The U.S. Mexico Canada Trade Agreement (USMCA) was signed two months ago but has not yet been ratified in Congress.
Iowa Senator Chuck Grassley says he received a report from the special trade representative with what has to change in law to conform NAFTA to USMCA. He says it won’t be difficult, but some Republicans will view parts of USMCA as detrimental to business.
He says Democrats will have some issues with labor aspects of the agreement, “It’s my job as the chairman of the Senate Finance Committee to work with the Democrats and see what it can take to get them on board. We can do side letters, we can do a nexus to the agreement. But we won’t be able to renegotiate the agreement. So anybody that thinks that we ought to renegotiate, they’re really saying we ought to stick with NAFTA.”
If an agreement is not reached, Grassley says he hopes the U.S. does not pull out of NAFTA because that would remove a level playing field with neighboring countries.