Americas Act House Sponsors Say Political Will Needed; WH Gives Qualified Support
Former Sen. Chris Dodd, special presidential adviser for the Americas, said that the administration welcomes the Americas Act (see 2403060033), a bill that proposes setting country-by-country de minimis levels, and instructs the administration to reconsider U.S. tariffs "with the focus on the principle of reciprocity" for most favored nation rates and to open a dialogue with Mexico and Canada on allowing Costa Rica and Uruguay to join USMCA. It also would exclude Chinese and Russian shippers from de minimis eligibility, allow Ecuador and Uruguay to use Caribbean Basin Trade Partnership Act tariff benefits for certain goods, "with the goal of an eventual full-scale FTA with Uruguay and Ecuador," and asks the administration to make it so goods across Western hemisphere free trade agreements could cumulate among those agreements -- so Costa Rican content could be added to Colombian and Mexican content, for instance.
Dodd said at the Washington Conference on the Americas May 8 that those who like the proposal "don't have to agree" with every detail to see its worth. He said that while the administration doesn't endorse the bill -- "they rarely endorse anything until final product" -- they welcome the effort.
He said while the administration and Americas Act sponsors have differences in their approach to trade with Latin America, in essence, the Americas Partnership for Prosperity and the Americas Act share the same "essence" -- encouraging economic development in the region.
The conference also hosted the House sponsors of the bill, Reps. Maria Elvira Salazar, R-Fla., and Adriano Espaillat, D-N.Y. Salazar said that the Americas Act "sends a message to the Latin American countries if they shape up, or they improve," by respecting the courts, freedom of speech, maintaining or restoring democracy and opening up their markets, they will go on the list to join USMCA, what she called "the big boys club."
Espaillat said that "beyond the incentive that it creates for countries to be democratic, to respect the rule of law, to really work within the parameters of what strong democracy should be," it also offers grants and loans for moving production to the Americas, with grants earmarked for the textile and apparel and medical device industries.
"We should reward our friends," Espaillat said. "For too long, we looked elsewhere, and now we’re paying the price."
Council of the Americas Vice President Eric Farnsworth asked the two what's needed to get the bill through Congress.
Espaillat said Commerce Department officials have been talking with Americas Act sponsors about their suggestions to strengthen the bill.
Salazar said that "we have understood that the White House likes this bill," but said political will among both Republicans, who control the House, and Democrats, who control the Senate, would be needed.
The bill includes provisions that would liberalize legal immigration in some job categories for countries in the region. House Republicans have not wanted to open up immigration issues this Congress, even when the Senate came up with an enforcement-focused bill with bipartisan support in that chamber.