Page 31 - 2019 Washington DC Trip Packet

ran a cumulative trade surplus with its trade agreement partner countries of more than
$271 billion over the past eight years (2009-2015), according to data from the U.S.
Department of Commerce. Overall, the United States had a modest trade surplus with
its 20 trade agreement partners as a group throughout the 2012-2015 period (2016
services trade data pending).

Together, these facts reveal that the U.S. trade deficit arises from trade in manufactured
goods with countries where the United States has no trade agreement in place. It’s
wrong to say trade agreements are contributing to the deficit.”

NAFTA and the USMCA: Canada and Mexico represent two of the U.S.’s largest
trading partners, and the North American Free Trade Agreement (NAFTA) has been
instrumental in helping companies of all sizes export their goods and services. Trade
with Canada and Mexico supports 14 million American jobs and generates $1.3 trillion
annually in goods and services traded across our borders.

The US Chamber of Commerce is leading efforts to get the United States Mexico-
Canada Agreement (USMCA, e.g. the “New NAFTA”) to the president’s desk this year.
Passage of USMCA is a top priority of the White House, but getting the agreement
through the House of Representatives will be a challenge.

Congressional Situation: Congressman Sean Duffy (R, WI 7 District) has introduced
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the Reciprocal Trade Act, a White House-backed bill crafted to give the president more
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authority to raise tariffs. Meanwhile, Congressmen Mike Gallagher (R, WI 8 District)
and Ron Kind (D, WI 3 District) have introduced H.R. 940, the Congressional Trade
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Authority Act, a bipartisan bill to provide Congress with new tools to oversee and
either approve or reject the use of tariffs or other trade restrictions for national security
purposes.

Forward Janesville supports the Congressional Trade Authority Act. Under the bill,
national security trade restrictions proposed by the president would require
congressional approval under an expedited, 60-day procedure. National security tariffs
imposed within the past four years would also be subject to congressional review.
Other reforms in the bill would include tightening the definition of “national security” to
prevent the abuse of congressionally delegated powers to restrict trade for security
reasons.

We believe that this bill is needed to restore an appropriate balance between Congress
and the president in the exercise of trade and tariff powers.

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