Democrats See USMCA Deal Near, Urge Mexico to Accept Compromise

Mexico鈥檚 top trade negotiator, Jesus Seade
Mexico鈥檚 top trade negotiator, Jesus Seade by David Kawai/Bloomberg News

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House Democrats said Dec. 4 that a deal on the stalled U.S.-Mexico-Canada free-trade agreement is within reach and urged Mexico to accept a compromise on labor-rights enforcement.

鈥淲e are on the 2陆-yard line,"听Ways and Means Chairman Richard Neal said about efforts to wrap up negotiations on the replacement for NAFTA and clear the way for approval in Congress.

Mexico鈥檚 top trade negotiator, Jesus Seade, was meeting Dec. 4 with his Trump administration counterpart, Robert Lighthizer, in Washington in an attempt to resolve final issues. Neal said rank-and-file Democrats would be briefed on the details of the talks later in the day.

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Gomez

California Rep. Jimmy Gomez, a member of the U.S. House Democrats negotiating team, said that House Speaker Nancy Pelosi and Lighthizer have offered Mexico a compromise on labor enforcement that 鈥渞espects Mexico鈥檚 sovereignty.鈥

鈥淚f they want a deal, it is ripe now,鈥 Gomez said. 鈥淚t鈥檚 a good deal. That鈥檚 my message to the Mexicans, and that鈥檚 my message to Democrats.鈥

Seade said in an opinion essay published Dec. 4 that Mexico would oppose any provision requiring U.S. inspectors in Mexican factories. He told reporters that Mexico is open to a fast-track arbitration process to address labor-rights violations. Gomez said the compromise does not involve 鈥渞ogue鈥 U.S. inspections, but that there is an element of monitoring involved to ensure compliance.

According to people briefed on the deal in Mexico, the labor proposal aims to make dispute settlement more effective. Disputes could take into account enforcement of Mexico鈥檚 overhaul to improve labor conditions, but wouldn鈥檛 allow investigators to show up at a factory unannounced, the 鈥渓one ranger鈥 type of inspections that Seade has rejected.

On another sticking point, the White House and Democrats have floated to Mexico removing a provision guaranteeing 10 years of data protection for biologic drugs, according to people briefed on the deal. That would be a victory for both Democrats and Mexico, which had opposed including the protection in the USMCA before it was signed one year ago.

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