With Agreement to Ratify USMCA, Tech Urges Congress to Get It Done
Tech and business groups hailed the pact announced Tuesday between House Democrats and U.S. Trade Representative Robert Lighthizer on legislative terms to ratify the U.S.-Mexico-Canada Agreement on free trade. There’s “no question” USMCA is “much better” than the North American Free Trade Agreement, said House Speaker Nancy Pelosi, D-Calif. “In terms of our work here, it is infinitely better than what was initially proposed by the administration.”
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Democrats' "constant emphasis" in months of negotiations with USTR Lighthizer was on "enforceability, enforceability, enforceability" of workers' rights and environmental protections, said House Ways and Means Chairman Richard Neal, D-Mass. "We fixed that," he said. "These were intense, argumentative, angry negotiations." But both sides "knew this was an opportunity that we couldn't let get away," he said.
House Democrats "closed enforcement loopholes" in USMCA and "streamlined the dispute settlement system to ensure that our trading partners live up to their commitments," they said Tuesday. They "demanded" and won "new mechanisms and resources to ensure that the U.S. Government effectively monitors compliance with the agreement’s labor obligations specific to Mexico," they said.
USMCA "will be the model for American trade deals," said Lighthizer. "After working with Republicans, Democrats, and many other stakeholders for the past two years we have created a deal that will benefit American workers, farmers, and ranchers for years."
Tech interests doubled down in urging Congress to use Tuesday's opportunity and ratify USMCA with no further delay. “The uncertainty that builds each day the new NAFTA isn’t passed means our global competitors get stronger,” said CTA President Gary Shapiro. “As American workers, businesses and our economy struggle under the weight of tariffs -- as they have for over a year now -- passage of new digital trade provisions will establish the certainty and structure they require for a much-needed boost.”
The “landmark digital trade provisions” in USMCA promote the seamless flow of data across borders and support U.S. companies “that deliver or rely on digital services,” said Jason Oxman, CEO of the Information Technology Industry Council. “Ratification is critical and represents a major step forward for small and large businesses.”
The Semiconductor Industry Association welcomes the agreement and urges “swift” USMCA ratification, blogged CEO John Neuffer. USMCA is “a big win for free trade and America’s global technology leadership,” he said. It “strengthens American competitiveness and innovation by prohibiting forced transfer of source code and algorithms,” and ending “requirements for costly and duplicative product testing and certification,” said Telecommunications Industry Association CEO David Stehlin. Its “risk-based approach to cybersecurity and new protections for trade secrets are also vital for digital trade and industry competitiveness.”
The Computer & Communications Industry Association views USMCA as a “welcome update” to NAFTA, which was negotiated in the “infancy” of the commercial internet, said CEO Ed Black. “With so many traditional businesses relying on the internet to deliver products and services globally,” USMCA’s provisions will “help boost future economic growth,” he said.
The deal is “welcome news to the software industry, and businesses of all sizes across the economy who rely on data,” said Craig Albright, BSA|The Software Alliance vice president-legislative strategy. Software "depends on the rapid and seamless movement of data across borders," he said. "The USMCA establishes a gold standard for rules on digital trade. Congressional action on the USMCA is critical to securing American leadership in the digital economy into the future.”
It's a “landmark agreement” that contains “the strongest digital and intellectual property chapters found in any free-trade agreement,” said CompTIA Executive Vice President-Advocacy Cinnamon Rogers. That will “foster innovation for American companies across industries." It's “an important step in building America’s economic leadership across every sector,” said Internet Association CEO Michael Beckerman. “The strong digital provisions in the agreement will benefit businesses of all sizes in every state by helping them reach new markets and customers.”
The “positive step forward” has retailers “very encouraged,” said National Retail Federation CEO Matthew Shay. USMCA “takes many important steps to modernize” NAFTA to “reflect today’s global and digital economy,” he said. The U.S. Chamber of Commerce is “optimistic” the agreement opens "the door to final approval of USMCA on a bipartisan basis” this year, said CEO Thomas Donohue.