New Democrat Coalition Leaders Tell Lighthizer to Leave de Minimis Alone

Several leaders of the New Democrat Coalition met with U.S. Trade Representative Robert Lighthizer late July 25, and told him that they want him to treat negotiations with the working group on the new NAFTA with a sense of urgency. "Congress members are starting to say, 'Let's get down to brass tacks and figure out how specifically these issues can be addressed," said Rep. Derek Kilmer, chairman of the New Democrats. Kilmer, D-Wash., who described the meeting in a short hallway interview after it concluded, said Rep. Lizzie Fletcher, D-Texas, and Rep. Rick Larsen, D-Wash., also met with Lighthizer.

Kilmer said that if the administration makes changes to the U.S.-Mexico-Canada Agreement's enforcement, environmental and labor provisions, along with its biologics data exclusivity period, "a lot of [Democratic] members could get on board, not just our coalition." The New Dems have traditionally been the pro-trade caucus among House Democrats. Kilmer said the wider support could come "in part because there's discontent with the status quo."

One area where New Dems want to preserve the status quo, however, is the $800 de minimis standard established in 2015. There is a footnote in the USMCA that says that the administration might lower de minimis for Canada and Mexico, because their de minimis levels are much lower. Kilmer said they brought it up in the meeting, and though Lighthizer did not say what he thought, "he took notes and listened."

Kilmer said the group also talked about the strategy of moving another piece of legislation in tandem with USMCA, such as a proposal to lower prescription drug costs, or an infrastructure bill. When asked by International Trade Today if Lighthizer said that would add too much complication to a task that is already hard enough, Kilmer replied: "He didn't say that. He may think that, but he didn't say that."