While Democrats Drag Their Feet, Numerous Associations, Automakers, Farmers, And Small Businesses Have All Come Out In Support Of The USMCA
WHILE PRESIDENT TRUMP PUSHES FOR CONGRESS TO RATIFY THE USMCA, NANCY PELOSI AND DEMOCRAT LEADERSHIP CONTINUE TO STONEWALL PROGRESS
This month, President Trump asked Democrat leaders to work with Congress and the White House to pass the United States-Mexico-Canada (USMCA) trade agreement.
Democrat leadership has continually stonewalled approval for USMCA with Rep. Nancy Pelosi (D-CA) saying her caucus would not consider USMCA for a vote until Mexico changes its labor laws and Sen. Chuck Schumer (D-NY) saying there were many 'outstanding issues' before Democrats would support the deal.
DEMOCRATS' INTRANSIGENCE ON USMCA COMES DESPITE WIDESPREAD SUPPORT AND PRAISE FOR THE TRADE DEAL FROM INDUSTRY LEADERS, ASSOCIATIONS AND SMALL AND MEDIUM BUSINESSES
Nearly 400 companies and associations have endorsed the USMCA Agreement and joined a coalition working to pressure Congress to support the deal.
Through USMCA, U.S. dairy producers will receive increased access to Canada's dairy market.
The National Milk Producers Federation and the U.S. Dairy Export Council applauded the trade deal for strengthening dairy export prospects throughout the North American Region.
Through USMCA, the U.S., Canada and Mexico have agreed to stronger rules of origin in manufacturing standards which will incentivize and preserve manufacturing production within North America.
The USMCA made supporting small and medium-sized enterprises (SMEs) a priority and will cut red tape for SMEs and facilitate the participation of U.S. and Mexican SMEs in government procurement.
The Trump Administration has ensured the USMCA is a modern 21st century trade agreement that provides strong, effective protection and enforcement of intellectual property rights, trade secrets and facilitates trade in the digital era.
The Wall Street Journal reported the Trump Administration has 'written a deal highly appealing to many business groups, especially in the provisions aimed at 'modernizing' the pact that hasn't been amended since it took effect in 1994.'
PRESIDENT TRUMP AND HIS ADMINISTRATION HAVE PUSHED FOR CONGRESS TO RATIFY THE USMCA BUT DEMOCRATS ARE STONEWALLING PROGRESS ON THE DEAL
On May 21, 2019, President Trump Sent A Letter To Democrat Leadership Asking Them To Pass The USMCA Trade Deal
President Trump: 'Before We Get To Infrastructure, It Is My Strong View That Congress Should First Pass The Important And Popular USMCA Trade Deal.' ''Before we get to infrastructure, it is my strong view that Congress should first pass the important and popular U.S.M.C.A. trade deal,' Mr. Trump wrote in a letter to Ms. Pelosi and Mr. Schumer, using the initials for the United States-Mexico-Canada Agreement. 'Once Congress has passed U.S.M.C.A.,' he added, 'we should turn our attention to a bipartisan infrastructure package.'' ( The New York Times, 05/21/19)
Trump: 'This Path-Breaking Deal, Already Agreed To By The Governments Of Canada And Mexico, Will Boost Employment Growth And Create Millions Of High-Wage Jobs.' ''This path-breaking deal, already agreed to by the governments of Canada and Mexico, will boost employment growth and create millions of high-wage jobs,' he wrote. 'It will benefit farmers, manufacturing workers, unions and businesses throughout our great nation.'' ( The New York Times , 05/21/19)
Over The Past Months, Nancy Pelosi And Democrat Leadership Have Continued To Hold Up Progress On Approving The USMCA Trade Agreement
As Of April 2019, The United States-Mexico-Canada (USMCA) Trade Agreement Hit A Roadblock To Its Passage As Democrats And Labor Groups Demanded Changes, Which Dimmed 'Its Chances Of Passage Before Next Year's Presidential Election.' 'President Trump's push to revamp North America's trade rules is hitting a roadblock in Washington as Democrats and labor groups demand changes, dimming its chances of passage before next year's presidential election.' ( The Wall Street Journal , 04/28/19)
The Wall Street Journal Reported That Democrats May Be Seeking To Deny The President A Political Win Or At Least To 'Exact A Heavy Price For Advancing The Deal.' 'But with the U.S. election season approaching, some Republicans and trade experts said Democrats may be seeking in part to deny Mr. Trump a political win-or at least to exact a heavy price for advancing the deal.' ( The Wall Street Journal , 04/28/19)
