The North American Free Trade Agreement submitted to the Congress by the President for approval on November 4, 1993, is the culmination of an initiative launched over three years ago. In a Joint Statement issued in Washington on June 11, 1990, President Salinas and President Bush endorsed the objective of a free trade agreement as the best means for attaining the agreed objectives of a vigorous economic relationship, maintaining sustained growth, and expanding trade and investment between the two countries. The Presidents directed their respective trade ministers to undertake consultations and to do the preparatory work needed to initiate negotiations on such an agreement, and to report back to them as soon as practicable.
On August 8, 1990, the U.S. Trade Representative, Carla A. Hills, and the Mexican Secretary for Commerce and Industrial Development, Jaime Serra Puche, jointly recommended to the Presidents the initiation of formal negotiations, in accordance with each country's domestic laws, on a comprehensive free trade agreement, following preliminary consultations with private sector representatives and Members of Congress.
In a letter dated August 21, 1990, President Salinas of Mexico formally proposed to President Bush the initiation of formal negotiations as soon as possible for a free trade agreement between the United States and Mexico.
On September 25, 1990, President Bush notified the Chairman of the Committee on Ways and Means, pursuant to section 1102© of the Omnibus Trade and Competitiveness Act of 1988, of trade negotiations with Mexico. The letter also informed the Committee of the expressed desire by the Government of Canada to participate in the negotiations with a view to negotiating an agreement or agreements among all three countries, and of the interest of the three governments to consult on this possibility.
On February 5, 1991, President Bush notified the Chairman of the Committee on Ways and Means that he, President Salinas, and Prime Minister Mulroney had agreed, on the basis of the trilateral consultations and consultations with the private sector and Members of Congress, to seek a three-way free trade area. Although recognized as not necessarily technically required by section 1102 of the 1988 Act, the President formally notified the Committee of trade negotiations with Canada.
On March 1, 1991, President Bush requested the Congress to extend the fast track procedures for implementation of multilateral or bilateral trade agreements for two years ending June 1, 1993, to enable completion of the GATT Uruguay Round of multilateral trade negotiations and the proposed North American Free Trade Agreement. A number of Congressional concerns about free trade with Mexico were conveyed in letters during March to the President jointly from the Chairmen of the House Committee on Ways and Means and the Senate Committee on Finance and from the Majority Leader of the House.
On May 1, 1991, the President responded with a set of detailed action plans for addressing these issues, including labor and environmental concerns, as well as views on the economic impact of the proposed free trade agreement (WMCP: 102-10). The fast track procedures were automatically extended for the additional two-year period for trade agreements entered into before June 1, 1993, when neither House of Congress passed by May 31, 1991, a resolution disapproving extension.
On March 8, 1993, the Speaker of the House reconstituted a Trade Agreement Coordinating Group, originally established in the 102nd Congress, chaired by the Chairman of the Committee on Ways and Means and consisting of the chairmen and ranking minority members of committees of jurisdiction over matters involved in trade negotiations or likely to be affected by trade agreement implementing legislation, the Majority and Minority Leaders, and co-chairs of the Democratic Trade Task Force. The corresponding coordinating group at the staff level, chaired by the Chief Counsel and Staff Director of the Committee on Ways and Means, was also continued. This group was the primary coordinating mechanism in the House for monitoring the progress of the NAFTA negotiations and later the informal consultation process with the Administration on developing the draft implementing legislation.
Under the auspices of the Coordinating Group, frequent briefing sessions were held at the Member and staff level with Administration negotiators on all subjects under discussion, beginning in June 1991 and continuing until the NAFTA and supplemental agreement negotiations were concluded. Given the broad interest of Members generally in a free trade area with Mexico, the briefings were open to Members and staff at large, in addition to those on committees of jurisdiction.
In addition, the Committee on Ways and Means and other committees of jurisdiction, as well as various Member caucus groups, held Member and staff- level meetings with Administration officials, particularly the USTR, throughout the negotiations on issues of their particular interest.
On August 12, 1992, President Bush announced the completion of negotiations for a comprehensive North American Free Trade Agreement between Mexico, Canada and the United States. At that time, the Administration issued various documents, including a negotiated summary of the Agreement.
