Trump administration, Democrats make progress on new NAFTA

Congressional Democrats appear to be moving from "no way" to "maybe" on President Donald Trump's rewrite of a trade pact with Canada and Mexico.

House Democrats have met four times with U.S. Trade Representative Robert Lighthizer, most recently on Friday, and both sides say they are making progress toward a deal that would clear the way for Congress to approve Trump's U.S.-Mexico-Canada Agreement, or USMCA.

Democratic Rep. Earl Blumenauer of Oregon, who heads a House subcommittee on trade, declared a couple of months ago that there was "no way" Democrats and the administration could bridge their differences. Lately, he's reconsidered.

"In the course of the last two months, we have seen significant progress," Blumenauer said.

Negotiators so far have not offered details on where they're making progress. Democrats want the agreement to include stronger protections for workers and the environment.

They also are seeking to jettison a provision they see as a giveaway to big pharmaceutical companies.

Talks could still fall apart. Meetings between congressional staffers and officials from Lighthizer's office during Congress' August recess could prove critical.

House Democrats working on USMCA will submit text next week to the administration "memorializing the concrete and detailed proposals that we have made." They called on the administration to do the same.

"It is time for the administration to present its proposals and to show its commitment to passing the new NAFTA and delivering on its own promises," the Democratic lawmakers said.

Supporters of USMCA are pushing for a deal before the 2020 election campaign heats up, which could make it harder for Democrats and Republicans to compromise.

A senior administration official, who spoke on condition of anonymity to discuss internal deliberations, said there was growing optimism within the administration about USMCA's prospects amid signs that House Speaker Nancy Pelosi was willing to work toward a compromise.

"The smart money in Washington is that USMCA will pass this fall following a bargain," said Daniel Ujczo, a lawyer with Dickinson Wright in Columbus, Ohio, who specializes in North American trade.

"However, it is just as likely that we will be in a 'bump and blame' scenario where the president can blame Speaker Pelosi and Speaker Pelosi can blame the president." By ratifying the agreement, Congress could lift uncertainty over the future of U.S. commerce with its No. 2 (Canada) and No. 3 (Mexico) trading partners last year and give the U.S. economy a modest boost.

U.S. farmers are especially eager to make sure their exports to Canada and Mexico continue uninterrupted.

Rep. Cheri Bustos of Illinois, who oversees efforts to get Democrats elected to the House, said Pelosi "understands the sense of urgency" about USMCA among some lawmakers who represent rural districts.

"The hope is that we can get to a yes," Bustos said. "But first and foremost, it has to look out for working men and women in our country."