CCAGW Annual Ratings

United States-Mexico-Canada Trade Agreement – Passage


Passage of the bill that would that would implement the trade agreement reached between the United States, Mexico, and Canada that replaces the North American Free-Trade Agreement. It would modify existing trade law to provide for implementation of the agreement, authorize federal agencies and other entities to implement and enforce provisions of the agreement, and authorize or appropriate more than $2 billion in funding for certain implementation activities. Among other provisions, the bill would require the Treasury and Labor departments to issue regulations to implement trade provisions in the USMCA and outline classification standards for the origin of goods under such provisions. It would require the establishment of interagency committees related to implementation and enforcement of the agreement's provisions related to automobiles, environmental obligations, and labor obligations. It would provide for additional enforcement and monitoring mechanisms related to forced labor, labor reforms in Mexico, and remedies for labor rights violations. It would require the EPA to construct and maintain facilities to treat wastewater and pollution sources resulting from transboundary water flows originating in Mexico. It would provide for transition procedures in the case of withdrawal of any country from the agreement. The bill would authorize $1.5 billion for the North American Development Bank, a binational institution that funds environmental infrastructure projects in the U.S.-Mexico border region, and it would require the bank to prioritize the financing of projects related to water pollution. It would make supplemental fiscal 2020 appropriations to provide $300 million for Environmental Protection Agency grants for construction of wastewater facilities in the U.S.-Mexico border region; $210 million for Labor Department international grant programs, including $180 million for grants to support labor justice system reforms in Mexico; $40 million for enforcement of environmental obligations under the USMCA; and $16 million for National Oceanic and Atmospheric Administration activities related to addressing marine debris and combating illegal and unregulated fishing in coordination with Mexico. The USMCA, which would be implemented by the bill, would increase from 60%-62.5% to 75% the North American content threshold for automobiles to qualify for duty-free access, and it would establish additional thresholds for steel and aluminum content and content made by workers earning at least $16 per hour. It would establish trade regulations for products created using agricultural biotechnology. It would require signatories to implement and maintain certain multilateral environmental agreements to which they are already signatories, and to adopt and maintain certain internationally recognized labor rights, including to prohibit the importation of goods produced by forced labor.

Vote Number: 
Senate Vote 14
Bill Number: 
HR 5430
CCAGW Position: 
Vote Results: 
Passed (thus cleared for the president) 89-10 : R 51-1; D 37-8; I 1-1