By Natalie Andrews 

WASHINGTON -- House Speaker Nancy Pelosi said Democrats are moving toward a deal with the Trump administration on a renegotiated trade agreement with Canada and Mexico, which could result in a victory for President Trump and be one of the few bipartisan legislative accomplishments of this Congress.

"I do believe that if we can get this to the place it needs to be, which is imminent, that this can be a template for future trade agreements. A good template," Mrs. Pelosi said Thursday.

Mrs. Pelosi said she would like to see it done before the House adjourns for Christmas. "I'd like to see us get it done this year," she said. "I mean, that would be my goal."

The deal, known as the U.S.-Mexico-Canada Agreement, or USMCA, would replace the North American Free Trade Agreement.

House Democratic lawmakers have been going back and forth with U.S. Trade Representative Robert Lighthizer on provisions in the pact since the summer.

Negotiators are down to the details on the agreement, though it could still get derailed, a Democratic aide said. The key focus has been making USMCA more enforceable, a primary objection that Democrats have to the agreement that was negotiated by Mr. Trump.

Democrats are still waiting on commitments from Mr. Lighthizer in their requests to make the deal more enforceable, which is a top issue for labor unions, according to a different Democratic aide.

"We want to iron out two or three bottom-line issues and present them to the USTR and then proceed from there," said Ways and Means Chairman Richard Neal (D., Mass.), who has been leading the negotiations.

A key sticking point will be getting support from labor leaders who have said they want to see what changes House Democrats and Mr. Lighthizer can agree to before showing support for the deal.

USMCA would boost labor standards in an effort to improve working conditions in Mexico and tighten rules for auto-industry trade with the aim of raising wages.

While labor groups including the International Brotherhood of Teamsters said it is an improvement over the North American Free Trade Agreement that it would replace, the new deal has been widely criticized for not having stronger enforcement provisions to prevent U.S. companies from moving operations across the border to cut costs.

Labor advocates opposed Nafta in 1993 because they feared that jobs would leave the U.S. for Mexico and elsewhere. Democrats who supported the agreement feel burned because that is what happened, and it has cost the party some critical support.

Many unionized workers in places such as Pennsylvania, Wisconsin and Michigan backed Mr. Trump in 2016 in part because he promised to bring jobs back to the U.S. and boost manufacturing.

Democratic House members in competitive districts have pushed for the deal, in part as a way to show they can work with Mr. Trump when it benefits their constituents. The agreement mandates that 75% of vehicles be assembled in Mexico, the U.S. or Canada to qualify for zero tariffs, up from 62.5% under Nafta. It also gives American dairy farmers more access to Canada's market.

Many lawmakers see the deal's window for passage in Congress narrowing, given that the presidential race next year will likely diminish chances for compromise. Democrats will be less likely to buck their party's nominee, and so far top-tier candidates Sen. Elizabeth Warren (D., Mass.) and former Vice President Joe Biden have called for changes to USMCA.

Write to Natalie Andrews at Natalie.Andrews@wsj.com

 

(END) Dow Jones Newswires

November 14, 2019 16:03 ET (21:03 GMT)

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