North American Free Trade Agreement

Democrats' concerns about enforceability in the U.S.-Mexico-Canada Agreement could be addressed by strengthening dispute settlement mechanisms via implementing legislation or a statement of administrative action, Mexico's former chief USMCA negotiator Kenneth Smith Ramos told Inside U.S. Trade.

Labor legislation under consideration in the Mexican Congress fails to meet the requirements of the U.S.-Mexico-Canada Agreement, according to a letter House Democrats Bill Pascrell (NJ) and Rosa DeLauro (CT) plan to send to U.S. Trade Representative Robert Lighthizer in the coming days.

Reps. Tom Reed (R-NY) and Will Hurd (R-TX) said this week that Trump administration officials have told them a U.S.-China deal is close, giving them hope that a comprehensive deal could be reached before debate over the U.S.-Mexico-Canada Agreement begins in earnest.

Despite mounting enforcement concerns among Democrats, several Republican lawmakers said this week that the U.S.-Mexico-Canada Agreement should be passed by the summer.

Ways & Means trade panel ranking member Vern Buchanan said he was “optimistic. We've got a lot of momentum. [Lighthizer] was there to talk about a meeting with Democrats. It seems like there's some momentum there as well.”

After fielding several concerns from Democratic lawmakers, the Office of the U.S. Trade Representative on Monday rebutted claims that provisions in the U.S.-Mexico-Canada Agreement would lead to higher drug prices for U.S. consumers.

Yerxa: “Both are bad, but quotas introduce a number of elements beyond just simple tariffs that have to do with unpredictability and even being able to get your products in under any circumstances. How they’re administered, who administers them, the fairness of them, all the rest.”

As Mexico's government works to implement a package of labor reforms called for in the U.S.-Canada-Mexico Agreement, several different proposals are under consideration in the Mexican Congress -- and opposition in the business community is mounting.

Kenneth Smith Ramos suggests the battle over the deal's ratification could include requests for “concessions that have nothing to do with the USMCA,” such as tax policy changes or an increase in the federal minimum wage.