Speaker Of The House, Rep. Nancy Pelosi (D-CA) Compared The USMCA To Putting 'A Little Syrup On Top' Of NAFTA And Serving it Back To The People. 'The Administration's approach to USMCA cannot be responding to the problems with NAFTA by putting a little syrup on top and serving it back to America's workers. #PostLive' ( Twitter , 05/08/19)
Pelosi Said Democrats Will Not Consider The USMCA For A Vote Until Mexico Makes Changes To Its Labor Laws. 'Speaker Nancy Pelosi indicated on Tuesday the House will not consider President Donald Trump's new North American trade pact until after Mexico has passed and implemented its major labor law reforms. In an interview with POLITICO Playbook, the California Democrat explained that Mexico must pass labor law reforms required under the replacement deal for NAFTA - and she wants to see the implementation before the House considers backing the new deal, a top Trump administration legislative priority.' ( Politico , 04/02/19)
Sen. Chuck Schumer (D-NY) Said There Were Many 'Outstanding Issues Before Democrats Would Support USMCA.' 'I've always said we should be focusing efforts on China-not Mexico, Canada, Europe. It is good these tariffs will be lifted. We should urge allies to join us in preventing China's predatory practices. There are still many outstanding issues before Democrats would support USMCA.' (Twitter , 05/17/19)
DEMOCRAT INTRANSIGENCE ON USMCA COMES DESPITE WIDESPREAD SUPPORT AND PRAISE FOR THE TRADE DEAL
The USMCA Trade Agreement Is A Fulfillment Of President Trump's Campaign Promise To Renegotiate NAFTA And Has Received Widespread Support Including From Numerous Businesses And Associations
On The Campaign Trail, Donald Trump Called The North American Free Trade Agreement 'A Total Disaster For The U.S.' CANDIDATE DONALD TRUMP: 'NAFTA, as an example, has been a total disaster for the U.S. and has emptied our states of our manufacturing and our jobs. Never again. Only the reverse will happen. We will keep our jobs and bring in new ones. There will be consequences for companies that leave the U.S. only to exploit it later.' ( Donald Trump , 04/27/16)
Trump Pledged 'We Are Going To Renegotiate NAFTA.' TRUMP: 'NAFTA, signed by Bill Clinton. He never suffered the ravages, because he signed it, then he got out and other people did suffer with it. But we are going to renegotiate NAFTA, and if they don't want to make a great deal for us so we get our jobs back, at least a lot of them, if we can't make a great deal - and she can't do that, by the way, if she wanted to.' ( Donald Trump , 08/5/16)
Trump: My Plan 'Includes A Total Renegotiation Of NAFTA So Our Jobs Can Come Back.' TRUMP: 'My plan also includes a total renegotiation of NAFTA so our jobs can come back. [applause] And if we can't make a much, much better deal than we have right now, we will walk. [applause]' ( Donald Trump , 8/19/16)
On Sunday, September 30, 2018, The United States Reached A Significantly Revised North American Trade Deal With Canada And Mexico. 'On Sunday night, President Trump got his wish for a significantly revised North American trade deal. After more than a year of intense negotiations, the United States, Canada and Mexico reached an agreement to update the North American Free Trade Agreement, the 1994 pact that governs more than $1.2 trillion worth of trade among the three nations.' ( The Washington Post , 10/01/18)
The New Deal Was Titled The United States-Mexico-Canada Agreement Or USMCA. 'New name: Goodbye NAFTA. The new deal will be known as the United States-Mexico-Canada Agreement or USMCA. Trump, who had long disdained NAFTA, had suggested he might call it the 'USMC,' in honor of the U.S. Marine Corps, but in the end, USMCA won out.' ( The Washington Post , 10/01/18)
Thus Far, Nearly 400 Companies And Associations Have Endorsed The USMCA Agreement And Joined The USMCA Coalition Which Works To Pressure Congress To Support The Deal. (USMCA Coalition, Accessed 05/28/19)
USMCA Coalition: 'We Are A Group Of U.S. Companies And Associations Working To Secure Congressional Approval Of The United States-Mexico-Canada Agreement (USMCA). 'We are a group of U.S. companies and associations working to secure congressional approval of the United-States-Mexico-Canada Agreement (USMCA).' ( USMCA Coalition, Accessed 05/28/19)
