[background noises] the ways and Means Committee will now come to order. Good morning, today we will consider the historic u. S. Mca transforming agreement that creates a new High Water Mark u. S. Trade deals moving forward. The implementing bill before us is the result of many months of negotiations and indeed more than a year between House Democrats and the ambassador robert who worked with us honorably every time we met. And im very proud of the outcome of that we have reached. When we assume the majority this year, we were asked to consider a renegotiated nafta that had structural flaws in a number of areas including enforcements, labor rights, the environment, and access to medicines. Let me start with enforcement. Which was the crux of this agreement. As ive noted many times over the past year, i did not vote for the original nafta, the chief reason was a lack of enforceability. In the past 25 years, weve seen the shortcoming of the original agreements, much of which comes down to a lack of enforcement, in my view. House democrats working with the trade ambassador, fix this issue. The improvements to the usmca that we negotiated finally make the agreement enforceable. Does this by preventing a country unable to block a dispute settlement panel. On labor, some of our trade agreements over the years have failed American Workers. Nafta has been symbolic of many of the broken promises that were offered to our workers. Over 25 years of nafta, theyre been 39 petitions filed, documenting the exploitation of workers and zero Enforcement Actions to remedy those violations. In Close Partnership with organized labor, and with the robust support of ways and Means Committee democrats, we negotiated improvements to the rules into our monitoring regime and we established new Enforcement Mechanisms. On the rules we have put in certain provisions and obstacles for enforcement or other. We are monitoring for the first time we have created a proactive regime in a trade agreement. The implementing bill establishes an Interagency Labor Committee that will actively monitor mexicos compliance and report to this congress. On enforcement we negotiate a historic mechanism never included in a trade agreement before. It is a result of House Democrats in their efforts, we will now have a facility specific Rapid Response mechanism to address violations of key labeler obligations. Weve also made great improvements to the environmental provisions. Usmca will now include the highest Environmental Standards of any trade agreement in history and will include new customs verification agreements to enhance enforcement. The implement in bill also secures more than 600 million in funding for environmental problems in the nafta region and we reauthorize us north American Development bank. With the dedication of the working Group Members appointed by the speaker, we also secured important changes to the usmca that purpose serves congress ability to change u. S. Law to address the crisis we face with respect to high Prescription Drug prices. These changes set a new standard for u. S. Trade agreements and demonstrate the trade agreements can receive broad bipartisan support if they empower workers, protect Patient Access to healthcare, and improve our shared environment. I am proud to support this agreement, and the implementing bill before us. But before we consider this historic implementing legislation today, we will first take up House Resolution 746 a bipartisan measure that re informs the United States commitment to the wto. I commend our colleague wrong kind for his work on this important bipartisan resolution as well. And let me recognize Ranking Member brady for his remarks. Thank you chairman neil. It goes without question the new usmexico Canada Agreement is sorely needed modernization of nafta. Spent over 25 years since we updated our trading relationship with mexico and canada, a lot has changed since texan and george bush. Who initialed the original agreement in San Antonio Texas paired we didnt have google in 1994, we didnt receive news on her smartphone. Netflix did not exist. Usmca brings us to the 21st centrale be a force multiplier by americas already strong economy. President trump and m nasser light heiser have fought hard and delivered on their promise for progrowth and modern train packs. And because of their leadership we now have a trade deal that would deliver historic wins for our economy. And thats because this is a trade agreement that is all about growth. Usmca will set the stage for billions more, and Economic Activity. It creates for the first time rules for competing in the Digital Economy with the branded digital chapter american innovators will be empowered to sell goods and Services Globally allowing for a more stronger american economy. To open canada markers for u. S. Farmers to sell eggs wheat derry to canada. Our Service Providers will be able to lock and access to mexico and canadian customers. The agreement is enforceable, allowing us to challenge violations and stopping countries from blocking those challenges. Holding mexico and canada accountable for these new rules. For america, this means more jobs. It means more customers and it gives americas animators tools they need to succeed here in america. We can compete with countries like china. Independent experts predict this agreement will spur over 68 billion in new Economic Activity, more than a hundred and 76000 american jobs are set to be created including 76000 new auto sector jobs. And best of all, for the American People, the usmca is truly a bipartisan agreement, not a trade deal fills with purely leftist