The United States-Mexico-Canada Agreement has been in force for more than a year, but our North American trading partners have refused to fully implement the agreement.
Canada failed to open its dairy market to American farmers and producers as promised. Among other violations, Mexico continues to place state-owned energy companies above U.S. energy companies.
Unfortunately, Canada and Mexico are not the only U.S. trading partners evading their promises. Britain, Japan, Brazil, and Indonesia also pose a threat to American workers and companies by setting up trade barriers.
Fortunately, U.S. Trade Ambassador Catherine Day, who was unanimously confirmed by the Senate earlier this year, promised that under her leadership, the United States will “spread the values and rules that guide global trade… [and] Enforce these terms vigorously. “
This kind of support that holds our trading partners accountable is very encouraging. Enforcing existing trade agreements is one of the best ways to help American companies expand into new markets and create more domestic jobs.
International trade remains the backbone of the US economy. In 2019, U.S. companies imported and exported goods and services worth 5.6 trillion U.S. dollars. Forty million jobs depend on these transactions. Nearly 300,000 SMEs exchange goods and services internationally, accounting for 98% of US exporters.
Unfortunately, when the federal government does not properly enforce trade rules abroad, these companies and their workers will be exploited-and this is what is happening right now.
Taking into account that the domestic policies of the United Kingdom and Japan underestimate the value of medicines manufactured in the United States, they have set up barriers to the export of biological medicines from the United States.
At the same time, the local content laws of Brazil and Indonesia restrict the broadcasting of Hollywood movies. Counterfeiting in Mexico also poses a challenge to American manufacturing companies and producers from various intellectual property-intensive industries. Frequent copyright infringements in Canada devalue the works of American artists, writers, and musicians beyond our northern border.
It is not only individual governments that prevent free and fair trade. The World Trade Organization is currently considering a proposal made by India and South Africa that would invalidate the protection of intellectual property rights for Covid-19 technology.
Several WTO members, including the European Union, oppose the proposal, which will put research and development projects into trouble in the next few years. Therefore, after Ambassador Dai promised to “spread the values and rules that guide global business” a few months ago, it was especially surprising when the Biden administration came out to support the proposal earlier this summer. The United States still has time to deny this position-it is in the best interests of American researchers and developers to do so.
Strict enforcement of existing agreements will also make it easier for Ambassador Dai to negotiate stronger treaties in the future, such as those with Japan and the United Kingdom.
Before the 2020 elections put the US-UK trade negotiations on the agenda, the negotiators have yet to finalize the much-needed chapters on intellectual property and drug regulation. When Ambassador Dai resumes negotiations in the coming months, she should first flesh out these parts of the agreement. Incorporating strong intellectual property protection, especially the intellectual property protection of biopharmaceutical products into these chapters, will produce a truly modern free trade agreement that should be a model for future negotiations in the 21st century.
The previous office of the United States Trade Representative was also unable to ensure the protection of U.S. medicines in the first phase of the U.S.-Japan trade agreement finalized in the fall of 2019. And he did not address the country’s onerous vehicle testing standards, which make cars our biggest source. The trade deficit with Japan. Ambassador Dai can correct these two mistakes.
Why stricter law enforcement is welcomed by both sides is not a mystery. Almost everyone—from high-level politicians to ordinary workers—recognizes that law enforcement benefits American companies. More than eight in ten voters believe that cracking down on trade violations will help American innovators.
They are right. Ambassador Dai now has the opportunity to develop the U.S. economy by holding our trading partners accountable. Here I hope she can succeed.
Frank Samolis is a lawyer and a partner and co-chairman of Squire Patton Boggs International Trade Practice.