'The USMCA Preserves And Strengthens The benefits Of North American Trade for American Workers, Farmers, Businesses, And Consumers.' 'The USMCA preserves and strengthens the benefits of North American trade for American workers, farmers, businesses, and consumers.' ( USMCA Coalition, Accessed 05/28/19)
The USMCA's Provisions On Dairy Have Received Widespread Support From Farmers And Dairy Associations Across The Country
Through The USMCA, Canada Has Agreed To Increase The United States' Access To Canadian Dairy Markets. 'Key Achievement: Increasing Dairy Market Access. In addition to the current exports of dairy products that the United States makes to Canada of $619 million in 2017, Canada will provide new tariff rate quotas exclusively for the United States.' ( USTR , Accessed 5/27/19)
Canada Has Also Pledged To Eliminate Milk Price Classes For Its Pricing System. 'Key Achievement: Canada's Milk Class Pricing System Six months after entry into force of the USMCA, Canada will eliminate milk price classes 6 and 7. Canada will ensure that the price for skim milk solids used to produce nonfat dry milk, milk protein concentrates, and infant formula will be set no lower than a level based on the United States price for nonfat dry milk.' ( USTR , Accessed 5/27/19)
The National Milk Producers Federation (NMPF) And The U.S. Dairy Export Council (USDEC) 'Commended The Trump Administration For Signing The U.S.-Mexico-Canada Agreement.' 'The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commended the Trump Administration today for signing the U.S.-Mexico-Canada Agreement (USMCA), which had been agreed to in principle on Sept. 30.' ( National Milk Producers Federation , 11/30/18)
The NMPF Applauded The USMCA For 'Incorporating New Commitments To Strengthen U.S. Dairy Export Prospects Throughout The North American Region.' 'The USMCA will benefit America's dairy sector by maintaining the overall U.S.-Mexico trading structure of the 24-year-old North American Free Trade Agreement (NAFTA), while incorporating new commitments to strengthen U.S. dairy export prospects throughout the North American region. Thanks to NAFTA, Mexico is currently the largest export destination for U.S. dairy products, accounting for $1.2 billion in sales last year. The United States commands a dominant market share in Mexico, with sales that amount to three quarters of its imported dairy products.' ( National Milk Producers Federation , 11/30/18)
NMPF And USDEC Praised U.S. Negotiators For Addressing Canada's Pervasive Trade-Distorting Practices And Reforming Its Controversial Dairy Pricing System. 'Although the U.S. dairy industry had sought deeper market expansion and stronger disciplines from Canada on dairy, NMPF and USDEC praised U.S. negotiators for their ardent efforts to address Canada's pervasive trade-distorting practices. The trade deal includes reforms to Canada's controversial dairy pricing system and some additional market access - key objectives of the U.S. dairy sector.' ( National Milk Producers Federation , 11/30/18)
Jim Mulhern, President And CEO Of NMPF, Thanked The Trump Administration For 'Continually Raising Our Issues Of Concern And Fighting For A Better Agreement With Canada.' ''We appreciate the Trump Administration for continually raising our issues of concern and fighting for a better agreement with Canada,' said Jim Mulhern, president and CEO of NMPF.'( National Milk Producers Federation , 11/30/18)
Dairy Herd Management: 'Dairy Farmers Across U.S. Pleased With U.S.-Mexico-Canada Agreement' ( Dairy Herd Management , 10/03/18)
Wisconsin Dairy Cooperative, Edge Dairy Farmer Cooperative, And The Wisconsin Farm Bureau Federation Both Voiced Support For USMCA. 'Wisconsin dairy cooperative Edge Dairy Farmer Cooperative and the Wisconsin Farm Bureau Federation both voiced support for the agreement.'( Dairy Herd Management , 10/03/18)
Ken Nobis, President Of The Michigan Milk Producers Association, Said USMCA Changes Will Help Prevent Canadian Dumping And Aid Domestic Prices. 'Ken Nobis, president of the Michigan Milk Producers Association, thinks the change in Class 7 policy by Canada will help prevent dumping by the country and aid domestic prices.' ( Dairy Herd Management , 10/03/18)
The USMCA Has Been Praised For Its Rules Of Origin Standards Which Will Incentivize Regional Manufacturing And Investment
