PM upbeat as USMCA talks progress
The push to ratify the new North American free trade pact shifted to Ottawa on Wednesday as a key U.S. Democrat held talks with Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland.
The visit from Rep. Richard Neal, chairman of the powerful U.S. House of Representatives’ Ways and Means Committee, came as news broke that the first hearings in the impeachment probe of U.S. President Donald Trump would begin next week. Those proceedings, together with Democrat concerns about the enforceability of a promised overhaul to Mexico’s labour laws, have been identified as among the potential roadblocks to ratifying the United States–Mexico–Canada Agreement (USMCA).
Nevertheless, Trudeau remained upbeat about the deal’s chances.
“It is a pleasure to see the positive momentum that seems to be happening on this renewal of this very important trade deal,” Trudeau said at the start of the talks.
The deal, which would replace the existing $1-trillion North American Free Trade Agreement, must win approval from the Democrat-controlled U.S. House of Representatives. The Republicans dominating the U.S. Senate support the pact, considered one of Trump’s few victories on trade.
Neal’s talks in Ottawa follow a recent visit to Mexico City, where he sought reassurances from President Andrés Manuel López Obrador that Mexico will follow through on labour reforms that include ending employer interference in unions and creating independent labour courts to handle disputes.
Wide gaps in worker rights and wages between Mexico and the U.S. have long been a core issue for Democrats who want to prevent jobs from being lured away from higher-wage U.S. jurisdictions.
A proposal for teams including U.S. officials to inspect Mexican workplaces has prompted concerns about sovereignty, but some Democrats have said the treaty must be reopened in order to build stronger labour rules. Mexico and Canada have repeatedly refused to crack open the pact, forged through 17 months of often-rancorous talks. Financial Post