The February 12 Senate Finance Committee hearing, "The U.S.-Mexico-Canada Agreement: Evaluating North American Competitiveness," included discussion of potential reforms to the USMCA ahead of the joint review of the 2020 free trade agreement, with recommendations ranging from modest to significant changes to labor, environmental, agricultural, and other provisions. There were concerns expressed on a bipartisan basis regarding tariffs imposed on the other nations under the agreement.

Chairman Mike Crapo (R-ID) said the review provides the US an opportunity to assess whether commitments under the agreement have been delivered as intended, and he believes the answer is largely 'yes.' He said he has "long called for more robust enforcement of USMCA commitments — including, but not limited to, ag biotech, dairy, digital trade, energy, financial services and intellectual property" — but believes the perfect shouldn't become the enemy of the good and "This trilateral relationship should not be taken for granted."

Ranking Member Ron Wyden (D-OR) noted that the House this week voted to repeal tariffs on Canada, which he said were imposed despite the USMCA and without the support of Congress. He praised the USMCA but urged stronger enforcement actions. "USTR should use this six-year review to deliver for American farmers, workers, and small businesses," Wyden said. "USTR must ensure Americans get what they bargained for, but that's going to take a partnership with Congress, a commitment to enforcement, and transparency with the public."

More information is available in the attached WCEY Trade Alert.