Deal on U.S.-Mexico-Canada Trade Pact Takes Shape, Pelosi Says
November 14 2019 - 4:18PM
Dow Jones News
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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