WASHINGTON -- House Democrats embraced the U.S.-Mexico-Canada trade agreement after securing key revisions and announced plans to vote on the deal next week, putting President Donald Trump closer to a political win as he heads into the 2020 election.
Speaker Nancy Pelosi praised the changes her House Democats were able to negotiate, saying the revised deal is better for American workers. She said the new version of the accord, known as the USMCA, will be a model for other trade agreements going forward.
“This is the day we have been waiting for,” Pelosi told reporters. “It is infinitely better than what was initially proposed by the administration.”
Trump welcomed the finalized NAFTA overhaul, which has been languishing for more than a year and could resolve some of the uncertainty weighing on the economy as he heads into his re-election campaign. But it is also a win for House Democrats who are eager to prove that they can do more than investigate and impeach Trump.
The timing on Tuesday was extraordinary, with Pelosi flanked by more than 30 of her colleagues announcing the long-awaited trade deal just minutes after chairmen of House committees investigating Trump unveiled the two articles of impeachment they plan to bring against the president. She said the back-to-back announcements were not a coincidence.
“We are at the end of the session and you have to make some decisions,” Pelosi said.
The changes that Democrats demanded on provisions regarding the environment, pharmaceuticals, labor and overall enforcement were the subject of intense negotiations between U.S. Trade Representative Robert Lighthizer and House Democrats led by Ways and Means Chairman Richard Neal.
“Every once in a while you get to participate in a will-it-ever-happen moment,” Neal said Tuesday. ”This is a triumph for workers across America.”
Lighthizer called the agreement “historic” and said the accord “will be the model for American trade deals going forward.”
“After working with Republicans, Democrats, and many other stakeholders for the past two years we have created a deal that will benefit American workers, farmers, and ranchers for years to come,” Lighthizer said in a statement.
GM, Ford praise deal
“General Motors is pleased to see the USMCA agreement moving forward on a path towards approval," the automaker said in a statement. "We view the agreement as vital to the success of the North American auto industry and have long supported efforts to modernize it in a way that strengthens the industry and positions it to be a global leader.
"GM has invested $23 billion in its American manufacturing operations over the last ten years and has accounted for 26 percent of all U.S. manufacturing investment since 2010. We will continue to do our part to enhance manufacturing and sourcing opportunities in the United States. The certainty that comes from having a trade agreement like USMCA in place allows our company to invest and source with confidence and therefore encourage swift passage of the agreement in Congress.”
Ford Moto Co., in its statement, said it has long supported the USMCA.
"It allows the U.S. auto industry to be globally competitive, encourages U.S. r&d in this new era of mobility, and provides a framework for good-paying U.S. jobs," Ford said. "This benefits our customers, the workers and families who depend on a strong Ford, and the suppliers who help fuel our success. We look forward to reviewing the details of this final bipartisan agreement and urge Congress to take advantage of today’s progress and momentum by passing the USMCA without delay."
'Rock and roll'
Pelosi told her Democratic members earlier Tuesday that she expects a vote next week, according to Representative Henry Cuellar, a Democrat from Texas. Neal also confirmed that timing.
“We are ready to rock and roll,” Cuellar said after a closed-door meeting of Democratic representatives in Washington. “We’re very confident. We have the numbers” to pass the deal.
Pelosi later told reporters she hopes to vote on the deal, known as the USMCA, “before the end of the session,” which would be before Congress recesses for the holidays Dec. 20.
Representatives from Canada, Mexico and the Trump administration will meet in Mexico City later Tuesday to sign the amendments to the trade agreement. Mexican President Andres Manuel Lopez Obrador said the new version will be ratified by the legislatures of all three countries.
The revised trade agreement removes a loophole in NAFTA that allowed any country to object to the formation of enforcement panels, and it updates rules governing how evidence can be presented at arbitration panels, according to a summary of the agreement.
The major sticking point in talks for months has been labor-rights enforcement. The deal creates a new labor-specific dispute panel system covering all goods and services, and labor violations can lead to “penalties on goods and services.”
Instead of U.S. labor inspectors in Mexico, which Mexican negotiators opposed, the deal creates an inter-agency committee to monitor labor rights in Mexico and allow labor attachés to monitor labor reforms.
The agreement establishes benchmarks for Mexico’s implementation of its new labor law. If the deadline is not met, that leads to “enforcement action,” according to the summary.
Democrats also managed to remove a provision that would have guaranteed 10 years of data protection for biologic drugs, which pharmaceutical companies lobbied to preserve in the deal.
“We now have a new and improved, renegotiated NAFTA that prevents Big Pharma from raising prices,” said Representative Jan Schakowsky, an Illinois Democrat.
The Biotechnology Innovation Organization, a drug industry group, said removing protections for biologic drugs “surrendered one of the most important tools” that would help Trump keep his promise to “end foreign free-riding on American medical innovation.”
Pelosi said that she was not able to remove a provision granting legal liability protections for internet companies from the deal.
Trump tweeted his support for the revised agreement Tuesday before Pelosi’s announcement.