USTR Expects Canadian Action on USMCA in Fall

U.S. Trade Representative Robert Lighthizer expects Canada's Parliament to continue progress on the U.S.-Mexico-Canada Agreement in the fall following October elections, he said in recently posted written responses to House Ways and Means Committee members following a June 19 hearing (see 1906190062). "The Trudeau government has begun necessary steps to ratify the USMCA in its Parliament and has stated that it plans to move forward on implementation in tandem with the United States," he said. "The Canadian Parliament has adjourned for the summer and is not expected to return before federal elections are held on October 21, 2019. We anticipate that Canada will take up the legislation once a new government is seated later this fall, and we are confident that the Parliament will vote in favor of the Agreement."

Lighthizer also said that he is working with lawmakers on the implementing legislation in the U.S. "on both content and process" and that "in particular, I am working closely with leadership in the House to ensure that we are ready with an implementing bill when the Speaker is ready to move forward."

Lighthizer also addressed the expansion of tariffs on goods from China as a negotiating tool. "Currently, the Administration’s use of tariffs under Section 301 is providing the United States with an important source of leverage to bring China to the table to negotiate an enforceable agreement that will address China’s unfair trade practices," he said. "The Administration does not have a predetermined timetable for how long it will be necessary to leave these tariffs in place."

The USTR plans to discuss EU fertilizer tariffs during trade negotiations, Lighthizer said. Asked about the fertilizer tariffs by Rep. Jason Smith, R-Mo., Lighthizer said "addressing fertilizer tariffs will be an important objective of any comprehensive U.S.-EU trade negotiation," but that negotiations haven't begun "due to the EU’s refusal to negotiate agricultural tariffs." Lighthizer also said the agency is "working to enhance our engagement with Brazil under the Agreement on Trade and Economic Cooperation," including discussion of "trade facilitation, good regulatory practices, technical barriers to trade, and anti-corruption."

The questions also include a mention of a potential free trade agreement with Switzerland, which was also discussed during the actual hearing. "I was pleased to hear that the U.S. is exploring a potential free trade agreement with Switzerland," said Rep. George Holding, R-N.C., who asked about the status of the discussions. Lighthizer answered: "We continue to evaluate potential FTA discussions with a number of countries, including Switzerland. The decision on whether to launch any negotiations must be based on an assessment of whether United States, workers, farmers or businesses benefit, and whether U.S. growth and employment could increase. Our end goal in any negotiation is always to make American workers and producers better off than they were before. In any such negotiation, we would follow the [Trade Promotion Authority] process as appropriate."