USTR Consults With Ways and Means Committee

House Ways and Means leaders said a visit from the U.S. trade representative Feb. 7 was a productive meeting about modernizing NAFTA. "I want to make sure we hold our trading partners accountable through strong, enforceable commitments with effective dispute settlement, including ISDS, because it creates U.S. jobs. People in my district and across the country are counting on us to get this right, which is why we all have to stay at the table. Congress has the Constitutional responsibility over trade and we’re committed to fulfilling our duty in close coordination with the Administration," Chairman Kevin Brady, R-Texas, said in a statement after the private meeting.

Investor-state dispute settlement (ISDS) is part of the current NAFTA framework. USTR Robert Lighthizer has criticized ISDS, saying that because it reduces the risk of investing in Mexico, it could encourage production shifts there. The U.S. has proposed that each country could opt out of the system, but has also signaled that keeping the system may not be a deal breaker (see 1711220055). Canada in the latest round of negotiations said it may be willing to accept an ISDS system that includes only Canada and Mexico (see 1801290049).

"Our trade agreements have greatly benefited communities across the country, but we can and should update our agreements and make improvements," Trade Subcommittee Chairman Dave Reichert, R-Wash., said in a statement. Reichert's district has major exporters, such as Boeing and Microsoft. "I remain committed to strong agreements and working with Ambassador Lighthizer and his team to create new opportunities for my constituents,” he said.