Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/21/2019 01:30 PM LABOR & COMMERCE
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SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE 2:39:06 PM CHAIR REINBOLD reconvened the meeting. She announced that the final order of business would be SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE. 2:39:36 PM ERIN MCLAUGHLIN, Intern, Senator Mia Costello, Alaska State Legislature, Juneau, said that she is an intern in the Senator Ted Stevens Legislative Internship Program working for Senator Costello. She introduced SJR 8 speaking to the following prepared statement. • Thank you, Madam Chair and Labor and Commerce Committee members • For the record name • I am here today to present Senator Costello's Senate Joint Resolution No. 8 • Two goals to the resolution 1. to encourage the federal gov. to ratify the New North American Free Trade Agreement, New NAFTA, or the United States Mexico Canada Agreement, USMCA. For the purpose of this hearing I will refer to the agreement as the New NAFTA. 2. While the resolution does support the New NAFTA, it is against the 25 percent tariffs on steel and 10 percent tariff on aluminum 2:40:30 PM MS. MCLAUGHLIN continued. • In November after more than a year of negotiations, the United States, Canada and Mexico reached an agreement to update the North American Free Trade Agreement • which governs more than $1.2 trillion worth of trade among the three nations • The new deal won't go into effect right away. Most of the key provisions don't start until 2020 • This is because leaders from the three countries have to sign it • then Congress and the legislatures in Canada and Mexico have to approve it, a process that is expected to take months. 2:41:03 PM MS. MCLAUGHLIN emphasized that the agreement was not yet ratified. She continued: • Madam Chair let me illustrate the vital importance of Senator Costello's Joint Resolution today • The New NAFTA would play an important role on a growing part of Alaska's economy • While there are numerous provisions to the 1994 NAFTA there is one area of the New NAFTA that supports a growing sector in Alaska o Intellectual property • Senate Joint Resolution No. 8 supports the New NAFTA since it brings the trade agreement into the modern era o It brings protections for patents and trademarks, which includes biotech, financial services and even domain names • Alaska hosts a variety of programs and institutions that enable the growth of innovation and entrepreneurship, which positions the state to compete in the global economy. • One of those institutions is the Office of Intellectual Property and Commercialization which is one of the University of Alaska Research Centers. o dedicated to the development and commercialization of intellectual property, research and development, ability to conduct sponsored research 2:42:26 PM MS. MCLAUGHLIN continued: • Madam Chair while the resolution does support the New NAFTA it is against the tariffs on steel and aluminum • On March 1, 2018 the federal administration announced that the US would be imposing 25 percent tariff on steel and a 10 percent tariff on aluminum, which Mexico and Canada would be granted waivers for • o However, they were later imposed on Canada and Mexico • This resulted in retaliatory tariffs, which would be lifted as soon as the US removes their imposed tariffs • 2:43:19 PM MS. MCLAUGHLIN continued. • The United States relationship with Canada is vital to the Alaskan economy • According to a study commissioned by the Embassy of Canada, 21,300 Alaskan jobs depend on trade and investment with Canada • In 2017, Alaska exported $707 million dollars to Canada, $331 million of which was metal, according to the office of United States Trade Representative • The trade Representative also reports that Canada imports $16 million in Iron and steel tubes, pipes, and sheets from Alaska. • The tariffs on steel and aluminum harm the industry and workers on both sides of the Canada- US border by disrupting supply chains • Senator Costello has reached out to the Alaskan Congressional Delegation. U.S. Senator Sullivan said that he supports the ratification of the New NAFTA and he also is against the tariffs on steel and aluminum. • Once again Madam Chair thank you for the opportunity to present Senator Costello's Senate Joint Resolution No. 8 to the Labor and Commerce Committee 2:44:35 PM SENATOR BISHOP complimented her on the excellent delivery. He said he was proud of her. SENATOR GRAY-JACKSON echoed Senator Bishop's comments. 2:45:38 PM CHAIR REINBOLD opened public testimony on SJR 8. CHAIR REINBOLD reviewed committee announcements. 2:46:59 PM MATTHEW MORRISON, Chief Executive Officer (CEO), Pacific NorthWest Economic Region, Seattle, stated that Senator Murkowski estimated that the aluminum and steel tariffs would increase the proposed natural gas pipeline by $500 million. He urged members to support SJR 8. He commended Ms. McLaughlin's testimony. 2:47:51 PM SENATOR COSTELLO commended Ms. McLaughlin's presentation. She said her performance is a testament to the value of the intern program, in which university students have the opportunity to serve as full-fledged staffers in the legislature. She said she strongly supports the program. CHAIR REINBOLD held SJR 8 in committee with public testimony open.