At the same time, the Speaker is seeking
legislative victories of her own “to lend a messaging boost to
vulnerable Democrats also seeking to woo voters,” and help her hold
control of the House. That means finding common ground with Trump on
“core issues,” and trade is one where the sides have some basis of
agreement, The Hill opines.
Much work remains, however, and Democrats are
threatening to back away unless they win more sway over provisions
within the “new NAFTA.”
Pelosi and other top Democrats huddled with US
Trade Representative Robert Lighthizer last week, amplifying their
demands that stronger labor, environmental and prescription drug pricing
protections be written explicitly into the agreement text.
Democrats are virtually united in their demands,
with conservative-leaning Blue Dogs joining liberal lawmakers in
insisting on the new protections. However, some of the Democratic
demands would require the trade deal to be reopened for talks with
Canada and Mexico, something Lighthizer does not want to do.
“I understand, but he's now got Democrats in
charge,” Rep. Mark Pocan, D-Wis., a Congressional Progressive Caucus
leader, said – explaining Lighthizer might have to reopen talks to get
the deal through Congress.
The wild card may be Trump, whose recent
imposition of huge tariffs on China, another key trading partner, has
rattled global markets and threatened to hike the cost of goods at home.
The China tariffs are not directly related to
the NAFTA negotiations, but they’ve spotlighted what might be the
highest barrier to a new deal with Canada and Mexico: Democrats’
lingering distrust in the President.
“Whether it's what's currently going on with
China, or you look at the previous agreements, that's why the text in
the agreement matters,” said Rep. Ben Ray Lujan of New Mexico, the No. 4
House Democrat. “[The protections] should be put right in. There
shouldn't be a question.”
The prospects of winning a deal on the USMCA got
a huge boost on Friday, when the administration announced it was
lifting some import tariffs on steel and aluminum — a major sticking
point that had dogged the talks with America’s closest trading partners.
The decision was hailed by business groups,
leaders in Canada and Mexico and lawmakers on Capitol Hill, but it
doesn’t address the labor, environmental and drug protections Democrats
are still clamoring for.
“Is it enough to get a new deal over the finish
line? Not for me it isn't,” said Rep. Bill Pascrell, D-N.J. “Any new
NAFTA won't get my support until enforcement of strong labor standards
can be assured."
Altering the text of the agreement would require
signoff from all three countries. In Lighthizer, Democrats see a
straight-shooting negotiator, but without the changes, the agreement
will likely never see a vote on the House floor.
“He's going to see what he can do to
accommodate. One of his major obstacles is the pledge not to open it for
any tweaks or any reform or any renegotiation. And that becomes a
stumbling block,” said Rep. Ron Kind, D-Wis.
“The Speaker's not going to bring a trade bill to the floor that deeply divides our caucus; she won't do that,” he added.
Reworking previously negotiated trade deals is
not unheard of. The George W. Bush administration won trade deals with
Colombia, South Korea and Panama but none made it through Congress
before the end of Bush’s presidency. The Obama administration then
renegotiated the pacts to accommodate concerns from Democrats and
industry groups.
Overhauling new NAFTA seems to have even more
widespread appeal. Many Democrats have long called for revamping the
Clinton-era agreement. “That's happened because of this kind of stuff.
So we've got to figure out the right way,” said Rep. Debbie Dingell, D.,
Mich.
The discussions between Pelosi and the
administration highlight the dual track Democrats are navigating in
their approach to a president who is anathema to their liberal base. On
one hand, Democrats have launched a series of aggressive investigations
seeking to uncover potential administrative wrongdoing — probes that
even Pelosi has hinted could end in impeachment. On the other, Democrats
are hoping to work with Trump in areas where they see common interests.
“I think it's something that folks in the
heartland who represent farm communities, who represent the auto
industry, can look to as an achievement,” said former Rep. Joe Crowley,
D., N.Y., the former House Democratic Caucus chairman, who’s now a
leader of the Pass USMCA Coalition.
But the window for Congress to act is running
short. Both sides say that the best time for action is before the August
recess. Congress is also faced with the need for a deal to avoid
another government shutdown and raise the debt limit this fall.
Considering the calendar and the barriers still facing new NAFTA, some
lawmakers say they “aren’t holding their breath.”
Clearly, highly contentious trade issues remain
across the board and these debates should be watched closely as they
intensify, Washington Insider believes.