Senators Outline Preferences for NAFTA Talks Leading Up to USTR Release of Negotiating Objectives
Several senators submitted preferences for the upcoming NAFTA renegotiation to the Office of the U.S. Trade Representative leading up to the agency’s expected July 17 release of negotiating objectives for the agreement. Among the requests was a push for increased Canadian and Mexican de minimis thresholds. Others in separate letters to the USTR said NAFTA should address digital commerce and agricultural issues in North American trade.
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In a July 14 letter to U.S. Trade Representative Robert Lighthizer (here), 28 senators led by Jeanne Shaheen, D-N.H., and Rob Portman, R-Ohio, urged the Trump administration to focus on raising other countries’ de minimis thresholds, particularly those of Canada ($20) and Mexico ($50). U.S. small businesses face additional government red tape exporting to countries with low de minimis thresholds, the senators said. “For small businesses with limited time and resources, these burdens can be excessive and discourage them from exporting altogether,” they said.
The letter, which was copied to Commerce Secretary Wilbur Ross and Small Business Administration Administrator Linda McMahon, cited language in customs reauthorization legislation passed in 2016 that raised the U.S. de minimis level to $800 and urged USTR to encourage other countries to raise their de minimis values to “commercially meaningful” levels. Lighthizer told Congress last month he planned to raise the de minimis issue during the NAFTA talks (see 1706210045).
Addressing U.S. dairy market access in Canada and potato market access in Mexico, as well as Mexican low prices and dumping of tomatoes by Mexico, should be U.S. priorities in the NAFTA renegotiation as well, Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., and Sen. Gary Peters, D-Mich., said in a July 14 letter to Lighthizer (here). “Canada and Mexico consistently rank among the top destinations for agricultural products produced in Michigan, including corn, soybeans, dairy, and apples,” the senators wrote. “At a time when many Michigan farmers are struggling with low prices, it is especially critical that any renegotiated agreement does not jeopardize access to these important markets for Michigan farmers, ranchers, and producers.” Stabenow and Peters added market access with NAFTA partners has generally been beneficial for Michigan farmers.
Meanwhile, Senate Commerce Committee Chairman John Thune, R-S.D., and Sen. Ron Wyden, D-Ore., urged President Donald Trump to prioritize digital trade issues in a renegotiation of NAFTA as a way to “set the highest possible bar” for the internet’s economic potential. “Our opening position in negotiations for NAFTA 2.0 should be a strong defense of American interests, which means that we should not begin” with elements of the Trans-Pacific Partnership, the letter said (here). Trump withdrew the U.S. from the TPP in January (see 1701300020). USTR didn’t immediately comment.