[Congressional Record Volume 165, Number 145 (Wednesday, September 11, 2019)]
[Senate]
[Page S5420]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                 United States-Mexico-Canada Agreement

  Mr. President, on another matter, for a quarter of a century, the 
North American Free Trade Agreement has guided our trade relationship 
with Mexico and Canada. When NAFTA was created, it sought to remove the 
barriers that impeded free and fair trade to provide benefits to all 
three countries. While this agreement has certainly had its share of 
critics and champions, I think there is no doubt--certainly, in my 
mind--that NAFTA has been a benefit to the United States.
  Last year, U.S. goods and services trade with Mexico and Canada 
totaled nearly $1.4 trillion. Across every industry, from major 
companies to small businesses, an estimated 12 million American jobs 
rely on trade with our NAFTA partners--12 million.
  The importance of maintaining strong trade ties is certainly 
understood in my home State of Texas, and that is in large part 
because--and this will not surprise you--last year, Texas exported 
nearly $110 billion in goods to Mexico, our next-door neighbor, 35 
percent of our State's total exports.
  We also imported more than $107 billion in goods from Mexico, 
including everything from motor vehicle parts to computer equipment, to 
tractors and avocados. It is not uncommon to see certain products, like 
automobile parts, crossing the border multiple times during the 
manufacturing process before eventually making their way to the 
customer.
  NAFTA has fueled the economies of every State across the country, but 
a lot has changed since NAFTA was ratified in 1993. At that time, the 
internet was in its infancy, smartphones didn't exist, and shopping at 
brick-and-mortar stores was the norm. Countless economic advancements 
and our digitalized marketplace have fundamentally changed the global 
trade landscape. So it is clearly time to modernize NAFTA and bring it 
up to current needs.
  I was glad when the heads of all three countries signed the U.S.-
Mexico-Canada Agreement last November and took major steps just to get 
that far, but the new NAFTA--or, as we call it, the USMCA--takes into 
account businesses and practices that didn't even exist when NAFTA 
existed, things like 2-day shipping, online micro-retailers, and 
digital products like e-books and music.
  The USMCA will require Mexico and Canada to raise their de minimis 
shipment value levels, which will allow certain classes of shipments to 
enter all three countries with expedited entry procedures. That is a 
big win for small and medium-sized businesses, which often lack the 
resources to pay customs duties and taxes.
  Overall, the USMCA takes steps to advance the digital economy, which 
accounted for nearly 7 percent of our total economy in 2017.
  A few months ago, the International Trade Commission publicly 
released its analysis of the economic impact of the USMCA, which shows 
some positive indicators. The ITC concluded that, within 6 years, the 
USMCA will raise real GDP in the United States by $68.2 billion and 
lead to the creation of 176,000 new jobs.
  We can also expect a more than $33 billion increase in exports and 
more than $31 billion in imports. That is great news for North American 
workers, farmers, ranchers, and businesses that will reap the benefits 
of this agreement.
  When I was traveling around the State during August, one of the most 
frequent questions I encountered from my constituents was this: When is 
Congress going to pass the USMCA? I assured them that I am just as 
eager as they are to see Congress ratify this agreement, but we are 
still waiting on the House and the administration to iron out their 
differences.
  I know that the U.S. Trade Representative, Ambassador Lighthizer, and 
Secretary Mnuchin are having constructive conversations with the 
Speaker of the House, and she has set up a process by which the House 
can provide its necessary input into the final product, but we are all 
waiting to see the Speaker turn on the green light to allow them to 
start the process--sooner, hopefully, rather than later. We know that, 
historically speaking, the closer we get to an election, the more 
challenging it is to get things passed, particularly in a divided 
Congress, like we have now. So I hope we can get this process moving 
soon.
  Businesses, jobs, and communities in Texas rely on a strong trade 
relationship between the U.S., Mexico, and Canada. While NAFTA has 
benefited all three countries, it is not able to propel our economies 
into the future. That is why the USMCA is so important.
  The USMCA increases goods' market access. It supports small 
businesses. As I said, it supports digital trade, safeguards 
intellectual property, supports our agriculture sector, and keeps jobs 
right here at home.
  Free and fair trade isn't just good news for our economy. It is good 
news for the people behind it. This is a trade agreement built for the 
21st century, and it is time for Congress to pass the USMCA and provide 
greater stability and more opportunities for North American workers.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Maryland.