as adopted by senate, October 16, 2019


substitute for

senate Resolution No. 73

A resolution to urge the Congress of the United States to speedily approve the recently negotiated United States-Mexico-Canada Agreement.

Whereas, The North American Free Trade Agreement (NAFTA) is a close tri-lateral relationship between the United States, Canada, and Mexico. For more than 25 years, NAFTA has been economically, culturally, and strategically important for all parties; and

Whereas, NAFTA is significant for the American economy. Trade with Canada and Mexico supports nearly 12 million American jobs, and nearly 5 million of those jobs are supported by increased NAFTA trade. Since the agreement began in 1994, trade with Canada and Mexico has nearly quadrupled to $1.3 trillion, and the two countries buy more than one-third of U.S. merchandise exports. U.S. service exports to Canada and Mexico have also tripled, rising from $27.5 billion in 1993 to $91.3 billion in 2017, thanks to the trade agreement's new market access and clearer rules; and

Whereas, Trade with Canada and Mexico is significant to U.S. states. For 43 states, our contiguous international neighbors represent the first or second largest export market, and all but one state counts Canada or Mexico as a top three trading partner. Canada is Michiganís largest export market, and Mexico is Michiganís third largest export market. NAFTA has also contributed to a 300 percent increase in Michiganís agricultural exports to Canada and Mexico; and

Whereas, Small and medium-sized enterprises in the United States rely on trade with Canada and Mexico to support and grow their business. Canada and Mexico are the top two export destinations for U.S. small and medium-sized enterprises, more than 125,000 of which sold their goods and services in Canada and Mexico in 2014; and

Whereas, Trade among our North American trading partners is made up predominantly of intellectual property (IP)-intensive goods and services that employ millions of Americans in high paying jobs and generate billions of dollars in economic output. However, many of the IP-intensive goods, services, and exchanges through which trade is facilitated did not exist when the agreement was drafted. This situation has resulted in uneven and weak IP enforcement. Stronger enforcement of IP rights will encourage more foreign direct investment and increase gross domestic product; and

Whereas, The United States-Mexico-Canada Agreement (USMCA) creates a 21st Century trade agreement for North America. The renegotiated USMCA has provisions favorable to U.S. autoworkers that would help level the playing field between U.S. and Mexican autoworkers. The updated agreement is also more beneficial to the agricultural sector than NAFTA and will offer a higher degree of certainty and stability to Michigan farmers. The new IP provisions are the most comprehensive of any multilateral U.S. trade agreement and are vastly superior to those included in NAFTA; and

Whereas, The USMCA is a win for all three countries. Ratification will modernize North American trade, reduce uncertainty by setting the rules for every player, encourage investment and innovation, and support millions of well-paying manufacturing jobs. The USMCA will also encourage automotive research and development investments in the United States and ensure that the U.S. automotive industry, which is fundamental to the Michigan economy, remains a leader in the global economy; and

Whereas, A seamless transition between NAFTA and the USMCA will ensure that none of the benefits in trade accomplished by the integration of the three North American economies will be lost; now, therefore, be it

Resolved by the Senate, That we urge the Congress of the United States to speedily approve the recently negotiated United States-Mexico-Canada Agreement; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.