Good morning and welcome. Consistent with the guidelines released last night by the ho e attending physician and the speaker all present today in the hearing room are required to wear face coverings. Brief removal of the masks for the purposes of speaking on the record is permitted. I want to thank everyone for their adherence to these guidelines as we continue to do our work protecting the health and safety of our staff families and communities. So thank you for joining us today. Pursuant to todays instance n our hearing is taking place in the ways and Means Committee room with members able to attend remotely with compliance with proceedings pursuant to House Resolution 965. We currently have 33 members logged in and participating via the platform. For those members here in washington and plan to participate in person we have a limited number of available seats at the dias to ensure we adhereby to social distancing guidelines. I encourage members to watch from their office and only come to the hearing room when it is your turn for questioning. Before we turn to todays topic i want to remind members of a few procedures as we navigate this hybrid hearing setting. First, consistent with are regulations the committee will keep microphones of those webex muted to limit background noise. Members of the hearing room or via webex are responsible for unmuting themselves when they seek recognition or when recognized for their five minutes. For members physically present please remember to keep your microphone muted when you are not speaking. This will help avoid camera on rather than logging out. I thank all of you for your patience as we continue to navigate this new technology and challenge in order to continue serving our country in this great time of need. With that i want to recognize and welcome the United States trade ambassador Robert Lighthizer to discuss important trade issues that impact the health and Economic Opportunity of all americans during these challeng challenging times. Last year democrats worked tirelessly with the ambassador to improve the usmca and create a successful model for good trade policy that strengthens our economy and meaningfully benefits our workers. A reminder that more than 190 democrats i believe voted for that agreement. We are very proud of the new high watermark we established in usmca closing the loopholes in the old nafta state to state enforcement meckmism. The new usmca has a system now that will allow all obligations in the usmca on agriculture, on ecommerce, customs rules and yes, on labor and environment to be enforced. We, our democratic colleagues and i are looking forward, acknowledging you intend to offer rigorous enforcement. I was pleased to read your recent writings in which you promoted the core labor standards and labor mechanism we fought so hard to include. We are eager to see evidence you and the Current Administration will implement and enforce those and similar provisions to the fullest extent. As we approach usmcas entry into force we face historic challenges some expected, others unanticipated. The covid19 thrust to the forefront flaws in our Economic Health systems that disproportionately affect the most vulnerable communities and workers inside the United States and across north america. How the United States addresses these issues will impact the lives of millions of people. The usmca provides important opportunities to reduce the pandemics negative effects but only with effective and strategic enforcement and implementation. Similarly, we also face the historic challenge of reversing the continued deterioration of basic labor rights for workers south of our border and therefore our own workers. In the usmca we achieved the most robust Law Enforcement mechanism seen in any u. S. Trade agreement ever to do date. I hope you agree that the success of the whole agreement depends heavily on this badly needed tool to help raise labor standards and prevent systemic and egregious violations of workers and their human rights. We are aware that serious deficiencies exist and they threaten to preemptively undermine the successful model we have worked so hard to build. Specifically the failure of the current collective Bargaining Agreement legitimation process to deter undo influence and interference by employer protection unions jeopardizes mexicos ability to raise labor standards. This only serves to further chill the rights of workers in mexico and undermine the rights of American Workers. Theyre the foundation of bidding Effective LaborRights Enforcement and they require our urge want attention. Similarly we need to hold our own Companies Accountable as well. Reports emerge daily of American Companies pressuring their factories in mexico to keep operating to reopen without taking into account health and safety protections for their workers. Some of these companyerize the same ones that shuttered their operations and laid off workers in communities here in the United States. We engaged over the last year in good faith, relying on the facts and evidence to negotiate usmca. Mr. Ambassador, we know that you are a hard liner on these issues and will apply the same vigor ensure the enforcement of this trade deal as we did with negotiating it. With respect to the larger trade agenda the administration we know has been very active over this year. The administration started section 301 enforcement investigation news Digital Service taxes by our european allies and friends and others there is broad support on this committee on that initiative. The administration negotiated preliminary agreements with china and japan that both await more comprehensive and meaningful followup. The administration is negotiating or