Members of the Senate Finance Committee on June 21, 2017, questioned United States Trade Representative Robert Lighthizer about the Administration's views on issues like intellectual property (IP) protections ahead of a planned renegotiation of the North American Free Trade Agreement (NAFTA), as well as about the timing of that renegotiation.

In May, Lighthizer notified Congress that the President will conduct negotiations with Canada and Mexico with respect to NAFTA. Following a 90-day period of consultations with the public and Congress, negotiating rounds can begin as soon as August 17, and Lighthizer said today it is the Administration's intention to act on that timeframe.

In an opening statement, Chairman Orrin Hatch (R-UT) said the renegotiation can make the region "a more attractive investment and manufacturing hub and serve as a counterweight to China." During questioning, Hatch also raised concerns about India's treatment of US goods, including insufficient protection of IP rights and price controls, ahead of a meeting between President Trump and Prime Minister Narendra Modi.

Ranking Member Ron Wyden (D-OR) said despite President Trump's long-time focus on NAFTA, neither the Congress nor the public has much of an idea of what the Administration is looking for in the discussions. Senator Wyden said he thinks NAFTA could use a complete overhaul that includes high-standard, enforceable labor and environmental commitments. Wyden continued to call for trade agreements to protect access to American-made digital products and for action when countries block those products.

In response to Wyden's assertion that the Administration's timeline for completing negotiations with Canada and Mexico may be overly ambitious, Lighthizer said NAFTA would be renegotiated as quickly as possible, but without an artificial deadline.

Lighthizer provided assurance that IP protections are a priority in the negotiations with Canada and Mexico, and are an area in which the current agreement is probably deficient. He said the Administration has issues with both countries in terms of IP protections, and hopes to make the renegotiation a model agreement, covering patents, copyrights, trademarks, and IP across the board.

Senator Robert Menendez (D-NJ) also said there are many chapters of NAFTA that are outdated and new provisions are required to address IP rights, and asked how the Administration will promote the interests of US industries such as the biopharmaceutical sector. Lighthizer repeated that the Administration knows there are deficiencies with respect to Canada and Mexico in the IP area and hopes to have a model agreement.

Senator Debbie Stabenow (D-MI) raised the issue of currency manipulation and asked whether enforceable currency standards would be included in a renegotiated NAFTA. Lighthizer said he has been an outspoken critic of currency manipulation and that the Administration is still debating whether to address the issue, which has generally not been a problem with Canada and Mexico.

Opening statements by Senators Hatch and Wyden are attached, along with Lighthizer's testimony.

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ATTACHMENTS

Wyden Statement

Hatch Statement

Lighthizer Testimony