USMCA and Interest groups

The USMCA (United States, Mexico, Canada Agreement) appears to be done. After months worrying that the North American trading block would deteriorate beyond possible repair Congress has finally gotten its adjustments. No one in Congress Democrat or Republican believed we should exit the block. Trump may have believed it at one point but as desperation for a policy win increased the pressure to reach an agreement forced compromise with Canada and Mexico. Despite an agreement between the negotiators, the agreement has not been ratified.

The agreement stalled in Congress. Not necessarily because of simple opposition to President Trump but largely due to the pressure put on members about specific elements. Interest groups advocating specific policy outcomes sought modifications to the agreement. Interest groups seeking protections or subsidies for their industry. In every modern trade agreement, certain protection has existed for certain industries. For years the United States has been very protective of subsidies given to the agricultural sector. Canada has done the same for its dairy industry using a system of pricing that restricts U.S. exports to the country. Every country does this. Free trade is not that free thus making agreements like the USMCA even more detailed. Navigating the complex interest of various domestic actors is a prime example of the connection between foreign and domestic policy.

Finding a middle ground for all parties can be difficult at times. The USMCA has languished in the House for over a year. Interest groups from tech companies to union groups have raised concerns to Representatives about the agreement. Finding compromise is necessary for the era almost free trade. Despite the difficulty, an agreement has been reached and the House has passed the agreement. Why has McConnell decided to let a hard won success languish even more during impeachment? Is part of some greater political strategy or punishment on someone? Pundits and commentators can speculate all they want and never reach an answer. At the end of the day, the USMCA is good for the U.S. and negotiating it involved the complex relationship between economic interest groups and Congress who must answer for their vote.