VI Legislative Update – Business, Manufacturing and Agricultural Groups Continue to Push for USMCA

Members and advocates of the U.S.-Mexico-Canada Agreement (USMCA) have had a busy two weeks as stakeholders descended on the Hill urging their congressional representatives to support the trade deal. As the 5-week August recess begins, proponents will have ample opportunities to continue advocating for the trade pact at events and meetings in their home districts.

Earlier last week, more than 600 business and agricultural groups, including the Vinyl Institute (VI), sent a letter to members of Congress pushing for USMCA approval “as soon as possible.” VI President and CEO Ned Monroe joined Tom Donohue, president and CEO of the U.S. Chamber of Commerce, along with leaders of several other associations, at a press conference encouraging passage of the USMCA last week. On top of these efforts, VI and 90 other members of the USMCA Coalition met with more than 100 congressional offices last week.

Meanwhile, members of the Democratic Trade Working Group continue to meet with U.S. Trade Representative (USTR) Robert Lighthizer. Last week, the working group met for the fourth time—this time focusing on enforcement issues. Rep. Jimmy Gomez (D-CA), who is the group’s lead on labor issues, called Friday’s session with Lighthizer “the best meeting yet.” Next week, the working group intends to start brokering an agreement by sending detailed text and proposals to Ambassador Lighthizer.

With Congress out on recess, there are no scheduled meetings, but congressional staffers will continue to engage with the office of the USTR on the four main Democratic issues: labor, enforcement, environmental and pharmaceutical provisions. Meanwhile, Ambassador Lighthizer is continuing to try and win over labor unions, which will make it easier for the administration to gain support from House Speaker Nancy Pelosi (D-CA) and other Democrats in the caucus. House chief deputy whip Henry Cuellar (D-TX) predicted that Congress would pass the USMCA this year, even hinting that a significant number of Democrats are likely to support it.

A delegation of U.S. lawmakers, led by House Ways and Means Trade Subcommittee Chairman Earl Blumenauer (D-OR), returned from their visit to Mexico City this week—while there, members met with Mexico’s Deputy Foreign Minister Jesús Seade, Mexican President Andrés Manuel López Obrador, and Mexican Labor Secretary Luisa María Alcalde Luján to discuss USMCA and Mexico’s labor and environmental standards. Several House Democrats were concerned about Mexico’s ability to comply with the labor provisions of the pact after they were denied entrance to a Goodyear plant. Overall, lawmakers reported that they believe Mexico’s government has the political will to carry through on real labor reforms, but question if it has the resources and additional personnel to carry out enforcement of the reforms.

Democrats are waiting to see if President López Obrador’s administration introduces labor-related items in his budget proposals this September and if the Chamber of Deputies will designate sufficient funds to its carry out labor reform

To see previous legislative updates, click here.