Chamber of Commerce Says New NAFTA Has 'Significant' Democratic Support
At a press conference attended by dozens of pro-USMCA trade groups, U.S. Chamber of Commerce CEO Thomas Donohue said his group is optimistic that the trade pact will get a vote in September. Donohue held his fingers an inch apart and said, "Lighthizer and Nancy Pelosi are this close," he said, referring to negotiations on changes to the U.S.-Mexico-Canada Agreement between U.S. Trade Representative Robert Lighthizer and the Speaker of the House. Donohue said the Chamber is "very, very willing to move forward" with small fixes, which he characterized as "ornaments on the tree."
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The Chamber and other trade groups described the outreach they are doing on Capitol Hill to tell staffers and members why USMCA is important to the companies or farms represented by their organizations. Michael Dykes, CEO of the International Dairy Foods Association, said that on July 25, his group visited all 53 offices in California's House delegation, sending the message that 40 percent of dairy exports go to Mexico and Canada. "I'm with Tom Donohue," he said. "There's a lot of bipartisan support for this agreement."
Lobbying will continue during the August break, at state fairs, with rallies, and with companies talking to their local representatives.
Matt Blunt, the president of the trade group that represents Detroit's Big Three automakers, said the changes to rules of origin will be challenging to meet, but that they are not so stringent that they endanger North American competitiveness in auto manufacturing. He noted that the auto industry is responsible for $140 billion in annual exports -- more than any other traded product.
Blunt said his group is talking with the United Autoworkers, telling them "it makes a number of improvements in area after area they care deeply about." He said all three of his companies decided to add investment in the U.S. to comply with the new rules of origin under USMCA -- and it's not just for imported cars. In order to qualify for a longer transition, even U.S.-assembled vehicles have to increase North American content. But so far, the UAW has said that they are urging members to vote no if the pact comes forward without any changes to enforcement. "I can't imagine they'd do anything until the working group's completed their work with the administration," Blunt said in a brief interview with International Trade Today after the press conference.
He said those Americans who want better conditions and pay for workers in Mexico should recognize that the labor reforms Mexico is undertaking can't be achieved overnight.
"We would just encourage everybody to think through the implications," said Blunt, who is a former governor of Missouri. "If you don't approve USMCA, these changes may never occur. The only way to ensure that they may occur is through USMCA, and with adequate enforcement provisions and U.S. assistance, we think they can achieve this new labor structure in Mexico."