On January 7, the Senate Finance Committee cleared the implementing legislation (H.R. 5430) for the U.S.-Mexico-Canada Agreement (USMCA), setting up a vote in the full Senate.

The vote during the "mock markup" — a convention of trade legislation and so named because Congress cannot offer amendments to final implementing bills submitted by the Administration under the Trade Promotion Authority Act — was 25-3, with Senators Pat Toomey (R-PA), Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) voting against.

Chairman Chuck Grassley (R-IA) said the USMCA reflects the reality of modern commerce, including for the $1.3 trillion US digital economy, and that it corrects enforcement flaws of NAFTA and ensures that the parties will be held accountable to their commitments. He also said the process leading to the Committee's vote tested his patience and there are some aspects of the bill he doesn't like, but it nonetheless "has something in it for everyone, and it's not often that we can say that about an implementing bill."

Ranking member Ron Wyden (D-OR) said he and Senator Sherrod Brown (D-OH) are responsible for some of the enforcement improvements in the bill, "putting trade enforcement boots on the ground helping to identify when factories in Mexico violate labor standards" so the US can penalize violators.

Other members aired complaints about the bill. Several members complained about the timing of the mock mark-up given that it occurred after the House had already passed the agreement. Senator Toomey expressed concerns about the sunsetting nature of the USMCA, the additional labor protections and the removal of the intellectual property protection for pharmaceutical companies, among other issues. Senator Whitehouse complained the legislation doesn't do enough to address the climate crisis. Senator Robert Menendez (D-NJ), who ultimately voted for the agreement, expressed his concern that the legislation should have included a new cabinet-level inspector general at the United States Trade Representative to increase accountability.

Timing of the full Senate vote is unclear. The agreement was referred to six other Senate Committees including Health, Education, Labor and Pension (HELP); Environment and Public Works (EPW); Foreign Relations, Commerce, Science and Transportation; and Budget. These Committees have not announced whether they will consider the legislation. There is also the interplay with Senate action on the House articles of impeachment, which have not yet been transmitted between chambers. Chairman Grassley said the impeachment process could delay a vote by a month, Politico reported.

The bill and related materials are here.

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