Business Interests Hail Conclusion of USMCA Edits
Even though the Democrats won some changes to the new NAFTA that are seen as contrary to business interests -- primarily, removing extended patent protection for pharmaceuticals in Canada and Mexico -- business groups celebrated House Speaker Nancy Pelosi's decision to hold a vote on the trade pact. A vote in the House is expected next week, but a Senate vote won't come until next year.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The U.S. Chamber of Commerce said: “We are optimistic this development will open the door to final approval of USMCA on a bipartisan basis by the end of the year, which will especially benefit American farmers, manufacturers, and small businesses.” The National Foreign Trade Council said “This is finally good news on the trade front after a long, hard year," and said it will bring the certainty companies need to remain competitive.
The pharmaceutical trade group PhRMA reacted by saying: “The announcement made today puts politics over patients. Eliminating the biologics provision in the USMCA removes vital protections for innovators while doing nothing to help U.S. patients afford their medicines or access future treatments and cures. The only winners today are foreign governments who want to steal American intellectual property (IP) and free ride on America’s global leadership in biopharmaceutical research and development." The Pass USMCA Coalition, heavily funded by biotech companies, didn't remark on the deal.
The American Iron and Steel Institute, which will benefit from the steel content requirement in the auto rules of origin, said "Implementation of the USMCA is critical to strengthening the steel industry’s competitiveness in the face of the continued challenges from global excess capacity and weakening demand.”
The International Dairy Foods Association, which will benefit from some less restrictive tariff-rate quotas on dairy imports in Canada, as well as the end of a price support for Canadian producers that led to skim milk powder surpluses, called it a great day for all of agriculture. “Make no mistake about it, for the U.S. dairy industry -- farmers, processors, and suppliers -- the USMCA deal is a major win that levels the playing field with our largest trading partners. It preserves hundreds-of-thousands of jobs in U.S. food and agriculture directly attributed to trade with Canada and Mexico. It removes several overly protective policies that had hampered U.S. agricultural exports,” the group said.
Farmers for Free Trade said, "This is welcome news and a relief for American farmers. Now it’s time to get the bill passed before politics can get in the way. Farmers and ranchers will be watching closely to ensure that their members of Congress are standing up for American agriculture.”
The National Council of Textile Organizations, which benefits from some changes to apparel rules of origin, issued a statement that said these improvements will “bolster our $20 billion in annual trilateral textile and apparel trade. U.S. textile exports alone to Canada and Mexico -- the industry’s top two export markets -- totaled $12 billion last year, underscoring the importance of the trade deal to the industry’s Western Hemisphere supply chain as well as its growth and investment in the U.S.”
The American Apparel and Footwear Association emphasized the need for a planned transition to the new rules of origin, even as it welcomed the news. “An integrated North American supply chain is an integral component of the apparel and footwear industry. Further, in a time of trade uncertainty, it will provide businesses with the ability to invest confidently in the region."
The Corn Refiners Association pointed to the requirement for science-based sanitary and phytosanitary standards and simpler customs procedures, as well as more market access in Canada for dairy, poultry and eggs. “With Mexico and Canada representing the two largest markets for refined corn products totaling more than $900 million in yearly exports, we urge Congress to swiftly pass this deal that is critical to the success of American businesses, farmers and workers.”
The National Retail Federation said, “This agreement could not come at a better time and provides certainty for U.S. retailers that rely on the North American market, including those that operate in Canada and Mexico.”