Rep. Demings Votes for USMCA
Press Release
Today, U.S. Rep. Val Demings (FL-10) voted in favor of the renegotiated North American Free Trade Agreement (USMCA).
Said Rep. Demings, "This deal is not perfect, but after Democrats in Congress negotiated numerous substantial changes to the unacceptable initial draft, I will support it. America's workers and businesses can create endless opportunities when they are able to complete on an even playing field. However, increased economic output must translate to real quality of life gains for Americans. USMCA includes important new mechanisms to lower the cost of prescription drugs, defend the environment, and strengthen worker rights.
"Going forward, I remain concerned about defending American workers, as well as the high cost of prescription drugs for American families, and do not believe that this should be a model for future deals. Additionally, I have concerns regarding copyright protections for American companies and Section 230 of the Communications Decency Act, which gives internet platforms overly-broad immunity from liability, enabling a swath of illegal and destructive online behavior.
"While I look forward to future reforms around these issues, the USMCA overall is a constructive agreement which will open a door to future opportunities for Central Florida while protecting American workers from unfair competition."
Background
The original USMCA, as proposed by the White House, included major giveaways to the pharmaceutical industry and failed to protect American workers. It was rejected by trade negotiators in the House of Representatives, who negotiated over the course of several months for significant reforms.
The deal's main components are:
Creates certainty in the North American market and between the United States and its two largest trading partners in the wake of destabilizing trade action by this administration
Closes enforcement loopholes and streamlines the dispute settlement system, bolstering the strength of the underlying rules in each chapter
Significantly increases labor standards and makes them more enforceable by establishing an enhanced, rapid-response labor enforcement system to ensure partners live up to the agreement
Creates a digital trade chapter to allow more American goods and services to reach Mexican and Canadian markets, building a roadmap for future agreements
Expands agricultural market access, particularly in dairy markets, and improves sanitary and phytosanitary standards
Includes strong environmental standards and protections that are fully enforceable
Democratic changes to the deal include:
Crafting effective and meaningful labor standards and protecting worker rights;
Constructing an enforcement mechanism for the U.S. and Mexico (given their labor law reform);
Raising, strengthening, protecting, and enforcing environmental standards;
Protecting access to affordable medicines
Before and After Comparison:
ENFORCEMENT
Original USMCA Draft
Allowed Panel Blocking: Any country could block the formation of a dispute settlement panel, stopping an enforcement complaint from ever being heard.
Weak Enforcement Hearing Process: Enforcement proceedings would have been hampered by unclear procedures regarding evidence and treatment of witnesses.
Weak Labor Enforcement: Did not contain strong enough provisions to ensure that our trading partners live up to strong labor standards.
USMCA with Democrats' Changes
Prevents Panel Blocking: Democrats removed this language allowing a responding party to block the formation of a dispute settlement panel.
Rules of Evidence: Democrats added rules to help the United States more successfully litigate labor, environmental, and other fact-intensive disputes.
PROTECTING AMERICAN WORKERS
Original USMCA Draft
"Sustained or Recurring" Threshold for Anti-Worker Violence: would have required U.S. to prove that anti-worker violence was "sustained or recurring" before enforcement measures could be taken.
Stacked The Deck Against Labor Violation Claims: included a requirement that to prove a labor violation, the complaining party had to prove that it was "in a manner affecting trade or investment."
Self-Policing Forced Labor: allowed the parties to determine for themselves what measures were "appropriate," hampering enforcement.
Weak Labor Monitoring: did not provide enough resources or guidelines to adequately monitor that our trading partners are providing labor rights and living up to their obligations.
Weak Labor Enforcement: Did not contain strong enough provisions to ensure that our trading partners live up to strong labor standards.
USMCA with Democrats' Changes
Removes "Sustained or Recurring" Requirement so that acts of anti-worker violence can be more easily confronted and violations enforced.
Creates a new presumption that a labor violation affects trade and investment and will require the other government to prove otherwise.
Removes Self-Policing Loophole on forced labor.
Establishes Labor Attachés that will be based in Mexico and will provide on-the-ground information about Mexico's labor practices.
Establishes key benchmarks for Mexico's labor reform implementation process. Failure to comply with these benchmarks will lead to enforcement action under the agreement
Creates an interagency committee that will monitor Mexico's labor reform implementation and compliance with labor obligations.
Creates ongoing reporting requirements to Congress.
Established a New & Enhanced Labor-Specific Enforcement Mechanism:
Takes immediate effect upon entry into force of the agreement;
Provides for facility-based enforcement of labor obligations in the agreement within a rapid timeframe;
Covers all manufactured goods and all services traded between the United States and Mexico;
Requires verification of compliance by independent labor experts; and
Leads to penalties on goods and services that are not produced in compliance with the freedom of association and collective bargaining obligations
ENVIRONMENT
Original USMCA Draft
Stacked Deck Against Environmental Violation Claims: Included a requirement that to prove an environment violation, the complaining party had to prove that it was "in a manner affecting trade or investment"
Weak environmental rules: Failed to meet the standard set by House Democrats in 2007 that Parties had to adopt, implement and maintain seven multilateral environment agreements (MEAs).
Eliminated safeguard from NAFTA that prioritized MEA commitments when implementing MEA and trade agreement obligations.
Weak Environment Monitoring: Did not provide enough resources or infrastructure to adequately monitor that our trading partners are living up to their environmental obligations.
USMCA with Democrats' Changes
Creates a presumption that an environmental violation affects trade and investment and will require the other government to prove otherwise.
Eliminated safeguard from NAFTA that prioritized MEA commitments when implementing MEA and trade agreement obligations.
Restores protections that prioritize MEA commitments when implementing MEA and trade agreement obligations.
Establishes Environment-Focused Attachés in Mexico City that will regularly monitor Mexico's environment laws, regulations, and practices.
Creates an interagency committee that will
Conduct an assessment of the current environment landscape of Canada and Mexico;
Monitor implementation of the environment obligations and recommend enforcement actions;
Help coordination, utilization & funding of U.S. efforts to strengthen environment practices amongst parties.
PRESCRIPTION DRUGS
Original USMCA Draft
Locked in at least 10 years of market exclusivity for biologics, some of the most expensive drugs on the market.
Locked in Patent Evergreening: required the Parties to confirm that patents would be available for new uses of known products. This provision would have locked in the practice of "patent evergreening," in which pharmaceutical companies obtain hundreds of patents related to a product to block generic competition and price reductions.
Required three additional years of exclusivity for clinical information submitted in connection with new uses of previously-approved pharmaceutical products. This is another way that pharmaceutical companies delay competition and access to affordable medicines.
Failed to encourage competition in the drug markets.
Abandoned key principles to improve access to medicines that House Democrats included in previous U.S. trade agreements with Peru, Panama, and Colombia.
USMCA with Democrats' Changes
Provision removed
Provision removed
Provision removed
Bolsters Generics & Biosimilars:
Revised regulatory review provision to clarify the circumstances in which generic and biosimilar companies may use a patented invention so that they can obtain marketing approval on day one of patent expiration.
Revised data protection provision to incorporate limitations in U.S. law that foster generic competition.
Revised patent linkage provision to remove the "hard linkage" of regulatory approval and patent status. Under an annex to the agreement, Mexico must ensure that all interested parties receive notice and an opportunity to be heard. The revision also includes language that permits incentives for generic competition and improves transparency.
Revised patent term adjustment provision to provide non-exhaustive examples of limitations on the adjustment of patent terms for regulatory delays.
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