On September 18, 1992, President Bush officially notified the Speaker of the House and the President of the Senate, in accordance with the 90-day notice requirement under section 1103(a)(1) of the 1988 Act, of his intent to enter into a NAFTA with the Governments of Mexico and Canada. The notice was accompanied by the reports of 38 private sector advisory committees on the draft Agreement as required by section 135 of the Trade Act of 1974. The President committed to work closely with the Congress to develop appropriate implementing legislation. The Administration also issued a report at that time on the benefits of the NAFTA and actions taken to fulfill the commitments made by the President on May 1, 1991 on worker adjustment, labor rights, and environmental protection.
On October 7, 1992, President Bush, President Salinas, and Prime Minister Mulroney met in San Antonio, Texas, to discuss plans for implementing the NAFTA and affirmed their shared commitment to adopt the agreement in 1993, to take effect on January 1, 1994. The three trade ministers who negotiated the agreement--U.S. Trade Representative Carla Hills, Secretary Jaime Serra, and Minister Michael Wilson--initialed the NAFTA draft legal text.
On December 17, 1992, the expiration date of the 90-day minimum notice period, President Bush, President Salinas, and Prime Minister Mulroney signed the NAFTA in their respective capitals. On that day, President-elect Clinton reaffirmed his support for the NAFTA but reiterated his campaign pledge that three supplemental agreements would be required before proceeding with the implementing legislation. These three supplemental agreements would cover the environment, workers, and special safeguards for unexpected surges in imports.
On August 13, 1993, U.S. Trade Representative Michael Kantor announced agreement by the three governments on supplemental agreements to the NAFTA on labor cooperation, on environmental cooperation, and on import surges. He also announced a basic agreement on a new institutional structure for funding environmental infrastructure projects in the U.S.-Mexican border region. The NAFTA side agreements were signed in a White House ceremony on September 14, 1993.
Informal staff-level consultations began in February 1993, between the USTR and committees of jurisdiction, and with House and Senate legislative counsel on those changes in U.S. statutes or additional authorities necessary to implement NAFTA obligations. Beginning in June, the Coordinating Group at the staff level held periodic meetings to coordinate the development of agreed draft texts between committees of joint jurisdiction as well as provisions in the jurisdiction of other committees for inclusion in a consolidated draft bill. House and Senate legislative counsel drafted the text of the proposed implementing bill, initially from drafts supplied by the Administration.
In a letter to the Speaker of the House dated September 28, 1993, the President emphasized the importance of Congress voting on a NAFTA implementing bill before adjournment in 1993, to enable the Agreement to take effect on January 1, 1994, as scheduled. To meet that timetable, the President proposed the completion of informal consultations between the Administration and all Congressional committees of jurisdiction on the joint drafting of an implementing bill by November 1 to permit introduction at that time.
On November 2, 1993, the Speaker of the House and the Majority Leader of the Senate transmitted to the U.S. Trade Representative proposed implementing legislation for the NAFTA, and proposals for inclusion in the Statement of Administrative Action as developed through informal consultations between House and Senate committees of jurisdiction and the Administration. The legislation noted the few items on which informal consensus could not be reached between the House and Senate and for which the Administration would have to make the final judgment with respect to inclusion in the bill.
On November 4, 1993, President Clinton sent two letters of transmittal to the Congress covering: (1) transmittal of the text of the NAFTA, together with the draft implementing bill, Statement of Administrative Action; and supporting documents as required under section 1103(a) of the 1988 Act for Congressional approval (House Document 103-159, vol. 1 and 2); and (2) transmittal of supplemental agreements to the NAFTA on labor, the environment, and import surges, and additional agreements and documents (House Document 103-160). The supplemental agreements and the other agreements are Executive agreements that do not require Congressional approval but are part of the entire NAFTA package to be considered by Congress in deciding whether to approve the implementing bill.
As provided under section 151 of the Trade Act of 1974, the implementing legislation was introduced as H.R. 3450 in the House on November 4, by Mr. Rostenkowski (as designee of the Majority Leader) for himself and Mr. Archer (as designee of the Minority Leader), by request, and jointly referred to eight committees of jurisdiction: Ways and Means; Agriculture; Banking, Finance, and Urban Affairs; Energy and Commerce; Foreign Affairs; Government Operations; and Public Works and Transportation. The bill was introduced in the Senate on November 4 as S. 1627 and referred to the Committee on Finance.
