White House Trade Announcements Explained

by: Peter Friedmann, Our Man in DC

Word is that White House and agency staff were scrambling last night to catch up with the President’s actions, which is why there remain a lot of unanswered questions this morning. We are working to get as much information as possible on how this policy will actually be implemented.
 
Note that President Trump is taking the action under the International Emergency Economic Powers Act, which allows the president to regulate trade to deal with "any unusual or extraordinary threat" to national security that warrants a national emergency. Recall that in February, Trump declared a national emergency on the border with Mexico to access funds for a border wall.
 
USMCA: The White House did in fact send a draft "Statement of Administrative Action" and text of the agreement to Capitol Hill on Thursday. Under Trade Promotion Authority (TPA), the Administration could formally send the agreement to Congress in 30 days, and if that were to happen, Congress would need to ratify the agreement within 120 days (by the end of September). With that all being said, submission of the draft statement and text does not guarantee that the Trump administration will submit the implementing bill for USMCA to Congress in 30 days. It is a procedural step that must be done at least 30 days before the administration sends over the implementing legislation for the bill.
 
If the Administration does in fact send the agreement to Congress in 30 days, it would likely backfire. Recall that when President Bush tried to force Speaker Pelosi’s hand on the Colombia FTA back in 2008, she simply used a procedural maneuver to delay consideration of agreement. 
 
 
Peter Friedmann
Pacific Coast Council of Customs Brokers and Freight Forwarders Assoc. – The PCC
1120 G Street, NW, Suite 1020  Washington, D.C. 20005
office: 202-783-3333   cell: 202 329 7040
ourmanindc@federalrelations.com