Trade Law Daily is a Warren News publication.

Republicans in Senate Feeling Boxed Out on USMCA Mock Markup Compromise

Although the Senate Finance Committee will still have a mock markup on the U.S.-Mexico-Canada Agreement, it will happen after the implementing bill has been sent to Congress, so it will be more “mock” than in past deals. The reason the process of Congress weighing in on a trade deal is a mock markup is that under fast track, or Trade Promotion Authority, Congress cannot amend the deals. But typically, the administration sends up a draft implementing bill, and then does incorporate at least some of Congress's suggestions on language before sending the final implementing bill.

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.

Finance Committee Chairman Chuck Grassley, R-Iowa, acknowledged in a hallway interview Dec. 12 that “the normal process of suggesting changes to the administration before it can come up isn't going to be possible now.” Sen. John Thune, R-N.D., said in a hallway interview: “The frustration that members have is that there isn't opportunity to change it, but that's the way TPA was designed. Everybody knows it's pretty much an up or down type option.”

Thune, Grassley and other Finance Committee members had just been briefed by U.S. Trade Representative Robert Lighthizer about the USMCA.

Sen. Pat Roberts, R-Kansas, said: “ Is it the best possible bill? No. Is it the best bill possible? Yes.” He said that in the end, all the agricultural interests are telling him “this is an extremely good bill on behalf of agriculture.”

Sen. John Cornyn, R-Texas, sounded a more discordant note. “It looks to me like the administration is working with Speaker Pelosi to jam the Senate,” he said. He declined to say what bothered him about the changes won by Democrats, or what he would have proposed in a normal mock markup, because he said it's a moot point. Still, he will vote yes on USMCA. “I supported NAFTA, and I support this. But I don't appreciate the Senate being ignored as part of the process,” he said.

Even though the markup will not have any effect, the administration did listen to senators' complaints about the statement of administrative action, the previous step in the fast track process. Thune and Sen. Ron Wyden of Oregon, the top Democrat -- who were joined by others -- pushed repeatedly for the administration to abandon its idea of creating a reciprocal de minimis level for Canada or Mexico. Grassley confirmed that is now out of the implementing bill (see 1912110067).

The top Republican on the House Ways and Means Committee, Kevin Brady of Texas, said Republicans should recognize that House Democrats made important changes, like fixing the state-to-state dispute settlement shortcomings of NAFTA, which means now the whole agreement will be enforceable. And, he said, focusing on Mexico's implementation of its labor reform was important.