Should NAFTA be Renegotiated On Better Terms for the U.S.? (H. Res. 132)

What is H. Res. 132?

(Updated March 22, 2018)

This resolution would express the sense of the House of Representatives that the president should start renegotiating the North American Free Trade Agreement (NAFTA) by June 1, 2017 and outline what a replacement trade agreement should look like. It would also request that the president renegotiate in a transparent manner and consider leaving NAFTA if all the provisions outlined for a new trade deal aren’t included in the core text of the new agreement with Canada and Mexico within one year of starting renegotiation.

The resolution requests that a new trade agreement:

• Include strong, binding, and enforceable labor and environmental standards.

• Not include protections for foreign investors; or undermine Buy America, Buy Local, or other standards for government procurement.

• Require all imported goods and services to comply with U.S. laws.

• Prevent foreign governments from using currency manipulation to undercut U.S. exports or subsidize through automatic corrective action.

• Require imported food and products meet U.S. safety, inspection, and labeling requirements including country-of-origin labeling requirements.

• Not require access to U.S. roads from vehicles domiciled in other countries.

As a simple resolution, this legislation would only be considered by the House and wouldn’t have the force of law, instead serving as collective statement by the chamber.

Argument in favor

NAFTA has disadvantaged American workers, and unless the U.S. can renegotiate the deal with Canada and Mexico on more favorable terms it should give serious consideration to leaving the trade partnership.

Argument opposed

NAFTA isn’t perfect, and good could come of renegotiating it on more favorable terms for American workers, but threatening to abandon NAFTA altogether makes a new deal with Canada and Mexico less likely.

Impact

The American economy and the workers and businesses that make it up; Canada and Mexico; Congress; and the President.

Cost of H. Res. 132

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Peter DeFazio (D-OR) introduced this resolution to lay out the principles that must be included in any NAFTA replacement, which he called “disastrous.” DeFazio added:

“For the first time in nearly a quarter-century, we have an opportunity to replace NAFTA and build a fair trade policy that works for all Americans. After working with labor stakeholders and fair trade advocates, we have come up with principles that will serve as the foundation of a sustainable trade policy that will bring jobs back to the U.S. while protecting America’s environment, workers, consumers, and sovereignty.”

This legislation has the support of 20 cosponsors in the House, all of whom are Democrats.

Media:

• Sponsoring Rep. Peter DeFazio (D-OR) Press Release
  
• Oregon Business Report
  
• Transport Topics
  
• Teamsters (In Favor)