MNI INTERVIEW: Ex-Trump Aide Dearborn Sees USMCA Passing Soon

By Alexandra Kelley

     WASHINGTON (MNI) - U.S. Democrats will support ratifying the trade pact

President Donald Trump negotiated with Mexico and Canada in the next few weeks

because of stronger labor and environment rules, former Trump staffer and

Chairman of the Pass USMCA Coalition Rick Dearborn told MNI.

     Democrats have been waiting on updates regarding labor and environmental

protection and enforcement, primarily concerning Mexico, and Dearborn said any

revisions included in their counterproposal will include these issues. The new

trade deal already improves on the pact it will replace, he said, because

"unlike NAFTA, the USMCA environmental provisions are fully enforceable."

     Lack of infrastructure and financing to enforce USMCA regulations in Mexico

has been a concern for the nine-member Democrat working group, preventing the

bill from moving to the Senate floor for a vote. Trump for months has said USMCA

is a good deal and should be ratified, after being elected in part by assailing

Mexico for cheating on trade with cheap labor and lax regulations.

     Dearborn says changes like the $16 per hour minimum wage should assuage

Democrats' concerns. Additionally, the 75% regional value requirement would

create jobs and strengthen North American manufacturing, benefiting both U.S.

and Mexican workers. The new deal already covers enforcement and labor

provisions, he said, something Trade Representative Robert Lighthizer's

officials should be able to prove soon, he said. 

     "I think there are ongoing, probably even daily meetings with USTR to kind

of walk through all of these outstanding items that members would like to hear

from USTR about and get answers from, on top of the letter exchanges which have

been a real good kickstart and healthy and allowed us to kind of paint a target

on these issues of focus," Dearborn said.

     He anticipates ratification between late October and early November.

Dearborn served as Trump's deputy chief of staff from January 2017 to March

2018, and the trade group he helps lead represents companies such as Cargill and

Domino's.

     House Speaker Nancy Pelosi has said "we are on a path to yes," citing

positive back-and-forth and strong bipartisan support. Dearborn said "the

momentum is all going in the right direction."

     Asked if a possible impeachment and the 2020 presidential campaign could

delay passing USMCA, Dearborn emphasized trade is a separate issue. "I have

faith the administration and Congress can walk and chew gum at the same time,"

he said.

--MNI Washington Bureau; +1 202 371 2121; email: alexandra.kelley@marketnews.com

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