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Fair trade groups seek big changes in USMCA renegotiation

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Suzanne Potter
(California News Service)

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The U.S.-Mexico-Canada trade deal is up for renegotiation in July and fair trade groups are pressing for major changes.

President Donald Trump replaced the North American Free Trade Agreement with the U.S.-Mexico-Canada Agreement six years ago during his first term.

Katie Hettinga, Rethink Trade program policy analyst for the American Economic Liberties Project, said the agreement failed to live up to the president's wide-ranging promises.

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"Trump said the deal would create hundreds of thousands of American jobs, that offshoring would end and U.S. industry would be revitalized, that the deal will fix our giant trade balance," Hettinga recounted. "The USMCA simply has not delivered."

The Trump administration has used fluctuating tariffs to try to improve the trade deficit. The report found manufacturing jobs are down and trade deficits have ballooned with both Canada and Mexico. In addition, more American companies are relocating their manufacturing facilities to Mexico, where wages remain far below those in the U.S. and China.

Hettinga argued the new agreement should promote transparency.

"We recommend that the United States reinstate mandatory country of origin labeling so that consumers can make informed decisions about where their food comes from," Hettinga emphasized. "In addition, include all stages of food production in food rules of origin.'

The report's authors want the negotiations to support higher wages in Mexico, saying it would disincentivize offshoring, strengthen Mexico's domestic market and increase demand for U.S. exports. The report recommended changing provisions of the trade deal to give farmers the right to repair their own equipment.

The nonprofit Trade Justice Education Fund is holding rallies in May and June to draw attention to the trade deal, including one on June 27 in San Diego.