Homehttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/Worldhttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/Review of NAFTA replacement heads to Congress amid ongoing border fight
Review of NAFTA replacement heads to Congress amid ongoing border fight
The International Trade Commission is due to submit its review of the economic impacts of Trump's US-Mexico-Canada Agreement to Congress by Friday. It will examine the deal's effects sector-by-sector, as well as its impacts on gross domestic product, exports and imports, employment, and American consumers.
Three GOP Hill staffers with knowledge of the situation customs CNN they were expecting the Report to be submitted to Congress on Thursday afternoon, requesting anonymity because they were not authorized to speak publicly about the report and its timing.
Inside US trade first reported analysis would be delivered Thursday
A negative or lackluster analysis could play a key role in cementing congressional opinion against the deal. Trump needs Democratic lawmakers in the House to ratify his rebranded USMCA, which he has referred to as "probably the largest trade deal ever made."
Democrats have been dissatisfied with Trump's deal, arguing it does not go far enough to enforce new labor and environmental protection. House Speaker Nancy Pelosi and some of her colleagues have even pushed Trump's trade team to reopen the negotiations, which lasted more than a year and almost collapsed on several occasions, in order to make substantive changes related to enforcement and drug pricing. it's anything like and International Monetary Fund study released last month, the ITC report won't make Trump's sales job any easier. That study found the USMCA's impact on real GDP would be trivial and could not even be for the United States if Trump's tariffs on steel and aluminum remain in place. Canada and Mexico, along with US lawmakers from both parties, have been called for Trump to end the tariffs before the trilateral deal is ratified
The IMF economists also indicated auto companies could consider Trump's new auto manufacturing and minimum wage rules too costly to comply with, leading them to relocate outside of NAFTA and simply pay America's flat tariff of 2.5% on auto imports instead
Congressional staff will receive a briefing from the ITC about the report after its release.
ITC reports have been Uninspiring in the past – President Barack Obama's Trans Pacific Partnership, which didn't help in his quest to win allies at Congress. Trump scrapped America's involvement in the deal upon entering office.
Proponents of Trump's USMCA, such as Senate Finance Committee Chairman Chuck Grassley, argue the ITC review cannot adequately take into account qualitative changes to policy, such as new digital trade and intellectual property rules. -down investor state dispute settlement system ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/190118135428-01-china-trade-file-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>
] John Murphy, senior vice president of international policy at the US Chamber of Commerce, wrote on Tuesday that lawmakers should keep that dynamic in mind when considering the ITC report. He said that unique new trade agreements, Trump's USMCA is a renegotiated version of the 25-year-old NAFTA, which already implemented sweeping tariff reductions.
"Historically, the economic effects of tariff elimination have been central to these ITC reports. In this case, the USMCA eliminates some remaining Canadian barriers facing US dairy and poultry exports, but the bottom line is that there just aren't many tariffs left to cut, "Murphy wrote.
" However, the members of Congress reviewing the ITC report and considering their vote on the USMCA should look at the big picture. Liberalized trade with Canada and Mexico has been tremendously important to the US economy , "he added.
Officials in Canada and Mexico have pushed back on the idea of reopening the agreement, which was signed in November. "Reopening it is as good as killing it," said Jesús Seade, Mexican foreign affairs undersecretary for North America, this month in response to Pelosi, according to Roll Call.
Other Democrats have held back on announcing a position one way or the other, waiting to read the ITC report.