[CTC] Democrats, Lighthizer Inch Closer to NAFTA Deal

Fri Oct 18 07:14:20 PDT 2019

Politico Morning Trade

— U.S. Trade Representative Robert Lighthizer will be on the Hill again this morning to meet with the USMCA working group. As both sides move closer to a deal, Mexico warned it needs to approve any changes they come up with. 

— Mexican President Andrés Manuel López Obrador on Thursday pledged to fully implement labor reforms required in the USMCA,but Democrats say they still need more assurances.

DEMOCRATS, LIGHTHIZER INCH CLOSER TO USMCA DEAL <http://go.politicoemail.com/?qs=5af434df17a413a285e15084c7b27a0da6f868c6e0c39bcf9607ffe84bd273a4302c858785cb05fd2bbbc6957b9f1233>: Lighthizer is scheduled to meet again with the nine-member USMCA working group this morning, one day after House Speaker Nancy Pelosi  <http://go.politicoemail.com/?qs=5af434df17a413a2e04f5b2b39fcbb0a51b6b2880029b4042459207ccf5fc796c230d862c5dc51341ce1cb55a704a0cd>said negotiations between the Trump administration and Democrats are close to wrapping up. 

The working group could meet with Lighthizer just a couple more times "and then we should just see. The issue is: Do we have enforcement?" Pelosi told reporters. 

Not there yet: Speaking after a 90-minute meeting with Lighthizer, House Ways and Means Chairman Richard Neal  <http://go.politicoemail.com/?qs=5af434df17a413a22fb59f46813def7e8d0137896d937d3d758194ad351c8876b4ec7f73ed75febebd8a552d069b0811>said Thursday that Democrats are still looking for assurances on enforcement. 

Asked whether the two sides might be able to reach a handshake deal by Thanksgiving, Neal replied: "I would like to think that, but I think that even based on what we discussed here today ... that there's still a ways to go."

Factoring in Mexico <http://go.politicoemail.com/?qs=52bd957a995097af82730d394b434cc0956bfe364585b1d94e774851da13ec8719e6b9035852a1397d3dc0e785db66f9>: Jesús Seade, Mexico's undersecretary for North America, made clear on Thursday that any changes Democrats and Lighthizer agree to will require approval from Mexico. He said he expects Lighthizer will come to him with a list of changes that Democrats accepted — and then it'll be up to Mexico to assess what works for them. 

"It has become obvious that there are things that will need to be adjusted," he said. "When Lighthizer presents [the changes] to me, perhaps it will be a negotiation of 10 minutes ... or perhaps it will be a bit more complicated."

MEXICO MAKES PLAY FOR USMCA PASSAGE <http://go.politicoemail.com/?qs=52bd957a995097af1b26d94086d9846dbbb90020b7c4c00f3ac00c0197d16e59a91d01cfccae0cbaf314bb95429c2ee4>: Seade and Mexican Ambassador to the U.S. Martha Bárcena were also on the Hill on Thursday in an effort to assuage Democrats' concerns over Mexico's labor commitments in the USMCA. And they came with a clear message from Mexico's president: We are serious about enacting our labor reforms. 

In a four-page letter to Neal, López Obrador pledged to allocate the necessary funding and do whatever is necessary to implement Mexico's labor reforms as outlined in USMCA. The letter represents a formal written distillation of promises Mexican government officials made when five House Democrats, including Neal, traveled to Mexico earlier this month to receive an update on the country's labor reform efforts.

"Our government is committed to this labor policy, and I am absolutely certain that we will carry it out as described," López Obrador wrote. 

Not enough: Neal called the letter a "significant step in the right direction" but maintained there is more work to be done on the issue. 

Rep. Bill Pascrell <http://go.politicoemail.com/?qs=52bd957a995097afe682b05071bfed3ebde521cb328afa7f099e1b9b02d811d7b060374dfe8cca48907d57e57ae74d54> (D-N.J.), a senior Ways and Means member, was more critical, calling the changes outlined in the letter "a drop in the bucket."

"A few extra inspectors is not enough to properly review all the collective bargaining agreements in a timely manner," he said in a statement. "That these budget shortfalls occurred when these reforms are under such intense scrutiny is alarming and make me question their continued and sustained labor commitments."

EQUIPMENT MANUFACTURERS PUSH FOR QUICK USMCA WORK: The Association of Equipment Manufacturers is urging the USMCA working group to pass the new trade deal as quickly as possible. It sent letters to each member on Thursday emphasizing that none of the agreement's benefits can be reaped until the pact is approved by Congress.

In the letter  <http://go.politicoemail.com/?qs=52bd957a995097afa3965d015a606644733026d1e1ec37367dc0b17f45d09edcd7bd737050fdc2af516973da32d7cc31>, which was signed by AEM President Dennis Slater and shared with Morning Trade, the 1,000-plus-member organization highlighted a need to pass the deal for three primary benefits: greater certainty, increased market access for agricultural commodities and updated digital trade provisions. 

"While AEM understands that members of the working group are attempting to tackle outstanding concerns with the agreement, we urge you to move forward quickly," Slater wrote.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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