<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class="">INSIDE US TRADE<div class=""><br class=""></div><div class=""><div style="border-style: none none solid; border-bottom-color: rgb(204, 204, 204); border-bottom-width: 1pt; padding: 0in 0in 3pt; background-color: white;" class=""><h3 style="margin-right: 0in; margin-left: 0in; font-size: 13.5pt; font-family: 'Times New Roman', serif; margin-bottom: 7.5pt; border: none; padding: 0in;" class=""><span style="color: rgb(51, 51, 51); font-family: Arial, sans-serif; font-size: 22pt; orphans: 2; widows: 2;" class="">Levin, Kind warn Trump against forcing a choice between NAFTA 2.0 or no NAFTA</span></h3></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; background-color: white;" class=""><span style="font-size: 9pt; font-family: Arial, sans-serif;" class="">May 08, 2018<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">House Ways & Means Committee Democrats Sandy Levin (MI) and Ron Kind (WI) warned President Trump on Tuesday that initiating the NAFTA withdrawal procedure at the same time he sends Congress a NAFTA 2.0 deal -- essentially leaving lawmakers to choose his new deal or no deal at all -- would be unacceptable.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">“As active members of the Ways and Means Subcommittee on Trade, we write to express our concerns about reports of your Administration’s attempt to finalize a renegotiated NAFTA -- in particular attempting to force Congressional action through the threat of withdrawal -- could jeopardize such a process,” <a href="https://levin.house.gov/sites/levin.house.gov/files/documents/Resources/pdf/20180508letter_LevinKind_to_POTUS_RE_newNAFTA.pdf" style="color: purple;" class=""><span style="color: rgb(0, 102, 204); border: 1pt none windowtext; padding: 0in;" class="">the letter</span></a> reads.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">“A new NAFTA should pass Congress based on its merits and not on the threat of withdrawing from the existing agreement,” the lawmakers continue.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Sources on Capitol Hill and former congressional staffers have speculated that Trump could trigger the withdrawal process if his administration believed a new deal worked out by U.S. Trade Representative Robert Lighthizer could not win congressional approval without the added leverage of a choice between it and no NAFTA at all.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Those sources, however, added that Democrats could opt to try to pin the economic turmoil that would follow a NAFTA withdrawal -- including a shock to the stock market -- on Trump and his team.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">“Democrats could force Trump to own the economic disaster of withdrawal,” one source said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Kind and Levin suggested that strategy would be the one they would choose if Trump presented them with a take-it-or-leave-it deal. They also reminded Trump that the power to regulate commerce with foreign nations rests in the hands of Congress, and while some of that authority has been delegated to the executive branch, an all-or-nothing approach could result in that authority being taken away.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">“It is our view that using withdrawal to force Congress to act on a potentially flawed new NAFTA is a violation of the delicate balance between the executive and legislative branches carefully crafted over decades -- and a false choice,” the letter said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">“The authority over foreign commerce lies with Congress and any decision to change U.S. law -- no matter the subject -- must pass both the House and the Senate. Any attempt to hold Congress hostage would threaten your Administration’s negotiating authority and only serve to sow chaos in the U.S. economy,” the letter continues.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Kind and Levin also said there had been “incomplete information sharing with both the House Ways and Means Committee and the House Advisory Group on Negotiations."<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Ways & Means ranking member Richard Neal (D-MA) and trade subcommittee ranking member Bill Pascrell (D-NJ) last month requested that Chairman Kevin Brady (R-TX) convene a HAGON meeting with Lighthizer. Brady has requested a meeting, sources said, but one has not been scheduled. Lighthizer is seeking to conclude a NAFTA deal within two weeks.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Lighthizer and his counterparts from Mexico and Canada reconvened in Washington, DC, on May 7 to hold a new slate of minister-level talks in hopes of sealing a deal. Auto rules of origin continue to be the main sticking point, along with rules on investor-state dispute settlement, a five-year sunset clause and labor provisions, sources said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">The intellectual property chapter -- <a href="https://insidetrade.com/node/162956" style="color: purple;" class=""><span style="color: rgb(0, 102, 204); border: 1pt none windowtext; padding: 0in;" class="">a key portion of the deal</span></a> for some stakeholders and lawmakers -- also remains <a href="https://insidetrade.com/node/162891" style="color: purple;" class=""><span style="color: rgb(0, 102, 204); border: 1pt none windowtext; padding: 0in;" class="">severely underdeveloped</span></a>, according to stakeholders.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif; background-color: white;" class=""><span style="font-size: 11pt; font-family: 'Trebuchet MS', sans-serif;" class="">Last week, Lighthizer said NAFTA could be on “thin ice” if a deal was not stuck within two weeks of May 7. His urgency stemmed from his desire to present a deal to the current Congress because he believes a new Congress would have different priorities that might result in slimmer chances of a new deal's approval. -- <em class=""><span style="border: 1pt none windowtext; padding: 0in;" class="">Jack Caporal </span></em>(<a href="mailto:jcaporal@iwpnews.com" style="color: purple;" class=""><span style="color: rgb(0, 102, 204); border: 1pt none windowtext; padding: 0in;" class="">jcaporal@iwpnews.com</span></a>)</span></div></div><div class=""><br class=""></div><div class=""><br class=""><div class="">
<span class="Apple-style-span" style="border-collapse: separate; border-spacing: 0px;"><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; " class=""><div class="">Arthur Stamoulis</div><div class="">Citizens Trade Campaign</div><div class="">(202) 494-8826</div><div class=""><br class=""></div></div></span><br class="Apple-interchange-newline"></span><br class="Apple-interchange-newline">
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