USMCA Deal Reached By Year-End: Trump, House Democrats Resolve Trade Dispute

The prospects of ratifying the new North American trade deal, USMCA by year-end brightened. This follows reports of the White House and House of Representatives nearing a deal on the matter.

According to a report by CNBC, if the White House sends ratifying legislation to Congress by Dec. 15, the Democratic-dominated House may vote on the trade deal by Dec. 18, quoting reliable sources.

The Trump administration has already delivered proposed changes to the trade pact to House Speaker Nancy Pelosi’s office on Saturday. But the bill is under study by House leaders.

It says the USMCA vote may be scheduled soon after the vote on articles of impeachment against President Donald Trump.

The White House has been exerting pressure for the faster endorsement of USMCA in Congress before the end of the year as Trump considers it a flagship trade deal to showcase before the 2020 election.

On Monday, the spokesperson of a senior Democratic lawmaker also said the two sides are close to an agreement but the specifics are too early to be announced.

Democratic lawmaker and Senate Finance Committee Chairman Chuck Grassley spoke to U.S. Trade Representative Robert Lighthizer on Monday, the report said.

The senator’s spokesman Michael Zona commented there is hope “there will be an announcement on a deal soon.” Grassley is awaiting a formal briefing to the Finance Committee over the trade developments, he added.

Trump promotes USMCA as a better deal

President Trump and the officials in his administration have been promoting the new trade deal aggressively. Trump has asserted that the old deal NAFTA was a “disaster” whereas USMCA is “very special.”

The CBS news noted that NAFTA despite removing many barriers in trade and investment between the U.S., Canada, and Mexico, caused job loss for many U.S. workers.

On USMCA, the Trump administration is upbeat it would usher in free markets and fair trade.

Reservations of Democrats

On USMCA, Democrats have many concerns. They wanted tougher enforcement of labor rules to check the flight of USA jobs to Mexico.

Sticking points were evident from the reaction of Mexico’s Foreign Minister Marcelo Ebrard who said Mexico would not accept a U.S. demand for verification by American labor inspectors in Mexico.

In addition to issues around labor laws, a pharmaceutical provision in USMCA also held up the progress in the trade deal’s ratification.

In the current text of the agreement, there is a 10-year exclusivity period for biologic drugs as a means of insulating pharma companies from low-cost generic competitors.

While Democrats call it detrimental to consumers, business groups insist that it is essential for protecting businesses’ intellectual property and investments on research.

From the trade union side, the AFL-CIO urged Democrats to ensure tougher labor enforcements to protect the interests of American workers.

Meanwhile, Fox News reported that trade negotiators from the U.S., Mexico, and Canada have agreed on changes to the United States-Mexico-Canada Agreement.

As a result, the final deal could come together in the next 24 hours paving way for its ratification by the three countries.