preparing to negotiate trade agreements with the u. K. And kenya. Maybe the onagain, offagain discussions with the eu will come back to life. At the moment it looks doubtful. The administration is also reportedly engaging in limited negotiations with brazil and may consider limited trade negotiations with brazil and other trading partners. You should know many of our colleagues were unhappy with the administrations lack of coordination and consultation with limited agreements as they relate to japan last year. With respect to the larger trade agreement the administration has been very active over the past year. The administration as we know is very challenged on a series of fronts as it relates to our relationship with china. Yet it is not raised labor issues including the forced labor agreements with weugers in concentration camps or with china pending petitions underour fda it was alleging violations in columbia, peru, the honduras or the dominican republic. The administration often leverages trade policies and trade tools in the name of American Workers yet we see no actual enforcement of the cases, and several labor rights cases continue to languish without results. At the same time we see tax policies, education policies, worker and Family Support policies and border policies that undercut the interests of americas workers and make life difficult for middle class families. O our work in usmca was an important first step but we know much work remain tuesday be done. With that let me recognize the Ranking Member mr. Brady for the purposes of an opening statement. Thank you, chairman neal, and ambassador lighthizer for joining us today in person. Its good to be finally back in this historic room where we write laws that shape our countries economy and that of an entire world. One important key of a strong u. S. Economy is a trade agenda. Its smart and fair and open and enforceable. Its even more important in the midst of an Economic Hardship caused by the pandemic. Mr. Ambassador, you played the central role in advancing President Trumps aggressive trade agenda. The administrations aggressive trade policy agenda has opened more export markets for American Goods and services and create a far more level Playing Field for American Workers, farmers, ranchers and businesses, which is vital for our economic recovery. Especially in the face of covid19 implementation and enforcement will bring good jobs back to america and increase paychecks for our workers. Once this agreement is enforced in just two short weeks enforcement will be essential. The agreement strong Enforcement Mechanisms absent from nafta will now ensure canada and mexico abide by their commitments so we reap the benefits we fwabargained for. The president s phase one agreement will trade significant opportunity for growth and prosperity and enhance fairness and more importantly accountability. Can and know you wont hesitate to use powerful Enforcement Mechanisms if china fails to live up to its obligations. Republicans agree with President Trump we will insist americans receive our expected benefits and that china does not backtrack. In addition to usmca chinas administration achieved a phase one agreement with japan that gives our farmers and ranchers new access to an important market, that australia, the eu and canada tried to seize from us. These three agreements has created Significant Energy and momentum for future trade negotiations. Negotiations with the u. K. Progress and as we start negotiations with kenya as well as a phase two negotiations with japan and china. Another issue we should discuss today is the world trade organization. I reiterate both my strong support for the w. T. O. As well as my frequent calls for real reform. While the w. T. O. Is not perfect it serves the interests of American Farmers, workers and business by tearing down barriers abroad, establishing rules based on our system, enforcing countries to comply through rigorous dispute settlements. The reforms are long overdue. This institution has gone astray. I thank you for your strong leadership and assisting on real reform and not papering over the w. T. O. s wayward direction. We have to push our trading partners to address chinas consistent practice of subverting the rules. You have to establish new and more modern rules to tackle distortions, Technology Theft and subsidies. We cant allow countries like china to dodge their obligations and be transparent and claim their entitled to special treatment. Mr. Chairman, lets move to the floor our bipartisan resolution we passed by voice vote in december showed the world is United States is unified in rallying for a stronger w. T. O. That serves our interests. Must also be unified in denouncing actions by so many economies that seize revenues from our companies and our country through discriminatory service taxes. Thank you, ambassador, for holding firm as others try to flagrantly seize revenue they did not own. Reduce costs here at home, strengthen our relationships with developing countries and establishing centers for those countries to work with us. Upper manufacturers, and one last issue as the chairman has said covid19 has rocked our economy highlighting the necessity of durable supply chains, speed our economic recovery, make us more competitive and secure and low and encourage our companies to increase capacity, develop and manufacture critical products, medicines, supplies here at home while working with our allies. And ensure a diverse, dependable supply chain. Then meantime lets suspend duties for American Products if theres no domestic opposition. Americans need to return to work. Probreath trade policy agenda will create new opportunities, strengthen