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<div class="column"><p class=""><span style="font-size: 16.000000pt; font-family: 'Times New Roman'" class=""><b class="">Opening Statement of USTR Robert Lighthizer at the First Round
of NAFTA Renegotiations
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<div class="column"><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">AMBASSADOR LIGHTHIZER:
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<div class="column"><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">As Delivered
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">August 16, 2017
Washington, DC
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<div class="column"><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">This is an historic day for the United States. Today, for the first time, we will start negotiating to
revise a major free trade agreement. American politicians have been promising to renegotiate
NAFTA for years, but today President Trump is going to fulfill those promises.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">I want to thank members of Congress, and their staffs, who have helped lay the groundwork for
these negotiations. We look forward to working with them now and in the future as things
proceed.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">I would also like to thank the members of our advisory committees, and other stakeholders, who
have given USTR their thoughts about how this agreement can be improved. We held three days
of hearings, and we received testimony and comments from thousands of stakeholders. Their
suggestions are critical to our process, and we appreciate everyone’s help.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">First, I know we all agree that NAFTA needs updating. This is a 23 year-old agreement and our
economies are very different than they were in the 1990’s. We need to modernize or create
provisions which protect digital trade and services trade, e-commerce, update customs
procedures, protect intellectual property, improve energy provisions, enhance transparency rules,
and promote science-based agricultural trade.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">In each of these areas, hopefully we will develop model provisions that can be used for years
ahead and that have the flexibility to adapt to future innovations that we can’t even imagine at
this point. This is an important part of our process.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">After modernizing, the tough work begins. We must balance the legitimate interests of literally
millions of people in our countries -- those of farmers, and businesses, and workers and yes,
families.
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<div class="column"><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">Many Americans have benefited from NAFTA. For many of our farmers and ranchers, Canada
and Mexico are their largest export markets. Americans send billions of dollars of corn and
soybeans, and poultry across our borders to dinner tables throughout North America.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">These are hardworking people with families who ask little from their government. Many are
particularly vulnerable today because of low commodity prices.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">I’ve always thought that communities along our borders have a particular equity in this
agreement. In many cases their lives, businesses, and families are very much on both sides of the
dividing line. They too are hardworking men and women trying to raise a families and
accumulate wealth. We must keep their interests paramount.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">But for countless Americans, this agreement has failed.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">We cannot ignore the huge trade deficits, the lost manufacturing jobs, the businesses that have
closed or moved because of incentives -- intended or not -- in the current agreement.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">The numbers are clear. The U.S. Government has certified that at least 700,000 Americans have
lost their jobs due to changing trade flows resulting from NAFTA. Many people believe that
number is much, much bigger than that. In 1993, when NAFTA was approved, the United States
and Mexico experienced relatively balanced trade. However since then, we have had persistent
trade deficits – in the last year totaling nearly $57 billion. In the auto sector alone, the U.S. has a
$68 billion deficit with Mexico. Thousands of American factory workers have lost their jobs
because of these provisions. In recent years, we have seen some improvement in our trade
balance with Canada. But over the last ten years, our deficit in goods has exceeded $365 billion.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">The views of the President about NAFTA, which I completely share, are well known. I want to
be clear that he is not interested in a mere tweaking of a few provisions and a couple of updated
chapters. We feel that NAFTA has fundamentally failed many, many Americans and needs
major improvement.
</span></p><p class=""><b class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">Here are some of the examples of what I believe needs to be changed. We need to assure that
huge trade deficits do not continue and that we have balance and reciprocity. This should be
periodically reviewed. Rules of origin, particularly on autos and auto parts, must require higher
NAFTA content and substantial U.S. content. Country of origin should be verified, not
“deemed.” Labor provisions should be included in the agreement and be as strong as possible.
The agreement should have effective provisions to guard against currency manipulation. The
dispute settlement provisions should be designed to respect our national sovereignty and our
democratic processes. We should include provisions to guard against market-distorting practices </span><span style="font-family: 'Times New Roman'; font-size: 12pt;" class="">of other countries, including third-party dumping and state-owned enterprises. We should assure
that there is equal access and reciprocity in government procurement and agriculture.</span></b></p></div></div></div></div><div class="page" title="Page 3"><div class="section" style="background-color: rgb(100.000000%, 100.000000%, 100.000000%)"><div class="layoutArea"><div class="column"><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">These are just a few examples of key priorities for the United States – but I think they are
sufficient to show that our task is a very difficult one. On the other hand, the stakes are high for
all of our citizens and the benefits of a good agreement can be substantial.
</span></p><p class=""><span style="font-size: 12.000000pt; font-family: 'Times New Roman'" class="">My hope is that together we will produce a result which moves us to freer markets, fairer and
balanced trade, and stronger ties between our three countries. I look forward to working with
Secretary Guajardo and Minister Freeland on this very important effort. Thank you very much,
and now we will get down to work. </span></p>
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