Framework of revised deal appears promising
As the Trump administration notifies Congress of its intent to sign a trade deal with Mexico in 90 days, the Coalition for a Prosperous America (CPA) has expressed support for the new agreement’s framework. CPA members believe US Trade Representative Robert Lighthizer and President Trump have put forward a new trade arrangement with Mexico that is moving in the right direction for both domestic manufacturing and worker interests. CPA is hopeful that, as more details emerge, it will be clear that the agreement fully addresses concerns regarding America’s trade deficit with Mexico.
“President Trump and Trade Representative Lighthizer are doing a good job rebalancing the relationship between workers, domestic companies and global companies,” said Dan DiMicco, Chairman of CPA. “America continues to run a large trade deficit with Mexico each year, and we’re pleased that the administration is working to address the loss of jobs and industries that were caused by NAFTA.”
CPA supports Ambassador Lighthizer’s efforts as he submits the agreement to Congress. Specifically, the administration is starting a fast track process that will require approval of the agreement by Congress within 90 days.
“What we’ve seen so far appears promising,” said Michael Stumo, CEO of CPA. “We’re hopeful that the administration will address, either in the agreement or separately, both beef country-of-origin labeling concerns and trade deficit problems driven by America’s overvalued dollar. Doing so would greatly increase support for the entire package.”
America’s trade deficit with Mexico has grown substantially since the North American Free Trade Agreement (NAFTA) was implemented in 1994. CPA is encouraged that the administration will seek stronger “rules of origin” standards, including an increase to 75 percent for auto content being made in the US and Mexico. CPA believes strong rules of origin are necessary to prevent China and other countries from shipping product through Mexico to the US.
CPA members are also concerned about a persistent overvaluation of the US dollar. CPA favors unilateral measures to ensure a competitive dollar price that will aid in eliminating the nation’s massive overall trade deficit. Reducing trade shortfalls with nations like Mexico will help to increase wages for US workers and grow domestic production.
About CPA: The Coalition for a Prosperous America is the nation’s premier organization working on the intersection of trade, jobs, tax, and economic growth. We represent the interests of 4.1 million households through our agricultural, manufacturing, and labor members.