our economy, make us resilient and allow us to compete and win. Todays hearing is an opportunity to determine how we will build together on the progress that you have made over the last three years and best positioned america for a strong future. Thank you, mr. Ambassador, and i yield back mr. Neal. Chairman neal. Thank you, mr. Brady. Without objection all members Opening Statements will be made part of the record. Ambassador lighthizer, welcome back to the ways and Means Committee. I would ask you summarize your testimony in five minutes or so. To help you with that time please keep an eye on the clock. If you do go over your time i will notify you with a light tap of the gavel. Ambassador lighthizer. Thank you, mr. Chairman, Ranking Member brady. I know youve never heard a United States trade representative say that in history but its true. Weve had calls. But i look forward to the time we actually get back to traditional legislation in the historic way weve done and for all these many years. Weve been going through two crises. These are indeed challenging times. I thought of many of you often during these crises. Im confident if we Work Together in good faith as we have in the past we will get through these problems, heal and move forward. Hopefully things will be better than they were before. In some ways these problems make talk of International Trade seem less important, but in other ways perhaps rebuilding our economy, helping to create good paying jobs for all americans, securing fairness for our businesses and bringing back manufacturing can be part of the solution to bring us all together as one great country again. I have been we have been isolated and quarantined so long that i fear we might forget the great achievement of the last few months. Together republicans and democrats, house and senate worked closely with the administration to write, pass and pass the biggest and i would say the best trade agreement in american history, usmca. Mr. Chairman and Ranking Member made reference to it. We should not forget how important that was for our country and for our workers and businesses and ranchers and farmers. I would like to, again, thank all of you for working with me on that. Together we have had a historic accomplishment. I would also like to thank you for your support and help as we worked our way through china phase one agreement. Congress had an Important Role in that, the very important u. S. And japan agreement and numerous agreements in the last year. Toorlgt i think weve helped our workers, farmers, ranchers and businesses. Going forward theres much to achieve. As we all know we have active negotiations ongoing with the United Kingdom. We will very soon commence negotiations with kenya. Finally, we have active engagements on trade with numerous other countries, and of course, i look forward to working with members on the crucial issue of the w. T. O. Thank you to all members for working so closely with me, for making time to talk with me and meet with me. For having your staffs works so closely with ustr and for making our end product consistently better than it would have been without our involvement. I look forward to hearing your questions. Thank you. Thank you, mr. Ambassador. Without objection each member will be recognized for five minutes having an opportunity to question ambassador lighthizer. We will not observe the gibbons rule and will instead go through the order of seniority. Members are reminded to unmute yourselves when you are recognized for your five minutes. If you have technical difficulties when your turn comes up i will come back to you when you are ready. Let me begin by recognizing myself. Mr. Ambassador, as i noted in my opening comments we have received reports from mexico that there are serious challenges with the process for legitimating existive collective Bargaining Agreements, many of which as you know in the past have been sham protection contracts that were never really voted on by workers. We always knew that mexicos imp limitation of its Domestic Labor reforms and usmca labor regulations would be a challenge. With covid19 things are likely to be even more complicated than we have expected. You have repeatedly ensured us you are committed to the success of this agreement as we are. Making sure it delivers on its promises to u. S. Workers and to mexico workers. What options do we have and you are currently entertaining to provide reinforcement and course correction in mexico . Well, thank you, mr. Chairman. So i would say, first of all, we have taken all the steps necessary to get usmca enforced, and there are a enormous number of steps. Weve setup the committees, for the most part hired the people, and weve done the necessary certifications. Im happy to walk through all of these if you like, and the new Rapid Response mechanism is up and ready to go. I would say the same thing is trueoon the environment side. So the ustr has taken the hundreds of steps necessary to swing into action. I realize that and weve all realized all of us, and thats why we spend so much time on it that labor enforcement in mexico is going to be a problem. Its a crucial part of this agreement. Its something that all of us have realized from the beginning and i know you mentioned this also, made that a key part of his support. The agreement hasnt gone into effect yet, so it goes into effect july 1. But i can assure the committee when it does go into effect we will take action early and often when there are problems. Until now weve built in a very good system, a Rapid Response system plus a state to state dispute settlement system. We have committees, ways for congressional involvement, and the administration will follow thr