202473cbc903e3b0ce1548c7171a01e31f69121f8f00304f62a01929290be144817048a24a5736ef131b96a61ec4b71> (R-Texas) accused the progressive caucus of putting "in jeopardy our trading relationship with Mexico and Canada" by opposing the deal.

"My worry is that the progressive caucus and others are still so deeply involved in this rush for impeachment that it's distracting them from a lot of the work that needs to be done over here," Brady said to reporters on Wednesday. "One of them is modernizing this trade relationship with our two biggest trading partners."



Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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