Deal on U.S.-Mexico-Canada Trade Pact Takes Shape, Pelosi Says
15 November 2019 - 11:46AM
Dow Jones News
By Natalie Andrews and William Mauldin
WASHINGTON -- House Speaker Nancy Pelosi said that Democrats
were moving toward a deal with the Trump administration on a new
trade accord with Canada and Mexico, but progressive members of her
caucus are holding out for more protections for U.S. labor and
stronger enforcement provisions.
"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.
When the caucus met later Thursday, moderate freshman Democrats,
many facing tough races next year, pushed for approval of the
U.S.-Mexico-Canada Agreement, or USMCA. They said they rallied in
force to show Mrs. Pelosi she would have the support to bring the
measure to the House floor, even if it divided the caucus.
"We have to continue getting things done, even in this tough
environment. Especially in this environment," said Utah Rep. Ben
McAdams, a Democrat representing a district carried by Republican
President Trump.
Rep. Jan Schakowsky (D., Ill.), a progressive and a member of
the USMCA working group, stood up in the meeting and told the
caucus to wait, according to a lawmaker in the room. She said
lawmakers would be held accountable for their vote for years to
come.
"This is a legacy vote," she told reporters afterward. "Those
who are anxious just to move for something need to think about the
necessity for getting it right."
A Democratic staffer tried to play down the dispute, calling it
a family conversation and pointing out that families can
disagree.
The trade pact, if endorsed by Democrats and enacted by
Congress, would replace the North American Free Trade Agreement and
could be one of the few legislative accomplishments for this
Congress. If a final deal is struck it also would mark a major
legislative and trade-policy win for Mr. Trump, who vowed in his
2016 campaign to renegotiate or terminate Nafta.
Since Nafta passed in the Clinton administration, Democrats have
lost the support of union workers in places such as Pennsylvania,
Wisconsin and Michigan, in part because many jobs went overseas and
to Mexico. Those states were key to Mr. Trump winning in 2016,
partly because he promised to bring jobs back to the U.S. and boost
manufacturing.
Democratic aides and lawmakers say they still need the Trump
administration to put details on paper to resolve major areas of
concern for Democrats. Democrats are waiting on commitments from
U.S. Trade Representative Robert Lighthizer on requests to make the
deal more enforceable, a top issue for labor unions, according to a
senior 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 leads the negotiations.
Passage of the USMCA would bolster Mrs. Pelosi's claim that she
can pass legislation and investigate Mr. Trump for possible
impeachment at the same time.
For businesses, the pact would change Nafta very little overall
but provide some important rules for technology and pharmaceutical
companies that could be replicated in future agreements. USMCA
would give biologic drugs in North America at least 10 years of
intellectual-property protection from similar generic versions,
although Democrats have sought to change that provision due to
concerns over drug affordability.
A pact also would reassure farmers worried about Mr. Trump's
repeated threats to pull the U.S. out of Nafta, while American milk
producers would get additional access to Canada's tightly regulated
dairy market.
Car makers would face new rules on North American content
requirements and wages that could raise vehicle prices, but some
U.S. suppliers would benefit from the rules, as would auto-part
workers, economists say. Detroit auto makers have criticized some
provisions but aren't expected to oppose the deal.
House Democrats have been going back and forth with Mr.
Lighthizer, the Trump appointee who negotiated USMCA with Canada
and Mexico, on provisions in the pact since June.
Democratic negotiators have worked down to the details on their
agreement with the administration, though it could still get
derailed, a Democratic aide said. Democrats' key focus has been
making USMCA more enforceable for labor and environmental
rules.
Meanwhile, a big 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 on before backing the
deal.
USMCA would raise labor standards in an effort to improve
working conditions in Mexico while its auto-industry rules aim to
raise wages there. While labor groups including the International
Brotherhood of Teamsters said it is an improvement over Nafta, the
new deal has been widely criticized for not having stronger
enforcement provisions to prevent U.S. companies from across the
border to cut costs.
--moving
Write to Natalie Andrews at Natalie.Andrews@wsj.com and William
Mauldin at william.mauldin@wsj.com
(END) Dow Jones Newswires
November 14, 2019 19:31 ET (00:31 GMT)
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