Freshman Dems Support IPEF

First-year Democrats are supporting the Administration’s decision to negotiate trade deals that are not focused on cutting tariffs, like the Indo-Pacific Economic Framework.

In a letter to President Biden, the freshmen Democrats endorsed the Administration’s “focus on setting the rules of commerce rather than cutting the few remaining US tariffs.”

That stance puts them at odds with many Congressional Democrats and Republicans on the House Ways and Means and Senate Finance Committees, who have been critical of the IPEF.

The letter was led by Reps. Nikki Budzinski (Ill) and Chris Deluzio (Pa).

The freshmen lawmakers said they expect the IPEF and other trade deals under negotiation to include strong worker rights and environmental protections and digital provisions that protect consumers and foster fair competition.

“As new Members of Congress representing diverse districts across the United States, we look forward to working with you to ensure US trade policy delivers for working people, helps to build a more resilient and fair economy, safeguards the environment, public health, and civil rights, and ensures independent farms, small businesses, and innovators can succeed,” they wrote.

They also called on the Administration to “work with us and our constituents in a transparent and inclusive manner.”

Using USMCA as a Model

The IPEF and other new agreements should improve on the US-Mexico-Canada Agreement’s. labor and environment protections and include “facility-specific enforcement of both,” they wrote.

“Any new pacts should only go into effect after our trade partners implement these obligations in their law and practice,” they continued. “The right rules and enforcement measures are key to ensuring any new agreements truly are worker-centered.”

They also called for a US digital trade policy that “prioritizes Congress’ role to regulate digital firms’ compliance with domestic labor, anti-trust and civil rights laws. Strong digital trade rules should ensure data privacy and security for workers and consumers, while discouraging outsourcing and preventing racial and other forms of discrimination.

Digital trade rules should also support fair competition by encouraging diverse marketplaces, promoting cyber-security for small and medium sized businesses, and limiting unhealthy market concentration and anti-competitive behavior by existing large firms.”