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Thursday, January 16, 2025

Lawmakers urge halt on ISDS negotiations amid transition

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Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Congresswoman Carol Miller, alongside Trade Subcommittee Chair Adrian Smith and ten other members of the Ways and Means Committee, has addressed a letter to U.S. Trade Representative Katherine Tai. The lawmakers expressed concerns over reports that the USTR is negotiating new binding interpretations of key provisions within the U.S.-Mexico-Canada Agreement (USMCA) and the U.S.-Colombia Trade Promotion Agreement.

The group urged the USTR to refrain from finalizing any new terms for these agreements during President Biden's remaining days in office. They called for seeking input from Congress and American stakeholders instead.

The letter was signed by Representatives Claudia Tenney, Lloyd Smucker, Aaron Bean, Jodey Arrington, Beth Van Duyne, Ron Estes, Mike Kelly, Rudy Yakym, Max Miller, and David Schweikert.

"We write to express concern regarding recent reports indicating that the Office of the U.S. Trade Representative (USTR) is considering revisions or new binding interpretations of the existing investor-state dispute settlement (ISDS) provisions within the U.S.-Mexico-Canada Agreement (USMCA) and the U.S.-Colombia Trade Promotion Agreement," stated the lawmakers. They emphasized halting "any lame-duck negotiations with foreign governments on this or other trade or investment issues."

The USMCA introduced changes to investor protections initially included in NAFTA but allowed pending NAFTA arbitrations to remain unaffected with a three-year phase-out period for claims under NAFTA rules. The lawmakers cited Vulcan Materials Company's reliance on this phase-out period in a pending arbitration against Mexico as an example of potential impacts on investors if alterations are made without comprehensive stakeholder input.

"It is unacceptable for USTR to attempt to change provisions of both trade agreements through lame-duck revisions or binding interpretations without adequately consulting Congress," they wrote. They stressed that such actions could compromise existing agreements' integrity and undermine future administrations' trade agendas.

As a new presidential administration approaches with the 119th Congress seated, they urged immediate cessation of these negotiations by USTR and requested timely updates on developments.

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