ideas. Chairman neils credit, House Democrats worked in good faith with ambassador lies heiser on the packed, and i want to thank each chairman neil for your hard work in finding consensus on this agreement. We are glad to see so Many Republican priorities were retained, in the agreement before us today we have labor and environmental rules that are realistic. They are measurable, and they are enforceable. Whats not in this agreement are purposes and for which there is not consensus. The expensive budget lewis multiemployer pension act which more work needs to be done. American workers have a major victory in usmca able suffer the biggest loss if Congress Fails to support this agreement. We are a bit frustrated. Todays market should have taken place months ago. And over the years since President Trump on the north american neighbors signed the agreement and over half a year since mexico ratified the initial agreement and passed the groundbreaking labor reform. it is time for us to move i strongly urge all members of the committee the usmexico can the agreement is a win for the American People a stronger and more beneficial for our trading partners prick out the chairman said today we are doing a resolution i strongly support that to lead with the trade rules this is to modernize the organization increase transparency how it strayed from the mandate with respect to power of the body the us has been raising these issues through multiple administrations other wto members have been unwilling even while assisting they be addressed us appropriately is fully engaged in all aspects of the wto work moving negotiations and transparency i command the representatives to be in a bipartisan resolution to also outline that urgent need that congresses unified here. Thank you chairman. Our first order of business House Resolution 7462 support to reform the wto it reaffirms us commitment to the wto calls on the United States to call another members to pursue reforms and longstanding concerns with the appellate body with the use of special and deferential treatment to increase transparency and remediate the failure to satisfy credible critical notification obligations and create structures to promote peace prosperity open markets thank you for your leadership on this issue now im pleased to recognize for purposes of an opening statement. Thank you for scheduling this important resolution it is as important as it is timely thank you for your partnership as well it is important it reestablishes congresses support for the wto that we help created with the rules based trading system for member nations to come to together to resolve trade disputes peacefully that is important as we move forward to shape the global rules of trade so they can compete and enforce the rules if they choose not to comply. Last tuesday december 10th the appellate body of the wto ceased to function normally comprising Seven Members requiring three to have a quorum of those 32 of the terms just expired we as a nation have been blocking further appointments to that panel as we are working on crucial reforms to modernize it to bring into the 21st century the reforms the Previous Administration was working on including the current one. We had an opportunity to go over those delegations in geneva to meet with our ambassadors to impeach dash but those that have been falling up short to restrain the appellate body to operate within the parameters rather than expansive decisions that were not agreed to by the other participating members increase of transparency also a problem with self identity still hiding behind the status of trade preferences that china has been abusing that status for quite some time this has been a by partisan attack to move forward and we felt it was important for the house in congress to weigh in to give the current ambassador further tools to take the argument why this is important to get done especially in a timely manner. Now it ceases to function has a brave new world it we can only predict what the consequences would be now they see the lower panel to encourage trade wars through those member nations where its every country for themselves or as we hear now there are discussions occurring to create an alternative to the Resolution Panel to the exclusion of the United States we wouldnt even be a participating member of that that could be a very dangerous thing for the rest of the world to turn their backs on us but i think its important for us to provide to establish the rules in regards to the preeminent economic power in the 21st century what has it been considered ultimately germany will make this decision to spend one depending on which way they decide to go if they move toward china they will take the ewith them it will be the eu and china establishing the rules to our exclusion to help manage this relationship with other members of the wto in crucial allies we want to keep because they do share many of the same Democratic Values we have been promoting this is whats at stake it is important we move forward to affirm our support a crucial function also recognition of the reforms that we in Previous Administrations have been working on for some time i also want to thank representatives who went with me to the wto this fall and their involvement to draft this legislation i think we have struck a sweet spot with bipartisan support with conversations of the senate to see if they can do something comparable or similar strong passage sends a strong message to geneva right now that we are serious about helping that organization but also modernizing and implementing the reforms we feel are necessary to make