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Can USMCA help with China negotiations?

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We have said it before. The trade situation is like a stack of dominoes. All it could take is one to get the rest falling. We saw a trade deal reached, in principle, with Japan. Now, the United States – Mexico – Canada Agreement (USMCA) has a chance of being ratified by Congress this fall. Some lawmakers believe this could help us end our trade war with China.

Getting trade deals done with other countries could give us some leverage in our talks with China. The USMCA is probably the most high-profile of these other trade deals. It was agreed to by all three nations almost a year ago and was ratified by the Mexican legislature. The Canadians have all but promised to ratify if the American Congress does. The deal has long been stalled over House Democrat concerns about environmental, enforcement, and labor issues. There have been talks between a committee appointed by House Speaker Nancy Pelosi and US Trade Negotiator Robert Lighthizer.

During the August Congressional recess, it seemed the focus from both sides of the aisle was to get the deal done by year’s end. Trying to pass the deal during a 2020 Presidential campaign would be impossible. Now, as Congress is back to work, Iowa senior Senator Chuck Grassley says it is time to get the deal through the legislature.

House Minority Leader Kevin McCarthy spoke earlier this week on CNBC, saying that a deal would give the United States more leverage to negotiate with China.

Senator Grassley echoed these statements during his weekly Ag press conference. Grassley says showing the Congress and the Oval Office are on the same page, will give them a united front when negotiating with China.

Trade talks between the U.S. and China are expected to resume in mid-October.

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