Through The USMCA, The U.S., Mexico And Canada Have Agreed To Stronger Rules Of Origin In Manufacturing Standards For Various Products Including Autos And Automobile Parts. 'The United States, Mexico, and Canada have agreed to stronger rules of origin that exceed those of both NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including for autos and automobile parts and other industrial products such as chemicals, steel-intensive products, glass, and optical fiber. This deal exceeds NAFTA 1.0 and the TPP by establishing procedures that streamline certification and verification of rules of origin and that promote strong enforcement. This includes new cooperation and enforcement provisions that help to prevent duty evasion before it happens. 'The new rules will help ensure that only producers using sufficient and significant North American parts and materials receive preferential tariff benefits.' ( USTR , Accessed 05/27/19)
The USMCA's Regional Value Content Rule Requires That 75% Of Auto Content Be Made In North America, Helping To Incentivize Up To Billions Annually And Preserve Auto Production Within North America. 'Key Achievement: Increasing Regional Value Content Rule . This deal encourages United States manufacturing and regional economic growth by requiring that 75 percent of auto content be made in North America. Help to incentivize up to billions annually. Help to preserve and re-shore vehicle and parts production in the United States. Transform supply chains to use more United States content, especially content that is key to future automobile production and high-paying jobs. Close gaps in the current NAFTA agreement that incentivized low wages in automobile and parts production.' ( USTR , Accessed 05/27/19)
The New Labor Value Content Rule Requires 40-45% Of Auto Content Be Made By Workers Earning At Least $16 Per Hour, Ensuring U.S. Producers And Workers Are Able To Compete On An Even Playing Field. 'Key Achievement: Creating New Labor Value Content Rule. This deal uses trade rules to drive higher wages by requiring that 40-45 percent of auto content be made by workers earning at least $16 per hour. The rules will: Support better jobs for United States producers and workers by requiring that a significant portion of vehicle content be made with high-wage labor. Ensure that United States producers and workers are able to compete on an even playing field, and incentivize new vehicle and parts investments in the United States. Encourage more investment by auto companies in research and development in the region.' ( USTR , Accessed 05/27/19)
President Of The National Association Of Manufacturers, Jay Timmons, Called The Signing Of The USMCA A 'Landmark Milestone,' For American Manufacturing Workers. 'The signing of the USMCA is a landmark milestone for American manufacturing workers.' ( The National Association Of Manufacturers , 11/30/18)
Timmons: 'We Look Forward To Working With The Administration And Congress To Ensure The USMCA Is Implemented And Enforced In A Way That Empowers Manufacturers.' 'We look forward to working with the administration and Congress to ensure the USMCA is implemented and enforced in a way that empowers manufacturers in America to continue investing in our people and our communities.' ( The National Association Of Manufacturers , 11/30/18)
The National Association Of Manufacturers Reported The USMCA Would Level The Playing Field For U.S. Manufacturers By Raising Standards, Improving Transparency, Ending Anti-U.S. Discrimination From Foreign Governments And Supporting American Manufacturing Jobs. 'The United States-Mexico-Canada Agreement levels the playing field for U.S. manufacturers by raising standards, improving transparency, ending anti-U.S. discrimination from foreign governments, and supporting the two million American manufacturing jobs and 43,000 small- and medium-sized businesses that rely on trade with Mexico and Canada.' ( The National Association Of Manufacturers , Accessed 05/28/19)
The Association Of Equipment Manufacturers Said It Was 'Critical' That Congress Begin The Process Of Implementing The Agreement. 'For all of these reasons and more, it's critical for Congress to begin the process of implementing the agreement and for the President to remove the steel and aluminum tariffs on Canada and Mexico. That's the message AEM and its members continue to push to lawmakers, and it's the message of more than 200 companies and associations AEM recently joined with to form the USMCA coalition. It's also what we continue to tell elected officials as they take part in AEM's national grassroots campaign I Make America this year, when they visit AEM's member companies to hear directly from the 1.3 million men and women in our industry.' ( The National Association Of Manufacturers , 04/11/19)
