Issue link: https://iconnect007.uberflip.com/i/1172746
54 SMT007 MAGAZINE I OCTOBER 2019 U.S.-Mexico-Canada Agreement Coming to a Head In North America, the governments of the United States, Mexico, and Canada are labor- ing to secure a new U.S.-Mexico-Canada Agreement (USMCA) to replace the '90s-vin- tage NAFTA. IPC supports USMCA because it would reduce the risks of doing business in North America, creating a better environment for investment in people and facilities, and serving as a timely antidote to global uncer- tainty. Read the IPC study on the issue [1] . Mexico's government has approved the deal. Canada's government says it will move in tan- dem with the United States, but the outcome now depends on a federal election there on October 21. In the U.S. Congress, House Dem- ocrats are negotiating with the Trump Admin- istration to reach a bipartisan compromise, but the window of opportunity before the next U.S. election may close soon with no resolution. The U.S. Trade Representative and congressio- nal leaders are reporting progress in talks, but much work remains. IPC is working on getting a "yes" vote in Congress this fall, and we invite our U.S. members to join us in calling on your elected representatives to approve it without delay through the IPC Advocacy Team. U.S.-China Dispute Creating a Drag Across the Pacific Ocean, the United States and China are locked in a de facto trade war brought on by President Donald Trump's will- ingness to use pain-inducing tariffs to attempt to force China to accept long-desired con- cessions on intellectual property and mar- ket access. Tariffs of varying levels are now in place on most goods traded between the United States and China, and it's a challenge merely to keep track of the multiple lists of products that are affected and/or excluded. As of this writing, intermittent U.S.-China talks are back on again; both sides clearly want a deal, but there is no clear path for reaching one. Senior leaders from both countries will meet again in October. From IPC's perspec- tive, again, our members are located through- out the world—including the United States and China—and engaged in a variety of supply- chain relationships that cross multiple borders. Imposing tariffs on goods from a single coun- try like China gives a false notion that these are Chinese goods. More accurately, goods coming from China are often made by U.S. companies and support American jobs. IPC supports the right of all countries to address unfair trade practices, but the Trump administration's imposition of tariffs on China is self-defeating. The tariffs are effectively a tax on U.S. consumers and businesses, and they're creating significant uncertainties for businesses on all sides. There is also little evi- dence to suggest that the tariffs are bringing jobs back to the U.S. If anything, they are shift- ing investment and jobs to more stable devel- oping countries, such as Mexico and Vietnam. IPC maintains a network of offices and local representatives across the region, and we engage with policymakers in a variety of settings. We welcome member inquiries and suggestions about trade policy issues in these countries. Europe Also Embroiled in Uncertainty The theme of uncertainty is playing out in Europe as well. In the United Kingdom— which is home to dozens of IPC members employing nearly 200,000 people—the govern-