sure it is functioning the way we intended i encourage support and i yield back. I like to recognize the good work for his purpose of an opening statement. Thank you on occasion we get these moments for something starts to move so for those of you who had to listen to my tirades on the wto i apologize from a very practical standpoint lets be honest if we have a rules based trade 98 percent of the world trade moves between wto countries but those dispute mechanisms are calcified if you want to be bored out of your mind read the opinions of the adjudicators they read like philosopher kings. That was meant to be funny. [laughter] but theres just a handful of things the fact we are living in a world where many disputes are technologybased but by the time the adjudication is done the very dispute the technology has moved on how do we change the timeline move the adjudicators to transform the actual question instead of philosophize the questions that were not asked or if representatives of other governments come visit us if we help them also this is important to you japan, eu , help us all because this will have to be done as a cooperative effort to reform the adjudication process and the timeline of scope and if one decisionmaking we are going the right direction but have a feeling we have a couple of years to be dogged on this but we have to push it. I yield back. [laughter] spirit the committee will now proceed to House Resolution 746 support to reform the wto it will be open for amendment at any point if i offer the nature of a substitute it was distributed in advance to explain it without objection the amendment shall be considered as read it any point for purpose of amendment now the staff director will summarize the components of the resolution please hold questions until after the presentation. The amendment makes three changes to the house resolutio resolution, first it strikes the preamble, second it removes the cereal, from the last line in the wear as clause and it removes the cereal, in Section Three eof the resolve section. House resolution 746 to the house of representatives United States should affirm its commitment as a member of the wto and have other wto members to achieve reform that improves the speed and predictability to address longstanding concern concerns, increase transparency at the wto ensure wto members have differential treatment reserved for developing countries under appropriate circumstances to address the needs of the United States and other Free Movement economies in the 21st century that concludes my presentation. Are there any questions of the nature of the substitute . Does anybody wish to strike the last word . The gentleman from virginia. I would like to strike the last word and to introduce this resolution from our trip to geneva we did add deep dive with differential treatment by understand republican and democratic administrations it was a terrible decision to essentially kill it in the short run the longstanding desires detail this resolution despite this the wto settlement has been a positive for the United States and the World Economy already we see other nations in the appellate body created without us we saw the tpp but the other 11 nations went ahead without us are other concerns is to lead an honest effort and good faith not pick up our toys and go home a strong bipartisan its important for support for the wto for which these disputes are central we went to make sure this is not a deathknell or a permanent condition in the us would renew its strong leadership and restore functionality and to be in partnership with allies Us Economy Health and welfare 7 billion people depend on trade and fair rules of enforcement thank you to the leaders for their leadership. The gentle man from kansas is recognized. I moved to strike the last word. As the bread basket of america ive been a long time strong advocate for free and fair trade to pull millions of people out of poverty all over the world for over two decades the wto has been an integral part of that achievement now its in desperate need of reform for to play a critical part to reinforce the trade policies around the world fortunately over the last decade member countries have refused to make necessary and overdue reforms to strengthen the wto including transparency the notification process regarding changes of member countries and the effectiveness and efficiency of the appellate body they are needed to make sure the wto can strengthen trade to the 21st century i traveled to geneva with a bipartisan delegation to discuss these reform ideas today im proud to support House Resolution 746 that these reforms are necessary to strengthen the leading role in the organization thank you to representative kind. The gentleman from oregon. I too deeply appreciate my friend to move this forward and his willingness to lead the delegation to make sure the world knows we are interested to be engaged. Its time to reestablish American Leadership at a critical juncture we are sending too many signals and with leadership to the chinese the world needs American Leadership and economic factors many send signals they want this leadership we can profoundly shape the outcome for the wto we need our leadership to make sure our interests sends a signal we are committed to both reform and leadership and i appreciate the congressmans willingness to assume a leadership role in the trade subcommittee to guide us moving into the new year and the followup work to make sure we will have engagement on both sides of the aisle to reassert that leadership may i yield to mister kind quex. I will you may. Thank you for th