Washington, D.C. (WVDN) – Congresswoman Carol Miller (R-WV) joined Trade Subcommittee Chair Adrian Smith (R-NE) and 10 of their Ways and Means Committee colleagues in sending a letter to United States Trade Representative (USTR) Katherine Tai. The letter expresses concern regarding reports USTR is negotiating new binding interpretations of key provisions within the U.S.-Mexico-Canada Agreement (USMCA) and the U.S.-Colombia Trade Promotion Agreement. The lawmakers call on USTR to refrain from finalizing any new terms for these agreements and instead use President Biden’s remaining days in office to seek input from Congress and American stakeholders.
Joining Representatives Miller and Smith in signing the letter are: Representatives Claudia Tenney (R-NY), Lloyd Smucker (R-PA), Aaron Bean (R-FL), Jodey Arrington (R-TX), Beth Van Duyne (R-TX), Ron Estes (R-KS), Mike Kelly (R-PA), Rudy Yakym (R-IN), Max Miller (R-OH), and David Schweikert (R-AZ).
Click here for the full letter.
On concerns regarding the impact negotiating new agreements could have on U.S. investors:
We write to express concern regarding recent reports indicating that the Office of the U.S. Trade Representative (USTR) is considering revisions or new binding interpretations of the existing investor-state dispute settlement (ISDS) provisions within the U.S.-Mexico-Canada Agreement (USMCA) and the U.S.-Colombia Trade Promotion Agreement. We urge you to halt any lame-duck negotiations with foreign governments on this or other trade or investment issues and instead seek stakeholder input, consult Congress, and refrain from taking any actions that may jeopardize our national interests or create confusion with trading partners about the positions held by the current administration versus the immediately incoming administration.
USMCA made numerous changes to investor protections included in the North American Free Trade Agreement (NAFTA). However, the agreement ensured pending NAFTA arbitrations would remain unaffected and established a three-year phase-out period during which investors could pursue claims under NAFTA rules. For instance, Vulcan Materials Company reportedly relied on this phase-out period to file an ancillary claim in a pending NAFTA arbitration against Mexico, seeking compensation for Mexico’s unlawful shutdown of Vulcan’s quarry and port in Mexico in May 2022. Any alterations or reconsiderations through binding interpretations of these critical provisions could undermine the positions of U.S. investors involved in pending arbitrations; therefore, USTR must seek comprehensive stakeholder input before proceeding with any joint interpretation. Rather than seek to reach an agreement with trading partners at the very end of the Biden Administration, USTR should make recommendations to the incoming Trump Administration on these issues. The incoming administration can then consult with Congress and stakeholders and determine whether to pursue such interpretations with Mexico and Canada during the upcoming 2026 USMCA review, which is approaching rapidly.
On the importance of including the new Congress in conversations and pausing negotiations:
It is unacceptable for USTR to attempt to change provisions of both trade agreements through lame-duck revisions or binding interpretations without adequately consulting Congress. The lack of communication and transparency during these last-minute, backdoor efforts and negotiations raises significant doubts about whether the proposals align with congressional intent and our national interest. Additionally, now that the 119th Congress is seated, it is only appropriate for you to consult with the new members, chairs, and ranking members of the committees of jurisdiction before engaging with foreign partners on any potential agreements.
While robust consultation about priorities for negotiating new or improved comprehensive trade agreements would have been welcome earlier in President Biden’s term, it is too late in the term to conduct meaningful consultation that should be the precondition for any such agreements. We are deeply concerned that proceeding with these contemplated interpretations could unacceptably compromise the integrity of existing agreements, undermine the next administration’s trade agenda, and erode protections for U.S. investors.
As the 119th Congress begins and our Nation prepares for a new presidential administration, we urge USTR to halt these negotiations immediately and provide timely updates on any relevant developments to Congress.