80% Of Automotive Executives Said They Believed The USMCA Would Have A Positive Impact On Their Companies In The Long Term And More Than Half Said It Would Increase North American Vehicle Manufacturing. 'The majority (78%) of automotive executives feel that the changes required by USMCA will have a positive impact on their individual companies in the long term, and more than half (53%) feel USMCA will ultimately increase North American vehicle manufacturing and provide a net improvement for workers and consumers.' ( Forbes , 01/19/19)
Nearly 90% Of Executives Surveyed Agreed That The USMCA Will Increase Vehicle Manufacturing In North America. 'Secondly, the deal's fundamental goal is to increase vehicle manufacturing in North America, and our survey showed nearly universal agreement (89%) that this will happen. Most of these respondents believe this offers a net gain for U.S. workers. While higher costs are a downside, the respondents plan to explore changes to their supply chain and supplier base to mitigate these costs.' ( Forbes , 01/19/19)
Automakers Including Ford, General Motors, And Fiat Chrysler All Have Endorsed The USMCA. ( USMCA Coalition , Accessed 5/28/19)
Small And Medium Sized Businesses (SMEs) Have Also Praised The USMCA For Its Updated Provisions And The Incorporation Of SMEs Into The Procurement Process
The United States, Mexico And Canada Agreement Recognizes And Supports The Role Of Small And Medium Sized Businesses Within The USTR. 'The United States, Mexico, and Canada Agreement (USMCA) recognizes the fundamental role of small and medium-sized enterprises (SMEs) as engines of the North American economy.' ( USTR , Accessed 5/27/19)
The USMCA Will Work To Cut Red Tape At The Border And Bring Greater Ease And Reduce Costs For Cross Border Transactions. 'Key Achievement: Cutting Red Tape at the Border via Increased De Minimis Levels The Customs and Trade Facilitation Chapter includes new provisions that will help reduce costs and bring greater ease and predictability to cross-border transactions.' ( USTR , Accessed 5/27/19)
The USMCA Facilitates The Participation Of U.S. And Mexican SMEs In Government Procurement. ' Key Achievement: Promoting Small Business Participation in Government Procurement. The USMCA facilitates the participation of U.S. and Mexican SMEs in government procurement by providing notices of intended procurement in a single electronic portal, and encouraging the conduct of procurement by electronic means, thus increasing transparency and efficiency for small and medium-sized businesses.' ( USTR , Accessed 5/27/19)
The USMCA Eliminates Local Presence Requirements For Cross Border Service Providers, Benefitting Small Businesses By Removing Unnecessary Burden Of Opening A Foreign Office. 'Key Achievement: Supporting Cross Border Trade in Services for Small Business. The USMCA eliminates local presence requirements for cross-border service providers, benefitting small businesses by removing the unnecessary burden of opening a foreign office as a condition for doing business.' ( USTR , Accessed 5/27/19)
On February 13, 2019, The National Small Business Association (NSBA) Board Of Trustees Endorsed The USMCA. 'The National Small Business Association Board of Trustees recently endorsed the free trade agreement known as the U.S.-Mexico-Canada Agreement (USMCA.)' (NSBA, 02/13/19)
The NSBA Said They Were Pleased With Provisions Relating To Small Exporters And Said The Provisions Related To Small And Medium Sized Businesses Will Promote Growth. 'NSBA is pleased with the inclusion of Chapter 25 relevant to small exporters. This chapter of the USMCA promotes the growth of small and medium-size businesses, and establishes the 'Committee on SME issues.'' (NSBA, 02/13/19)
On February 25, 2019, The Small Business And Entrepreneurship Council (SBE) Joined The 'Pass USMCA Coalition.'' On February 13, a diverse group of trade associations, businesses, and advocacy groups launched the 'Pass USMCA Coalition,' an alliance advocating for the swift passage of the United States-Mexico-Canada Agreement (USMCA) by the 116th Congress. SBE Council is a member of this important coalition.' ( Small Business & Entrepreneurship Council , 02/25/19)
