The Future of USMCA and Trade with China: A Conversation with Congressman Earl Blumenauer

The United States-Mexico Trade Agreement

On July 12, 2019, the Meridian Corporate Council partnered with MasterCard and Corteva to host Congressman Earl Blumenauer. Congressman Blumenauer provided insight on the United States Mexico Trade Agreement (USMCA) and China, detailing both the advantages and disadvantages associated with the decisions made.

The USMCA provides the United States with a unique opportunity. Although the agreement is still awaiting a vote, there are not many talks about getting rid of it. The majority of people agree that the North American Free Trade Agreement (NAFTA) needs to be ratified to an agreement, such as the USMCA, that contains the necessary language to increase the regulations for rapidly evolving industries, like E-commerce. It is clear that tremendous growth has occurred under NAFTA, but manufacturing workers have not shared in many of the benefits. The USMCA strives to correct this problem by including clauses that requires 75% of auto parts be made in the US, and 40% of each car be manufactured by workers making at least $16 per hour to avoid tariffs.

Congressman Blumenauer emphasized the importance of the legislative and executive branch using all of their tools to secure the best possible deals. Thus far, tariffs have been the driving force behind many negotiations with China and Mexico, but the impacts of tariffs have been severe. Recently, farmers have been put under extreme pressure, in large part, because of tariffs. The U.S government has spent billions of dollars attempting to aid famers during this time. However, Blumenauer fears that without correcting the underlying issues we will have to continue to settle for expensive short-term solutions. Blumenauer advocates for removing the political rhetoric during negotiations and focusing on substance, while listening to what the American people want to yield the best results.

Sponsors

Corteva Agriscience
Mastercard

Project summary

The Future of USMCA and Trade with China: A Conversation with Congressman Earl Blumenauer | July 2019
Number of Visitors: 1
Number of Attendees: 27
Regions: East Asia and Pacific, Western Hemisphere
Countries: China, Mexico, Canada, United States
Impact Areas: Business and Trade
Program Areas: Convening
Partners: Private Sector, Public Sector