WASHINGTON, April 29 (Xinhua) -- An influential U.S. Republican senator has warned that Congress will not approve the U.S.-Mexico-Canada Agreement (USMCA) unless the Trump administration lifts steel and aluminum tariffs on Canada and Mexico.
"If these tariffs aren't lifted, USMCA is dead. There is no appetite in Congress to debate USMCA with these tariffs in place," Senate Finance Committee Chairman Chuck Grassley wrote in a Wall Street Journal op-ed published on Monday.
"These levies are a tax on Americans, and they jeopardize USMCA's prospects of passage in the Mexican Congress, Canadian Parliament and U.S. Congress," he argued.
The Trump administration last year imposed punitive tariffs on imported steel and aluminum in the name of national security, prompting retaliatory tariffs on American exports from the European Union (EU), Canada, Mexico and other trading partners.
"Many Americans have been harmed by retaliatory tariffs. Mexican tariffs on U.S. pork, to take one example, have lowered the value of live hogs by $12 an animal," Grassley wrote, noting the negative impact of tariffs on his home state.
"Iowa is the top pork-producing state in the country. That means jobs, wages and communities are hurt every day these tariffs continue -- as I hear directly from Iowans. It's time for the tariffs to go," he said, suggesting the Trump administration can take the lead by promptly lifting tariffs on steel and aluminum from Canada and Mexico.
The USMCA, signed by leaders of the three countries late last year to replace the North America Free Trade Agreement (NAFTA), still needs to be ratified by lawmakers of the three countries before going into effect.
The deal faces a tough road ahead in a split U.S. Congress, as Democrats have repeatedly questioned the deal's enforceability, especially related to labor and environment protection.
House Speaker Nancy Pelosi has indicated that the House would not consider the new North American trade pact until after Mexico has passed and implemented its major labor law reforms.
"Unless you do this, we can't even consider it ... We have to see that (Mexico passes) the legislation, that they have the factors in place that will make sure it's implemented and they demonstrate some commitments in sincerity," Pelosi said in an interview with Politico earlier this month.
