[CTC] Neal to send USTR counterproposals on NAFTA, cites progress with USTR

Thu Nov 21 13:36:01 PST 2019

Neal to send USTR counterproposals on USMCA, cites progress with USTR

Inside US Trade, November 21, 2019 at 3:55 PM
House Ways & Means Committee Chairman Richard Neal (D-MA) said he will send U.S. Trade Representative Robert Lighthizer another set of counterproposals after the two sides narrowed differences over the U.S.-Mexico-Canada Agreement in a meeting with House Speaker Nancy Pelosi (D-CA) on Thursday.

House Democrats have taken issue with USMCA’s labor, environmental, pharmaceutical and enforcement provisions. Earlier this year Pelosi appointed a working group, led by Neal, to hash out those concerns with USTR.

The remaining differences have been narrowed down “from five” differences “to three or maybe two and a half,” Neal said after the meeting. Neal said he would deliver USTR “a couple counterproposals.”

The two sides frequently exchange documents, lawmakers who have participated in the negotiations have said. Last week, Democrats emphasized <https://insidetrade.com/node/167644> that they want to see agreements the two sides have reached reflected in writing before moving to vote on USMCA.

AFL-CIO President Richard Trumka, who’s approval Democrats are keen to win, has also pressed <https://insidetrade.com/node/167676> for seeing agreements in writing.

Neal said the two sides made “a lot of progress” on the enforcement issue. The enforcement of the deal’s labor provisions, particularly as they relate to Mexico, has been a key sticking point in the talks with USTR. U.S. labor organizations and Democrats worry Mexico won’t properly implement their recently passed labor reforms laws in line with USMCA.

“We’re looking at the big picture here. How it’s going to look like in the end and how we’re going to sell this,” Neal said. “Labor would be pretty supportive of three of the issues that I think will be written up today.”

Lighthizer and Trumka will continue to speak over the phone through Thanksgiving week and hold another in-person meeting soon, Neal said. Meetings will continue at the principal level and include Neal, Pelosi and Lighthizer, he said.

“We’ve made progress. I think we are narrowing our differences,” Pelosi said after Thursday’s meeting. Earlier on Thursday, the speaker cast doubt on whether <https://insidetrade.com/node/167689> USMCA could be voted on before the end of the year, as some observers hope for.

Pelosi listed actions that must be completed before a vote, including opening discussions with Canadian and Mexican officials “in terms of the change on the actual treaty.”

Whether the USMCA text has to be reopened will be up to Lighthizer “to interpret later on,” Neal said. “I don’t think that’s something we’re pushing for at this particular time. I did talk to [Canadian Prime Minister Justin Trudeau] and he indicated to me that anything short of [reopening USMCA] would be preferable, but he didn’t rule anything in addition in or out."

Neal added that he wouldn’t be so “abrasive” to announce a deal without first consulting with Canada and Mexico. “Courtesy would suggest that we have to inform them,” he said.

Neal said he did not expect Thursday’s meeting to result in the announcement of a deal and that the lack of a handshake agreement does not meant the two sides can’t reach an understanding by the end of the year.

Senate Majority Leader Mitch McConnell (R-KY) on Thursday continued to rip House Democrats for “stalling” a USMCA vote. “Now we are one week out from Thanksgiving and there is still no tangible sign of progress from the House,” McConnell said on the Senate floor. “If the House cannot pass the USMCA this year, there is no way they’ll be able to claim the people’s business has not taken a backseat to impeachment.” -- Maria Curi (mcuri at iwpnews.com <mailto:mcuri at iwpnews.com>)

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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