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1 1 (December 20, 2019)

handle is hein.crs/goveatu0001 and id is 1 raw text is: Congressional Research Service MarianeInforrning the legislative debate since 1914 S Updated December 20, 2019 USMCA: Amendment and Key Changes Overview * Free Trade Commission. The revised language dispute On December 10, 2019, the United States, Canada, and process by eliminating the consultative role of the Mexico agreed to a protocol of amendment to the proposed USMCA Free Trade Commission, which acts as a U.S.-Mexico-Canada Agreement (USMCA). The secretariat for the agreement, as an intermediate step to amendments include modifications to key elements of the resolve disputes. original text in regard to dispute settlement, labor and environmental provisions, intellectual property rights (IPR), Labor and steel and aluminum requirements in the rules of origin USMCA revised NAFTA by adding more enforceable labor for autos. On December 13, the Trump Administration provisions and an annex with Mexican commitments to submitted to Congress the proposed USMCA implementing reform its labor laws and practices. Numerous policymakers legislation, which also reflects the recent amendments. On remained concerned about enforcement and the full the same day, the United States-Mexico-Canada implementation of Mexican labor reforms. Amendments to Implementation Act (H.R. 5430) was introduced in the USMCA include the following: House of Representatives. On December 16, the companion bill was introduced in the Senate (S. 3052). The House * In a Manner Affecting Trade and Investment. Ways and Means Committee approved the legislation on Original provisions required a party to prove a violation December 17, 2020 and the full House approved it on regarding worker rights occurred in a manner affecting December 19 by a vote of 385-41. trade and investment. The amendment shifts the burden of proof by stating that a panel shall presume a violation U.S. Trade Representative (USTR) and some Members of affects trade and investment unless otherwise Congress negotiated proposed changes to the USMCA. demonstrated. USTR then negotiated the amendments with USMCA parties. Mexico was the first country to ratify the agreement * Forced Labor. Text on forced labor commitments was in June 2019 and approve the amendments by a 107-1 vote changed by removing language that a party could adopt in the Mexican Senate on December 12. Canada's measures it considered appropriate to stop the Parliament is expected to ratify it in early 2020. importation of goods produced by forced labor. The Congress is considering USMCA under TPA rules, which is modified language is intended to close what some saw the time-limited authority that Congress uses to consider as a possible loophole. implementing legislation for trade agreements under * Violence Against Workers. Language that a party expedited procedures, provided that they meet certain would have to prove that a violation was in a sustained statutory requirements. Under TPA, Congress has a or recurring pattern was removed. In addition, the maximum of 90 legislative days to vote on the agreement. amended agreement shifts the burden of proof to the Dispute Settlement responding party by stating that a panel shall presume Some Members of Congress criticized the 1994 North that a failure to comply affects trade or investment American Free Trade Agreement (NAFTA), and unless the responding party demonstrates otherwise. subsequent USMCA, for an ineffective dispute settlement * Rapid Response Mechanism. A new rapid-response process. The NAFTA mechanism was used for 3 cases in its mechanism would provide for an independent panel 25-year history, the last in 2000. The amended USMCA investigation at covered facilities, as opposed to a includes the following: government inspection, for suspected denial of the right of free association and collective bargaining. For the Panel Blocking. The revisions prevents the ability of a United States, covered facilities would be limited to party to block establishment of a dispute settlement those that have previously been proven to have violated panel by ensuring the formation of a panel in cases U.S. law. For Mexico, a claim can be brought only with where a party refuses to participate in the process of respect to an alleged worker rights violation under selecting panelists. Mexico's labor reform commitments under USMCA. Violations could result in a suspension of preferential Rules of Procedure. The amendment revises the tariffs or potential penalties on goods manufactured at or guidelines for the Rules of Procedure for panels to give services provided by the covered facility. the parties the right to submit testimony, the right to test the veracity of submitted testimony, the right to submit * Mexico's Labor Reform Monitoring. USMCA anonymous testimony, and for the panel to accept implementing legislation creates a new interagency agreed stipulations prior to a hearing, among other committee and reporting requirements to Congress on issues. Mexico's implementation of labor reforms. Also establishes key benchmarks for Mexico's https://crsreports.conqress.gov

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