The Pak Banker

Delaying approval of new trade deal hurts workers

- Reps Kevin Brady and Steve Scalise

The U.S. will be losing out on more jobs, more customers for Made-inAmerica goods and a stronger economy unless the U.S. House of Representa­tives takes up the updated trade agreement with Mexico and Canada.

Last fall the three countries came together to modernize the North American Free Trade Agreement, bringing this successful trading partnershi­p into the 21st century. USMCA will provide substantia­l benefits to U.S. workers, families and Main Street businesses.

But before we can benefit from these improvemen­ts, Congress must first approve the carefully crafted agreement. Every day of delay hurts American workers, farmers and local businesses.

President Trump and U. S. Trade Ambassador Robert Lighthizer worked tirelessly to make this agreement a solid win for American workers and job creators. Lawmakers in both parties heartily defend the current U.S-Mexico-Canada trading partnershi­p as vital. On balance the new USMCA strengthen­s that partnershi­p in key ways by preserving provisions that work well today, improving on others and establishi­ng new standards that are the best in the world.

Delay of approval in Congress hurts U.S. jobs. Without the agreement America will miss out on adding 176,000 new jobs and over $68 billion in new economic growth according to the U. S. Internatio­nal Trade Commission.

Delay hurts America's auto workers. Based on concrete business plans provided by the auto industry, USMCA will add $34 bil

lion in new manufactur­ing investment in the U.S. and 76,000 American jobs over five years. If Congress delays or kills USMCA, these new investment­s and jobs could be delayed indefinite­ly.

U.S. agricultur­e also stands to lose every day the USMCA is not implemente­d. Why delay more access to Canadian customers for American dairy, wheat, chicken, egg and turkey producers?

America's groundbrea­king inventors cregreat paying jobs and careers here at

ate home. Every day USMCA is stalled in Congress, U.S companies are forced to wait longer for patents in these countries. This means losing valuable time and dollars in getting new, innovative products to market while foreign competitor­s get a leg up.

U.S. inventors already wait an average of 10 years in Canada and seven in Mexico. That's too long. These approval times accelerate under the new trade agreement, which benefits families and businesses in all three countries.

Today American farmers, small businesses and manufactur­ers often face higher costs and shipping delays for Made-in-America goods sold to customers in Mexico and Canada. USMCA streamline­s customs procedures and inefficien­cies at the borders, saving time and money for American businesses and consumers in all three countries.

Delay also hurts American innovation. Digital trade like online sales, music, movies and games is a big part of America's strength, accounting for $1.3 trillion in the U.S. economy and supporting over five million U.S. jobs that pay nearly double the average American salary.

The current NAFTA was birthed before the internet became a major sales platform. The USMCA contains a modern digital trade chapter that sets a new standard for the globe and maintains America as the world leader in the digital economy. Tech workers in California, Texas and the East Coast are hurt by congressio­nal delay.

America's labor unions are losing out while Congress tarries. Democrats have long rightly criticized labor rules in Mexico whose workforce is characteri­zed by undemocrat­ic, employer-dominated unions which negotiate collective bargaining agreements that hamstring their workers. Here the Trump trade negotiator­s have delivered a stunning prolabor agreement, requiring Mexico to create a true union system - including collective bargaining rights for Mexican workers - and the Mexican legislatur­e has just passed important legislatio­n to do so.

USMCA requires all three countries to adopt and maintain labor rights in line with guidelines set by the Internatio­nal Labor Organizati­on. For the first time ever, the agreement sets a rigorous requiremen­t that 40 percent of the value of a car must be made by $16-an-hour labor - that will push jobs back to the U.S.

These new obligation­s aren't merely a side deal as with the current NAFTA, but are included in the text of the agreement and have been greatly strengthen­ed. This is a level of commitment that Democrats and labor in the U. S. have sought but never achieved in decades of trade negotiatio­ns. Every day of delay by Congress allows Mexico to remain a low labor cost competitor against U.S. workers and companies.

It's time to act.

After years of stagnation America's economy is growing 50 percent faster than earlier projected. Paychecks are rising, especially among blue-collar and low-income workers. America's manufactur­ing is back. And jobs and investment are flowing back into the U.S. from overseas.

Delaying USMCA means fewer economic benefits to hard working Americans.

We must pass USMCA now, and we call on Democrats in the House to work with Republican­s in a bipartisan way to get this done for America.

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