Two Coalitions Preparing to Lobby for USMCA Passage
The U.S. Chamber of Commerce-organized USMCA Coalition launched Feb. 26, with many of the major trade players -- UPS, the Detroit automakers, the farm bureau, the American Apparel and Footwear Association -- and some notable absentees -- foreign automakers, aerospace firms.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Shane Karr, a coalition co-chairman from Fiat Chrysler, was quoted in the press release announcing the launch: "The new trade agreement incentivizes the auto industry to make new investments to build our most advanced vehicles here and will ensure that our products remain competitive in markets around the world.”
The Alliance of Global Automakers did not respond to a question on why they are not pushing for passage. Co-Chairwoman Laura Lane, president for global public affairs at UPS, said, "USMCA establishes best-in-class rules for e-commerce, digital trade, customs, and intellectual property protection."
The smaller Pass USMCA Coalition, which is going to coordinate with the Chamber effort, has the ambition of sending a lobbyist to all 435 House members' offices. "We're going to hustle and work hard for every [state's] delegation," said Rick Dearborn, executive director of the Pass USMCA Coalition. That work hasn't really begun, though the trade deal was signed at the end of November. "Everybody's just getting over the fog of the [federal government] shutdown," Dearborn said. But he said he doesn't feel they've lost any time, because nothing will start to move until the International Trade Commission releases its report, and it, too, was pushed back by the 35-day shutdown.
Dearborn sees the large freshman class in the House of Representatives as an opportunity to recruit "yes" votes. He said that while "the progressives in the House get a lot of ink these days," there are at least as many new Democrats from moderate suburban districts. Dearborn recently left a White House job, but he said his lobbying firm has Democratic employees, and the honorary co-chairmen who are retired Democratic politicians will be working their contacts on the Hill.
Dearborn said it's difficult to predict when action might begin on the U.S.-Mexico-Canada Agreement, but he's hoping that committees start working on draft implementation bills in March, April and May, and that votes could happen in May or June. He said it could get done by the July 4 recess, or by the August recess.
President Donald Trump spoke to governors this week about USMCA, predicting that it will end the goods trade deficit between the U.S. and its NAFTA partners. "It will help our dairy farmers in Wisconsin; our wine makers in Oregon and Washington and California; our autoworkers in Michigan and Ohio and Pennsylvania and all over; and dozens of other states, and ranchers and farmers and growers and manufacturers from coast to coast. It's a very, very comprehensive deal. It's a deal that nobody thought we'd be able to get approved" at the bargaining table, Trump said.
"I was able to get it approved, to be honest with you, by using tariffs. I was putting very substantial tariffs -- or was getting ready to -- on Canada, who was very tough to negotiate. I said, 'Look, you know, you're either going to do this or we're going to put 20, 25 percent tariffs on your cars that you ship in here by the millions.' And every time we had a problem, we'd just say, 'That's okay. Don't worry about it. We'll put the tariffs on.' And they said, 'Okay. Fine. It's okay. We'll sign.'"
Trump acknowledged that the next challenge is going to be getting it approved by Congress, and said he thinks it probably will be. "I know how much they hate me, but they have to hate me even more not to get this deal approved," he said.
Dearborn said he thinks Republicans "will be pretty solid" in their support, though he said there will be some people from both parties who will have objections that lead them to vote no. When asked what keeps him up at night about the vote, Dearborn replied, "I sleep pretty well. I think this agreement sells itself."
His coalition released a survey Feb. 26 that said 51 percent of voters want Congress to ratify the deal, and 14 percent want it voted down. Another 32 percent "somewhat support" the new NAFTA.
Dearborn advised interest groups and companies that want the deal ratified to recruit businesses who are willing to fly their spokespeople to Washington to tell their Congress members how export opportunities in the region will help them expand. "They should all jump in the game," he said, including attending town halls and other events during the two-week Easter break in April, and telling their representatives how important passage is to them.