Leaders of the generally pro-trade New Democrat Coalition warned the U.S. trade representative not to send an implementing bill for the new NAFTA to Congress on July 9. Rep. Derek Kilmer, chairman of the New Dems, and Rep. Gregory Meeks, co-chairman of the group's trade task force, spoke to reporters July 8 about why they sent a letter that day to USTR warning him off.
Even as one panelist said the changes to NAFTA won't really affect her Fortune 500 company, other panelists at the American Association of Exporters and Importers Annual Conference June 27 in Washington agreed that the deal's rewrite is important for the precedent it sets in future trade negotiations.
Undersecretary of Commerce for International Trade Gil Kaplan touted trade enforcement, the NAFTA rewrite, and tax cuts and deregulation in a keynote speech to the American Association of Exporters and Importers Annual Conference June 27 in Washington.
Trade lawyers talking about changes to NAFTA's rule of origin said they're fairly optimistic the trade deal rewrite will be ratified in Congress in 2019. But aside from the auto sector, which has a multiyear transition period, they're concerned that by the time ratification comes, there won't be time for importers and exporters to adjust by Jan. 1, 2020, when the replacement agreement is supposed to be in force.
International Trade Today is providing readers with some of the top stories for June 17-21 in case they were missed.
House Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., said after a June 25 hearing on Mexican labor reform that the Democrats asking for changes to the NAFTA rewrite are asking for changes that are "relatively narrow." "Our hope is we can move with dispatch, get our concerns resolved, strengthen the agreement and move forward," he said, adding that trade deal votes "never get easy, putting them off."
The day after the House working group had its first meeting to hammer out changes to the U.S.-Mexico-Canada Agreement, the renegotiated NAFTA, Rep. Jan Schakowsky, D-Ill., Rep. Rosa DeLauro, D-Conn., a freshman Democrat from a swing district, one Republican and 12 other Democrats introduced a bill that seeks to shorten the biologics exclusivity period in U.S. law to five years. The new NAFTA requires Mexico to raise its exclusivity period from five to 10 years, and Canada to raise its period from eight to 10 years. Current U.S. law is 12 years.
Trade groups that are lobbying House members to ratify the new NAFTA say they are trying to talk through concerns, and the National Association of Manufacturers' representative said she's seeing positive momentum.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, who's been working for months on a compromise bill to address national security tariffs, said that an introduction won't happen until after the August recess. "We're trying to get a consensus on [Section] 232s, that isn't the easiest thing," he said. "But we're making some progress." He said, speaking to reporters on June 19, that he'd had meetings on the bill that day.
The Mexican Senate voted to ratify the U.S.-Mexico-Canada Agreement on June 19, positioning Mexico to become first of the three countries to approve the renegotiated NAFTA. There have been some initial movements toward consideration of the deal by the U.S. Congress, and Canada is seen as likely following the U.S.'s lead before its legislature gets fully engaged (see 1906110040).