Commerce Advisory Committee Members Tell US Trade Official to Take Industry Seriously in NAFTA Renegotiation

Members of the Commerce Department’s industry Advisory Committee on Supply Chain Competitiveness (ACSCC) made their case in person to a Trump administration trade official on Oct. 19, urging him to seriously consider several concerns that industry groups have about the ongoing NAFTA renegotiation. Tiffany Melvin, president of the North American Strategy for Competitiveness, a supply chain advocacy organization, directly questioned Commerce Deputy Assistant Secretary for the Western Hemisphere John Andersen about how receptive the Trump administration is to stakeholder feedback about the talks. “I feel like what we’re hearing is, not so much, not so receptive,” Melvin said during the ACSCC meeting. “But that’s not stopping anybody. They’re going to be sending letters and having meetings.”

U.S. Trade Representative Robert Lighthizer this week voiced opposition to current NAFTA provisions he believes principally benefit special interests, such as investor-state dispute settlement (see 1710180024), and an Office of the U.S. Trade Representative spokeswoman last week responded to a U.S. Chamber of Commerce criticism of U.S. NAFTA proposals by saying, “We have always understood that draining the swamp would be controversial in Washington” (see 1710100025).

National Retail Federation Vice President for Supply Chain and Customs Policy Jon Gold during the ACSCC meeting expressed concern to Andersen about U.S. proposals on automotive rules of origin and to remove textile and apparel tariff preference levels, and a set-aside petitioning process for antidumping and countervailing duties on seasonal and perishable products. Gold added that a U.S. proposal to sunset NAFTA after five years unless parties agree to renewal is “extremely concerning,” noting slim chances any industry group would support it. Gold also cited intermittent threats from President Donald Trump to withdraw the U.S. from NAFTA, and noted that it’s “incumbent” upon Commerce to advise Trump on how such an action would spur significant job losses in the U.S.

Andersen said stakeholders should continue to send their advice for negotiations, and be as specific as possible. He also noted that cleared advisers to the renegotiation have said the executive branch has been more transparent with them than perhaps during the Trans-Pacific Partnership negotiation, as cleared advisers have been able to access the text as soon as U.S. officials have. Melvin noted that the Trump administration has been taking cleared advisers’ advice well during the negotiating rounds. Andersen said some U.S. proposals during the renegotiation have been “untraditional,” but indicated optimism about the likelihood of concluding an updated deal. “The intent is to move forward to reach an agreement,” he said. It’s a “good sign” that the three countries agreed to extend negotiations through the first quarter of 2018 (see 1710170056), Andersen said.