Deputy USTR Nominee Says First USMCA Dispute Could Start in Fall
Michael Nemelka, the nominee for deputy U.S. trade representative, said that the first case under USMCA could begin in the fall, if consultations with Canada or Mexico fail. Nemelka, who currently works as a special adviser to the USTR, said that they are reviewing complaints this month. After that, staff will consult with the congressional committees of jurisdiction about which complaints would make the best cases. Then a consultation process would begin.
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He said starting enforcement quickly is important, but so is picking the right case.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, asked Nemelka during the July 21 hearing with several nominees if investor-state dispute settlement would be included in the U.S.-Kenya free trade deal, as he is hearing from those who feel that the way that ISDS was pared back in USMCA may be allowing Mexico to move “in the wrong direction” in its treatment of American companies.
Nemelka said that's still under consideration by USTR. In his opening statement, as prepared, Nemelka said, “In Africa, USTR just launched negotiations on a free trade agreement with Kenya, which would be the first such agreement between the United States and a Sub-Saharan African country. As Ambassador Lighthizer has said, the goal is to conclude an agreement that is comprehensive and high-standard, while also being one that works for Kenya and can serve as a model for additional agreements across Africa. If confirmed, I also look forward to seizing the opportunities we have on investment, services, and textiles, and building on the USMCA’s model labor and environmental chapters.”