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More Optimism Surrounding USMCA Passage

More Optimism Surrounding USMCA Passage

One of the biggest hurdles to passing the U.S.-Mexico-Canada Trade Agreement could soon go away. Mexico recently promised House Democratic Leadership that it would improve its enforcement of new labor standards to protect the rights of workers in that country.

The LA Times says Mexican President Obrador also told Democrats during meetings in Mexico that his government would add more funding to make sure Mexico complies with the agreement’s provisions. That could mean the road to the revised North American Free Trade Agreement could become much easier with Mexico’s concessions to labor concerns. That’s assuming Obrador’s assurances are put into writing as House Democrats want. The Democratic trip to Mexico comes almost a full year after Trump signed the new trade pact with the leaders of Mexico and Canada. Congress hasn’t approved the deal yet and House Speaker Nancy Pelosi says it won’t come up for a vote in the chamber until all of their concerns are resolved.

U.S. Trade Representative Robert Lighthizer has worked with a group of House Democrats who want Mexico to improve its policy on labor, pharmaceutical, and environmental issues. However, the changes don’t require reopening the agreement with Mexico and Canada, something that would derail the trade pact entirely.

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