Karen Kerrigan, President And CEO Of the Small Business & Entrepreneurship Council, Said The USMCA Deal Is 'Chock Full Of Meaningful Provisions That Will Help American Small Businesses Boost Exports And Safeguard Their Intellectual Property.' 'The United States-Mexico-Canada Agreement (USMCA) was signed by President Trump and his fellow leaders at the G20 in Argentina. The accord modernizes the decades-old NAFTA and is chock full of meaningful provisions that will help American small businesses boost exports and safeguard their intellectual property (IP).' ( Fox Business , 01/22/19)
Kerrigan: 'The USMCA Would Greatly Benefit American Small Businesses And Encourage New Business Creation In America. Congress Should Waste No Time In Approving The Deal.' ' The USMCA would greatly benefit American small businesses and encourage new business creation in America. Congress should waste no time in approving the deal.'( Fox Business , 01/22/19)
The Trump Administration Has Been Widely Praised For Its Commitment To Modernizing USMCA And Creating A Trade Agreement Geared Towards Commerce In The 21st Century
The USTR Reported The USMCA Will Turn NAFTA Into A 21st Century, High-Standard Agreement. 'The United States, Mexico, and Canada have reached an agreement to modernize the 24-year-old NAFTA into a 21st century, high-standard agreement. The new United States-Mexico-Canada Agreement (USMCA) will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.' ( USTR , Accessed 5/27/19)
'The USMCA Provides Strong And Effective Protection And Enforcement Of IP Rights Critical To Driving Innovation, Creating Economic Growth And Supporting American Jobs.' 'The United States, Mexico, and Canada have reached an agreement on a modernized, high-standard Intellectual Property (IP) chapter that provides strong and effective protection and enforcement of IP rights critical to driving innovation, creating economic growth, and supporting American jobs.' ( USTR , Accessed 5/27/19)
'The USMCA Will Provide The Strongest Standards Of Protections For Trade Secrets Of Any Prior FTA.' 'Key Achievement: Strongest Standards of Protection for Trade Secrets of Any Prior FTA. In particular, the Chapter has the most robust protection for trade secrets of any prior United States trade agreement. It includes all of the following protections against misappropriation of trade secrets, including by state-owned enterprises: civil procedures and remedies, criminal procedures and penalties, prohibitions against impeding licensing of trade secrets, judicial procedures to prevent disclosure of trade secrets during the litigation process, and penalties for government officials for the unauthorized disclosure of trade secrets. The new Digital Trade chapter contains the strongest disciplines on digital trade of any international agreement, providing a firm foundation for the expansion of trade and investment in the innovative products and services where the United States has a competitive advantage.' ( USTR , Accessed 5/27/19)
The USMCA Includes The Stronger Provisions On Digital Trade Of Any International Agreement Which Will Support Internet-Enabled Small Businesses And E-Commerce Exports. 'Key Achievement: Supporting the 21st Century Economy. The USMCA includes a new chapter on digital trade that contains the strongest provisions of any international agreement, supporting internet-enabled small businesses and e-commerce exports.' ( USTR , Accessed 5/27/19)
National Retail Federation CEO, Matthew Shay: The Administration 'Should Be Applauded For Months Of Hard Work Aimed At Modernizing NAFTA For The 21st Century - A Goal Retailers Have Shared From The Start.' 'The administration, as well as officials from Canada and Mexico, should be applauded for months of hard work aimed at modernizing NAFTA for the 21st century - a goal retailers have shared from the start.' ( Business Insider , 10/1/18)
The Wall Street Journal : The Trump Administration Has 'Written A Deal Highly Appealing To Many Business Groups, Especially In The Provisions Aimed At 'Modernizing' The Pact That Hasn't Been Amended Since It Took Effect In 1994.' 'And while crafting the new Nafta in a way to try to draw labor support, the Trump administration has also written a deal highly appealing to many business groups, especially in the provisions aimed at 'modernizing' the pact that hasn't been amended since it took effect in 1994.' ( The Wall Street Journal , 10/1/18)