Trade ministers are close on changes to USMCA

Top officials from the U.S., Mexico and Canada are close to agreeing to changes to the new North American trade pact that would allow for House Democrats to put the deal up for a vote, Mexico's top trade official said on Wednesday. "We’re reaching understandings. We’re now looking at very specific details, but I think we’re heading towards a deal," Mexican Undersecretary for North America Jesús Seade told reporters after meeting for roughly four hours in Washington with U.S. Trade Representative Robert Lighthizer. "Everything looks like it's heading in the right direction," he added. The latest flurry of trilateral engagement comes as Lighthizer works with House Democrats to make changes to the USMCA surrounding the pact’s labor, environment, enforcement and prescription drug provisions. Canada and Mexico both need to agree to any updates to the deal, which the three countries signed a year ago. Canada is expected to agree to tweaks that are on the table. But Mexico is worried about some proposals, such as a request by House Democrats to allow for U.S. inspectors to make sure factories in Mexico aren't violating labor rules. Mexican officials fear that certain changes, like on-site inspections, would threaten the nation’s sovereignty. Labor enforcement has been the main issue holding up an agreement between House Democrats and the administration. U.S. lawmakers are seeking to ensure that Mexico fully implements its landmark labor reforms — and is held accountable if it does not. While Democrats and Lighthizer have not formally struck a deal, Seade praised Democrats for pushing for stronger terms than the original USMCA signed last year. Lighthizer has been negotiating with a group of nine Democrats since June to make changes to the pact Democrats say will benefit workers in the U.S., Mexico and Canada...MORE