[CTC] USTR’s White: USMCA proving ‘infectious’ as U.S. pushes for higher labor standards

[Arthur Stamoulis]

USTR’s White: USMCA proving ‘infectious’ as U.S. pushes for higher labor standards
Inside US Trade, 5/19/23
 
The U.S.-Mexico-Canada Agreement has been proven “infectious” as the U.S. pushes for higher labor standards during talks with other trading partners, Deputy U.S. Trade Representative Jayme White said on Thursday, noting shifts in how both U.S. lawmakers and other countries discuss labor.
 
During a May 18 event hosted by Politico <https://www.politico.com/live-events/2023/05/18/politico-energy-summit-00001441>, White said trading partners have shown “a lot of interest” in how the U.S. plans to fight forced labor -- and USTR uses these opportunities to start “conversations about what they can do.”
 
“So, there is some open-mindedness but also ... the fact that we have USMCA helps us when we have discussions with our trading partners,” White said. “[USMCA] in my point of view is kind of infectious in a way, so we have lots of engagement with … countries, and we talk about these issues in ways that we didn't used to.”
 
Discussions about labor standards also have evolved on Capitol Hill, White said, citing shifting dynamics in contending that “partisan fight[s]” over labor provisions in trade deals have abated.
 
Lawmakers were able to agree on “some new mechanisms” for USMCA, White noted. USMCA gained bipartisan support in Congress after Democrats secured stronger labor provisions, including a rapid-response mechanism USTR to date has used to remediate eight claims against Mexican facilities, according to the agency’s website <https://ustr.gov/issue-areas/enforcement/dispute-settlement-proceedings/fta-dispute-settlement/usmca/chapter-31-annex-facility-specific-rapid-response-labor-mechanism>. USTR Katherine Tai in March said the agency was “very much looking to replicate <https://insidetrade.com/node/176491>” the RRM in its future trade dealings.
 
USMCA has led some in Congress to consider increasing the trilateral agreement’s influence <https://insidetrade.com/node/176912>, including through expanding membership. A pathway allowing other Western Hemisphere countries to join USMCA is central to Senate Finance committee member Bill Cassidy’s (R-LA) and Rep. Maria Elvira Salazar’s (R-FL) forthcoming “America’s Act <https://insidetrade.com/node/175910>.” Finance committee member Michael Bennet (D-CO) signed onto the legislation <https://insidetrade.com/node/176809> earlier this month.
 
Asked if enforceable labor and environmental standards "could be part of the conversation” for the U.S.-led Americas Partnership for Economic Prosperity and Indo-Pacific Economic Framework for Prosperity, White said "absolutely."
 
“We have the other [free trade agreements] and there's work within the FTAs that we can do to up the standards,” he continued. “As a general matter, when we come to the table on trade issues, we are thinking about workers and their families and their communities, and what can we do to advance their interests and our collective interests.”
 
The Biden administration has repeatedly described IPEF and APEP as key to its worker-centric trade policy. IPEF and APEP talks are addressing higher labor standards, USTR has said.
 
USTR this month released new details on a labor text <https://insidetrade.com/node/176834> the agency tabled during the second IPEF negotiating round in March. The U.S.’ proposed labor provisions would require IPEF members to “adopt and maintain internationally recognized labor rights in its labor laws” and would promote “compliance with labor laws through commitments related to non-derogation from, and the effective enforcement of, labor laws,” according to a summary of the text <https://insidetrade.com/sites/insidetrade.com/files/documents/2023/may/wto2023_0377a.pdf>.
 
The text, however, does not mention an enforcement mechanism, calling for provisions “to encourage corporate accountability where an entity violates local labor laws.”
 
More than 400 unions, civil society and other groups in March penned a letter to Biden asking for IPEF to include facility-specific enforcement mechanisms <https://insidetrade.com/node/176320> that build upon USMCA’s RRM. IPEF countries “must take steps forward relative to the USMCA, not backward, on labor rights and labor enforcement,” the groups wrote. -- Jason Asenso (jasenso at iwpnews.com <mailto:jasenso at iwpnews.com>)

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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