USMCA May Hit Snags on Labor Rules, Tariffs

Democrats in the U.S. House of Representatives seem inclined to wait for the Mexican government to make the necessary changes to its labor laws before taking action on the United States-Mexico-Canada Agreement.

Language in the agreement specifies that the ratification process could be held up if Mexico doesn’t follow through on the promised changes. That includes changes to ensure the right to collective bargaining and secret votes when a labor pool considers unionizing.

Democrats worry Mexico will backpedal on those commitments, and there’s currently no recourse under the three-way deal. Some Democrats want it reopened to bolster enforcement of its labor provisions, among other issues, but Mexico and Canada are opposed to further renegotiation.

At a Democratic caucus meeting last week, U.S. Trade Representative Robert Lighthizer reiterated his position that labor enforcement concerns could be addressed during implementation of the agreement rather than reopening negotiations.

Also last week, Senate Finance Chairman Chuck Grassley (R-Iowa) tweeted that before Congress potentially signs off on the new NAFTA deal, Trump needs to drop steel and aluminum tariffs against Canada and Mexico.

Source: Politico