[CTC] Neal: USTR 'favorably' received NAFTA working group's counterproposal

[Arthur Stamoulis]

Neal: USTR 'favorably' received USMCA working group's counterproposal
By Maria Curi, Inside US Trade
09/27/2019

U.S. Trade Representative Robert Lighthizer has responded "favorably" to a counterproposal from the House Democrats' working group negotiating U.S.-Mexico-Canada Agreement issues with the administration, Ways & Means Committee Chairman Richard Neal (D-MA) told reporters.

Neal leads the working group set up earlier this year by House Speaker Nancy Pelosi (D-CA) to address outstanding issues with USMCA's labor, environment, pharmaceuticals and enforceability provisions.

The counterproposal offered to Lighthizer on Friday covered all four areas, Neal told reporters after the working group met with the USTR on Friday. USTR sent its proposal to the working group earlier this month.

Lighthizer's reaction to the working group's counterproposal was "favorable but they still have to digest it," Neal said. "I wouldn't say we're on the precipice [of a deal] but the job is to get to the precipice and not over the edge."

The House on Friday will recess for two weeks, though impeachment proceedings reportedly could cut that break short. USMCA conversations are expected to continue during the recess.

The "intensity" of talks over the next two weeks "is going to be really important and we hope that then ... when we get back we'll be able to see ... the goal line," Neal said, adding, "We've reached some agreement on a couple of substantial issues."

"We're starting to go into the sixth inning," Rep. Jimmy Gomez (D-CA) told reporters after Friday's meeting. Gomez is playing a lead role in addressing labor concerns with the deal.

Lawmakers and labor advocates have flagged as problematic some aspects of Mexico's 2020 budget proposal, which includes projected funding for the implementation of recently passed labor reform legislation. The budget proposal was introduced to the Mexican Congress earlier this month.

Mexico's funding proposals for labor reform are outside Lighthizer's bailiwick, Gomez said, "but it is a concern that we've expressed consistently, and I've asked other members to start expressing [it] to" Mexican Ambassador to the U.S. Martha Bárcena.

Gomez said he had not yet spoken with the Mexican embassy about the labor reform funding concerns but would do so "soon." Many members have told Gomez they would be meeting with Bárcena, he said, adding that he "told them to really stress the need to put more money in the budget for labor reform to build some confidence among the Democratic members that it's going to stick."

Working group members have kept the specifics of the proposals exchanged under wraps, though Gomez offered a glimpse into a possible environmental solutions.

Using the North American Development Bank to address environmental issues at the U.S.-Mexico border is "definitely something" the working group is "looking at," Gomez said. Additionally, some House members, especially those from "along the border region," have "expressed interest [in] making sure that there's appropriate funding" for NADB, Gomez said.

The NADB administers grant funds from the Environmental Protection Agency for water infrastructure projects at the U.S.-Mexico border. Bárcena has previously suggested replenishing NADB funds to address water pollution at the U.S.-Mexico border.

Gomez noted that 15 percent of NADB funds can be invested outside of the border region, which he said was "something that would be appropriate to look at as well." The working group and Lighthizer held an environment-focused USMCA meeting in July, at which Democrats raised the issue of water pollution at the border.

Neal on Friday said the working group still hoped USMCA could be ratified this year, a day after Pelosi said Democrats still hoped to get to yes on the deal.

Senate Majority Leader Mitch McConnell (R-KY), however, this week accused Pelosi of using "stalling tactics" and Democrats of "heel-dragging" on USMCA.

Those comments drew a sharp response from Rep. Rosa DeLauro (D-CT), a working group member.

"McConnell the grim reaper?" she told Inside U.S. Trade, before proceeding to list legislation she said McConnell had delayed. "You want to talk about stalling? I mean, whoa."

"No one is stalling. From the outset this has been -- and USTR understands this -- that the substance will drive the timing," DeLauro said. "It's a good political move on his part, but, hell."

"McConnell doesn't know what he's talking about; he's not in the room," Gomez said. "We have a strategy and we're implementing it."
Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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