US Trade Envoy Meets Lawmakers on U.S.-Mexico-Canada Deal as Time Runs Short

Lighthizer and other U.S. trade officials met on Wednesday with a working group of Democrats in the U.S. House of Representatives, Reuters reported.

Democrats said they were making progress every day, rejecting criticism from U.S. President Donald Trump and some Republicans who have accused them of stalling a vote on the deal that replaces the 1990s-era North American Free Trade Agreement (NAFTA).

Lighthizer also met with Republicans on the House Ways and Means Committee, said one of the sources. In addition, his staff met with congressional staff on Monday and Tuesday, according to two of the sources.

Despite the positive signals, Senate Finance Committee Chairman Chuck Grassley, a Republican, said in a speech on the Senate floor that he feared the Democratic-controlled House was “increasingly less likely to act this year on USMCA.”

He said Democrats appeared to be stalling to avert handing any victory to Republican Trump, but added that failure to act could cost them votes in the 2020 elections.

Delaying a vote on the deal could ultimately derail it since little legislation is likely to be finalized in a presidential election year.

As part of the USMCA, Canada and Mexico both raised their de minimis thresholds, aiding consumers and small businesses in the United States, but those levels will remain well below the U.S. level of $800, the highest in the world.

U.S. technology groups have said that lowering the U.S. threshold would undermine the broader gains of the deal.

Read More