Congress should “act quickly” to ratify the U.S.-Mexico-Canada Agreement on free trade, said the National Electrical Manufacturers Association Wednesday. “Our neighbors to the immediate north and south are not only major markets for our Members' products but also supply chain and manufacturing partners." USMCA “includes many provisions that advance cooperation with our Canadian and Mexican counterparts to address business costs in North America and boost our global competitiveness," NEMA said. It urged the U.S. and Mexico Friday to “reach an understanding that will prevent the imposition of U.S. tariffs” on Mexican imports (see 1905310014).
So grave would be the "ripple effect" damage to Americans if President Donald Trump makes good on his threat to impose tariffs on Mexican imports that the U.S. Chamber of Commerce won’t rule out mounting a legal challenge to block the duties, said the business group’s chief policy officer. "We have no choice but to explore every option available to push back,” Executive Vice President Neil Bradley told journalists Friday. To stem the influx of migrants at the southern border, Trump will use authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose 5 percent tariffs on Mexican imports starting June 10, the president said. “If the crisis persists,” he would hike the duties to 10 percent July 1, 15 percent Aug. 1, 20 percent Sept. 1, and 25 percent Oct. 1.
The U.S.-Mexico-Canada Agreement on free trade “would strengthen U.S. technological and trade leadership, and advance U.S. firms’ ability to grow platforms and services that enable engagement with the Internet and the digital economy,” wrote CTA, the Information Technology Industry Council, Internet Association and nine other tech groups Sunday to House Ways and Means and Senate Finance Committee leadership, urging USMCA approval. “As Congress considers the many important provisions in the USMCA, we urge lawmakers to take into account the significance of the digital trade rules on the U.S. economy and vote to adopt,” they said. “Passing the USMCA quickly is a critical opportunity to shape global trade rules.” When the North American Free Trade Agreement was implemented 25 years ago, “there were no digital provisions,” they said. “Today, the U.S. tech industry is facing a number of challenges from foreign governments seeking to displace U.S. technology leadership. American companies are especially under threat from discriminatory policies, market-distorting industrial policies, and inadequate intellectual property protection and enforcement in China.”
The U.S.-Mexico-Canada Agreement on free trade “would modernize and strengthen protections for Americans' copyrighted works,” but “takes a decidedly un-modern approach to online copyright infringement that takes place on user-upload websites” like YouTube, blogged Free State Foundation Senior Fellow Seth Cooper Thursday. USMCA “could perpetuate the significantly under-protective notice and takedown system that prevails in U.S. copyright law,” he said. The Trump administration and Congress “should make clear that the USMCA's online infringement provisions are not precedent for future trade agreements,” he said.
The U.S.-Mexico-Canada Agreement (USMCA) on trade “is likely to have a significant, positive impact on the many U.S. industries that rely on cross-border data flows and digitally enabled trade,” said an International Trade Commission report to Congress Thursday. Tech groups hope this hastens USMCA congressional approval. The U.S. telecom industry would gain increased access to “networks and interconnection provisions” if USMCA became law, said the report. The agreement’s “digital trade-facilitating provisions” and “explicit data flow protections” would also boost e-commerce, it said. U.S. e-commerce firms are likely to benefit from protection against data flow restrictions and forced localization, said ITC. “Up to now, firms have largely been able to transfer data freely between the countries,” it said. “However, no current policies protect this free flow of data from future policies that might restrict it. The commitments in USMCA address this regulatory uncertainty by providing assurance to firms that current conditions will be maintained.” Updating the North American Free Trade Agreement “was much needed and the USMCA is a welcomed step forward in modernizing trade among strong U.S. trading partners and enabling digital trade,” said Computer & Communications Industry Association CEO Ed Black. This is “an important step in the congressional approval process of USMCA,” said Jordan Haas, Internet Association director-trade policy. IA urges "swift action" in Congress to approve it. Other tech groups said similar.
More than 200 companies and trade associations banded together Tuesday to launch the USMCA Coalition with the goal of promoting congressional ratification of the U.S.-Mexico-Canada free-trade agreement. BSA|The Software Alliance, CompTIA, Engine, the Information Technology Industry Council, MPAA and Telecommunications Industry Association belong, but CTA isn't listed as a member. CTA representatives didn’t comment Tuesday. The U.S. Chamber of Commerce backs the coalition because it “has long supported the benefits of free and open trade,” blogged the group Tuesday.
Most stakeholders support the proposed United States-Mexico-Canada Agreement in allowing individual countries to set privacy laws while promoting Asia-Pacific Economic Cooperation privacy rules, Wiley Rein international trade attorney Stephen Claeys blogged Thursday. USMCA goes “farther than those in the Trans-Pacific Partnership agreement in requiring data protection and promoting compatibility.”
Calling it "win for digital trade," BSA|The Software Alliance CEO Victoria Espinel, noted the U.S.-Mexico-Canada Agreement has a default rule that data can move across borders. Ratification of the North America Free Trade Agreement replacement could be "one of the steps toward ... an international consensus on data," she said Thursday at the Washington International Trade Association. Espinel described USMCA as a great template for future negotiations with Japan and with the EU but "the next version could be better." She would like to see stronger language on encryption, with explicit language not allowing back doors for encrypted messages. She wants language to prohibit governments from using "cybersecurity as a pretext for protectionism" and from requiring disclosure of algorithms or source codes to get market access.