Democrats wary of US-Mexico NAFTA deal

Democratic lawmakers are remaining on the fence about President Trump’s bilateral trade deal with Mexico, even after Canada, the third partner in the North American Free Trade Agreement, signaled a willingness to go along with the deal.

Many initially cited Canada’s exclusion from the talks that produced the deal as one reason to hold off on taking a stance, and haven’t moved from that position as talks with Canadian leadership have progressed this week.

Rep. Tim Ryan, D-Ohio, for instance, said Monday shortly after the deal was announced that it should include all three of NAFTA’s trading partners, saying that he would “continue to pressure the administration to achieve a strong, trilateral agreement that puts workers in the United States, Mexico, and Canada first.”

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By Wednesday, Canadian officials signaled that they open to the deal, though they said some issues still needed to be resolved. “I understand that the Americans and Mexicans very much want to try and get things done by Friday, and we’re seeing if we can get to the right place by Friday,” said Prime Minister Justin Trudeau. The same day, Foreign Minister Chrystia Freeland, in Washington to talk to U.S. Trade Representative Robert Lighthizer, said she was “optimistic about having some good productive discussions this week.”

Democrats argued that that didn’t amount to much of a change. “Members and the public are still reviewing the outline of the deal … nothing is finalized yet,” said Ryan spokesman Mark McDevitt.

The main provision of the U.S.-Mexican agreement alters the so-called “rules of origin” raising up to 75 percent, up from 62.5 percent, the amount of North American-made parts needed for a car or truck to be duty-free under NAFTA. It also required that at least 40 percent of all auto content be made by workers making at least $16 an hour or its equivalent. Both changes would force auto manufacturers to move more production back into the U.S.

The deal would be a huge boon to organized labor, which has long decried trade policy that they argue encourage outsourcing of jobs.

Staffers for union-allied lawmakers nevertheless remained skeptical, reflecting the lack of trust and goodwill with the administration. “I have only seen mild optimism, nothing firm yet … I am not sure the situation has changed since Monday,” said Josh Stewart, spokesman for Rep. Marcy Kaptur, D-Ohio. “We’ll see what they announce tomorrow.”

A staffer for another prominent Democrat said: “We will need to see what’s in the full deal, and that also means the Canada pieces. I.e. we’ll need to see final text and details before we can make any judgments.”

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