Reps. DeLauro, DeFazio Outline Elements Trump Should Seek in NAFTA Renegotiations
Two trade-focused House Democrats outlined elements they hope President-elect Donald Trump will address as part of his expected renegotiation of NAFTA on Jan. 3. Rep. Rosa DeLauro, D-Conn., wrote a letter (here) to Trump calling for future talks to prioritize the needs of workers and their communities ahead of special-interest considerations “that now dominate U.S. trade policymaking.” Among the most significant suggestions were incorporation of a tripartite mechanism to confront currency manipulation by China and other large state exporters. Special interests “that have rigged past trade agreements” are already pursuing special protections and monopolies through a renegotiated NAFTA, including walling off pharmaceutical companies from market competition that brings consumer prices down, she wrote. DeLauro proposes that parties to trade pact talks make their negotiating texts public after every round of discussions, and invite public comment.
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Trump should also implement a "simple rule" through NAFTA that "imported products must meet the same rules as domestic products," she said. A renegotiation should also remove rules that require the U.S. government to waive its “Buy America” obligations and “buy local procurement preferences,” as well as establish new rules that raise Mexican wages, DeLauro said. “To ensure that foreign firms do not try to undermine these basic principles, NAFTA renegotiation must include a new ‘carve out’ protecting non-discriminatory domestic regulatory policies so that the U.S. Congress, state legislatures, and courts decide U.S. law, not foreign trade tribunals.” Meanwhile, Rep. Peter DeFazio, D-Ore., called for "strong rules of origin on cars, auto parts and other manufactured goods" among necessary provisions for an updated NAFTA (here). Also important are "strict, enforceable" counter-currency manipulation provisions, and removing provisions that "undermine 'Buy America'" procurement policies, he said.