NAFTA 2.0 Update: USTR Provides Congress with List of Legislative Changes Needed to Implement U.S. Mexico-Canada-Agreement

Clint Long

On January 29, 2018, U.S. Trade Representative (“USTR”) Robert Lighthizer notified the Senate Finance Committee of a list of legislative changes that the USTR considers necessary to replace the North American Free Trade Agreement with the U.S.-Mexico-Canada Agreement (“USCMA”). The USMCA was signed by the United States, Canada, and Mexico in November 2018. The changes include a number that will likely have a significant impact on U.S. manufacturers, including the implementation of new rules of origin for goods receiving preferential tariff treatment (including stricter rules of origin for vehicles and vehicle parts, the need to meet minimum content requirements for steel and aluminum for vehicles qualifying for preferential treatment, and minimum labor wage requirements for vehicles produced at plants in USCMA countries) and a provision encouraging cooperation among the parties with respect to the prevention of evasion of antidumping and countervailing duties.

Representative Duffy Introduces Reciprocal Trade Act in the House of Representatives

Benjamin Bay

On January 24, 2019, Representative Sean Duffy (R-Wisconsin) introduced new legislation in the U.S. House of Representative that, if enacted into law, would greatly expand Presidential authority to apply tariffs on goods imported into the United States. This legislation, drafted by the White House and titled the “Reciprocal Trade Act,” would provide the President with authority to impose tariffs on products from countries when there are significantly higher tariffs on U.S. imports into that country than are imposed by the United States.

Senate Commerce Committee Restructures Two Trade and Manufacturing-Related Subcommittees

Pat Togni

On January 11, 2019, the Senate Commerce Committee announced that it was re-structuring several of its sub-committees in order “to exercise oversight more effectively and develop policy” across the numerous Federal agencies that fall within its jurisdiction. Included in the restructuring effort is a Subcommittee on Manufacturing, Trade, and Consumer Protection, which will be chaired by Sen. Jerry Moran (R-KS). The Subcommittee on Manufacturing, Trade, and Consumer Protection’s jurisdiction will include responsibility for “manufacturing and workforce development” and “manufacturing and trade related matters within the Department of Commerce.” Also of note is a new Subcommittee on Security, to be chaired by Sen. Dan Sullivan (R-AK), which will “address the intersection of economic and national security.”