By Jessica Domel
Multimedia Reporter
Following the seventh round of re-negotiation talks in Mexico City, Congressman Kevin Brady of Texas remains hopeful a new and improved North American Free Trade Agreement (NAFTA) is on the horizon.
Brady, chair of the House Ways and Means Committee, recently led a bipartisan Congressional to the re-negotiation talks in Mexico City.
“I was very encouraged by this seventh round. I think they made real, solid progress, especially on the nuts and bolts issues that make for good trade agreements, like regulation, making sure small and medium-sized enterprises can trade (and) issues like that,” Brady said in an interview with the Texas Farm Bureau (TFB) Radio Network. “I sensed they’re getting close on some of the economic areas that can create jobs such as energy, telecommunications, agriculture and digital trade.”
Brady said he was encouraged by the discussions held on food security regulations that can sometimes tie up agricultural products intended for sale in Mexico and Canada.
“I saw some good progress there, as well,” Brady said.
The purpose of the trip, according to Brady, was to show there is strong support for a new and modern NAFTA in Congress from lawmakers on both sides of the aisle.
“Secondly, we wanted to see the negotiations on the ground, touch base with our U.S. business and agriculture leaders, leaders from Mexico and Canada and also to be able to share our views with the U.S. trade team,” Brady said. “It was a quick trip, but I came out of it very encouraged.”
The bipartisan delegation met with American business and agricultural leaders, the American Chamber of Commerce in Mexico City, the top economic and labor ministers from Mexico and the Canadian Minister of Foreign Affairs.
“What’s clear, and I don’t think it’s being reported much, is there is a strong commitment from the U.S., Canada and Mexico to finalize a pro-growth, modern, pro-job NAFTA,” Brady said. “We’ve all worked on trade agreements a long time, and we know the toughest issues are always held to the last. I think we’re getting to the point where they’ve reached enough agreements that the next issues are going to be a little tougher, but that’s the way it ought to be.”
Trade negotiations are not easy, Brady said, but NAFTA is a 24-year-old trade deal that needs to be updated.
“It doesn’t really reflect the economy in America, Mexico or Canada. At the end, I think there are big wins for America, as well as Mexico and Canada, in a modern NAFTA. Maybe more importantly, when you do it right, all three of us are going to be more competitive against Asia, China and Europe in competing and winning here and around the world. I think that’s the most important thing.”
Although there has been some concern no deal will be made or the U.S. will exit NAFTA before a final agreement is reached, Brady said he believes a renegotiated trade deal will be reached.
“The point from agriculture is, ‘Look, this is a good agreement, but can it be improved and can there be some modifications? Absolutely,’” Brady said. “I think the first priority was to do no harm, and when there are changes for a new, modern NAFTA, make sure it’s done in a seamless way with the existing agreements. That’s what I sense going forward. Now, there could be big roadblocks in the way. That’s part of the negotiations, but at this point in the process, they’re making good progress. I don’t see any reason that it shouldn’t be concluded in a positive way.”
Late last week, President Donald Trump tweeted his intent to impose a 25 percent tariff on steel imports and a 10 percent tax on aluminum.
That sparked concerns with American trade partners, including both Canada and Mexico. It caused some worry the move would jeopardize NAFTA talks.
“I think the president is absolutely right in going after the steel and aluminum that’s unfairly traded. That does hurt American workers, but you’ve got to exempt the fairly traded steel and aluminum so you don’t hurt U.S. manufacturers and industries that use steel and aluminum,” Brady said. “The other thing is you have to do it in a good, smart way so