Democrats: Closing U.S.-Mexico border would harm USMCA's chances

By Maria Curi

Congressional Democrats believe President Trump's threat to shut down the U.S.-Mexico border would hurt his administration's push to get the U.S.-Mexico-Canada Agreement ratified, lawmakers told Inside U.S. Trade this week.

Trump on Tuesday once again threatened to shut down the U.S.-Mexico border over security concerns. When asked about the economic impacts of closing the border, Trump told reporters at the White House that "Security is more important to me than trade. So we're going to have a slower border or a closed border."

But Democrats this week said closing the U.S.-Mexico border would negatively impact ongoing USMCA talks in Congress. The deal already is facing significant roadblocks, with House Speaker Nancy Pelosi (D-CA) and other Democrats insisting that talks be re-opened to address enforcement concerns. U.S. Trade Representative Robert Lighthizer has said the deal cannot be re-opened.

"It would send everything into a tizzy," Rep. Earl Blumenauer (D-OR), who chairs the House Ways & Means trade subcommittee, said of a border closing -- adding that it would "take all the oxygen out of the room and create all sorts of problems."

Rep. Bill Pascrell (D-NJ), a member of the Ways & Means trade subcommittee and its former ranking member, said Trump's threat to shut down the border must be taken seriously. Closing the border "does not help in any way shape or form" in getting USMCA passed, he added.

"If that's a quick, roundabout way" for the administration "to get to the goal line, I'd tell you to stop now. Don't waste your time. That's going to make matters worse," Pascrell said.

Trump "is capable of anything at any time," said House Ways & Means member Rep. Ron Kind (D-WI). "We view it as very bad faith and won't be bullied into that corner."

But White House Press Secretary Sarah Sanders told reporters on Tuesday that "Democrats are leaving us absolutely no choice at this point."

"It may be that it's the best decision that we close the border," Sanders said. Asked what the economic impact would be, she said "it's not our first choice" to close the border, but added that Trump's "number-one priority is to protect life."

As far as timing, Sanders said Trump "is not working on a specific timeline" and is hopeful Mexico will do more to process asylum seekers.

Rep. Veronica Escobar (D-NY), after meeting with U.S. Trade Representative Robert Lighthizer on Tuesday, said she had "no doubt" Trump would go through with his threat.

"I don't understand why folks around him aren't telling him that this has the potential to torpedo" an agreement on USMCA, Esccobar said. "We have a very erratic president who doesn't create a plan, a process, doesn't care about consequences. He's very capricious and arbitrary and he uses government to hurt people."

The Washington Post reported this week that senior White House officials were working on ways to minimize the economic impact of a border closing should the president follow through on his threats.

"For the president to be acting on a whim because of his reaction to an immigration issue bodes very badly for the trade relationship, especially given that the two countries are trying to approve a trade deal," Rep. Jesús García (D-IL) told Inside U.S. Trade on Wednesday. "If you're seeking to formalize a tentative trade deal, this certainly shows bad faith on the part of one of the three partners. It's acting irresponsibly, almost childlike."

García also attended the Tuesday meeting with Lighthizer.

GOP balances trade and security concerns

Republican lawmakers grappled with what they said are legitimate security concerns at the southern border and the economic impact of shutting it down.

Senate Finance Chairman Chuck Grassley (R-IA) said on Tuesday that he did not think closing the Mexican border would impact USMCA. "At least I've never heard anyone put the two together," Grassley told reporters. "I think immigration is separate from trade."

Grassley said he hoped Trump "takes into consideration the harm that it might do to the economy, particularly agricultural exports," but added that "on the other hand, I would have to say that the president's number-one responsibility is to protect the American people."

Claiming that 5 million jobs "depend on trade with Mexico," Sen. John Cornyn (R-TX) said he thought shutting down the border "would have a lot of unintended consequences." Cornyn is the chairman of the Senate Finance committee trade subcommittee.

In 2018, U.S. exports to Mexico totaled approximately $265 billion, according to the U.S. International Trade Commission. That same year, the U.S. imported about $347.1 billion worth of Mexican goods.

"I think there are other ways for the president to get leverage with the Central American countries and Mexico to be more responsible on the inflow of people from Central America but I don't think shutting down the border would be productive," Cornyn said on Tuesday.

He added that the impact on USMCA talks was "another concern."

"Ms. Pelosi is pretty much the one in charge of whether it's going to pass the House," he said. "But right now their mindset is anything that helps Trump, they consider a loss, lost face for them. So, we're not at a good place right now. But hopefully we'll get there."

Ways & Means ranking member Rep. Kevin Brady (R-TX) said that while he "thinks our focus needs to be passing this Mexico-Canada Agreement," there is "a humanitarian crisis at the border." Instead of shutting down the border, though, "the first order of business is for Congress to work with" Trump to "get him the resources to address" security concerns, Brady said. Closing the Mexican border "is a last resort" and "has significant economic impact," he added.

Ways & Means trade subcommittee ranking member Rep. Vern Buchanan (R-FL) said he hopes border security issues don't impact USMCA's chance, but added that "the border is a real issue."

"My focus is trying to get a bipartisan bill to get it [USMCA] done," Buchanan said. "There's a lot of activity along that 2,200-mile border, but I think it is a national security issue."

Impact on U.S.-Mexican relations

Blumenauer also cautioned that shutting down the border could harm the United States' reputation in Mexico and other countries. The move would "make people wonder if they had a stable partner that they're trying to negotiate with and make a deal," Blumenauer said.

Mexican President Andrés Manuel López Obrador, during his weekly press briefing on Tuesday, said he had told U.S. lawmakers in Mexico City the day before that "despite the differences" he considers Mexico's relationship with the U.S. a good one. House members who visited Mexico to discuss trade, among other issues, with AMLO and Mexico Foreign Affairs Secretary Marcelo Ebrard asked the Mexican president "to take a position," López Obrador said.

"I spoke with clarity that we have maintained a good relationship with President Donald Trump," he said. "We're not going to fall for any provocation."

Rep. Zoe Lofgren (D-CA), who attended the meeting, said the Mexican president "spoke positively about the trade agreement."

Rep. Adriano Espaillat (D-NY), another one of the House members who met with López Obrador, said the Mexican president told the U.S. delegation "he inherited the deal and would not oppose it" but that he was adamant about "not answering" to Trump. -- Maria Curi (mcuri@iwpnews.com)