Interview with Maryscott “Scotty” Greenwood
Maryscott “Scotty” Greenwood is a partner at Crestview Strategy and the managing director of the U.S. region. As
a former chief of staff to the United States ambassador to Canada, a business and public policy advocate, communications expert and political strategist to Fortune 500 companies, trade associations and nonprofit organizations, she brings a wealth of knowledge, experience and expertise to the roles.
As the chief executive officer of the Canadian-American Business Council (CABC)1, she has repeatedly been recognized by Canadian newsweekly, and The Hill Times, which named her one of the country’s Top 100 Lobbyists (2017), Top 100 People Influencing Canadian Foreign Policy (2014) and Top 100 Most Influential People in Government and Politics (2010).
For the past two decades, Scotty has been a frequently requested public speaker, a skilled panel moderator, and an insightful media commentator on a range of issues from U.S. politics to Canada/U.S. relations and the future of free trade agreements in the world.
Q: From your knowledge and experience in North American trade, would you say the new NAFTA is a step forward for the relationships among the countries, especially considering the tense political climate it was produced from?
The negotiation of a new North American trade agreement has seen its fair share of challenging rhetoric. That said, if the agreement is ultimately approved in all three countries, it will be a major step forward for our economies, joint prosperity in our communities, and has the potential to be an example of economic leadership for the world. The original NAFTA, as successful as it is in many ways, is in need of an update. The new agreement makes significant strides in areas that are important to all three countries.
Q: NAFTA (North American Free Trade Agreement) was created in a very different economic and political climate than the one we live in today. Could you speak to how the agreement accounts for our current climate?
Certainly, we are living in very different times both in a political and economic sense than when NAFTA was ratified. Where citizens used to tune into the 6:00 p.m. television news each evening, we now see them scrolling through Twitter feeds to inform them of what’s important. Much like the modernization of how we consume information, the way we purchase goods and services has changed drastically from the days when NAFTA was created. We are living in a more connected, global world and our economy reflects that.
NAFTA removed numerous barriers to trade and business development; however, the barriers we see today didn’t exist back then. With the emergence of e-commerce, consumers are becoming accustomed to an economic landscape that is receptive to their needs, on their timeline, straight to their front door.
Q: What are some of the benefits that the United States-Mexico-Canada Agreement (USMCA/T-MEC2) brings to Mexico-U.S. trade?
In 2017, the United States exported $24 billion and $19 billion worth of agricultural products to Canada and Mexico, respectively. The two countries represent America’s largest and third-largest agricultural markets in the world. These exports support 325,000 American jobs.
Consider the agreement’s section on agriculture. USMCA/T-MEC is a big relief to Mexico’s avocado farmers who supply more avocados to Americans each year than to any other nation. The deal maintains zero tariffs on agricultural products for all three nations which helps farmers ship goods across borders very inexpensively, thus protecting farming jobs in Mexico and lowering Americans’ grocery and restaurant bills.
USMCA/T-MEC would boost job creation and wage gains for auto manufacturing workers as well. The deal requires 75 percent of a vehicle’s parts be manufactured in North America in order to qualify for tariff-free treatment, up from the current requirement of 62.5 percent. This provision will foster job growth in Mexico, the United States and Canada.
Q: Apart from manufacturing and agriculture, what other industries will see significant impacts from the updates made in the USMCA/T-MEC?
A number of industries will certainly see big changes. The USMCA/T-MEC devotes an entire chapter to small- and medium-sized businesses. America’s 30 million small businesses employ almost 60 million workers. Meanwhile, 99 percent of Mexico’s economy is comprised of small-and medium-sized enterprises.
The chapter includes provisions that cut down on paperwork for express shipments valued below $250 and eliminates duties and tariffs on all shipments up to $50 for Mexico. Lower costs and fewer administrative hassles will increase revenues, allowing firms to raise wages and hire new workers.
We can also see significant changes for producers of digital products such as film, software, music and e-books which are exempt from custom duties. As a result, businesses in IT-intensive industries, which support about 30 percent of jobs in the United States alone, will face fewer barriers when selling their products across North American borders.
Q: The negotiations for the USMCA/T-MEC were tense. Do you see that strain will continue as the process begins for lawmakers in Canada and the U.S. to ratify the deal?
Trade is of paramount national self-interest and trade negotiations are never easy but the parties bargained in good faith. When the deal was signed last October, all three governments declared it a win-win-win.
Put simply, USMCA/T-MEC makes commerce between Mexico, the United States, and Canada more streamlined than ever. Mexico has already ratified the agreement, and it would be in the best interests of both Canada and the United States to ratify as well, and as soon as possible.
Q: What are some of the political issues affecting ratification of the new USMCA/T-MEC in the United States?
The Democrats are seeing tougher enforcement provisions on labor and environmental protections, in particular, but they also are looking at the new agreement as part of a larger negotiation with President Donald Trump’s administration on the broad legislative agenda. They have talked about trading a new NAFTA deal for an infrastructure funding program or for renewed action on the Paris climate accord. Speaker Nancy Pelosi, Speaker of the U.S. House of Representatives, is not interested in giving up “something for nothing” and will exact a price from the administration in return for consideration of the trade agreement.
We also know that there is political support for the new agreement among both Democrats and Republicans. For example, thousands of individuals in Democratically-held districts in Michigan, Ohio, Wisconsin and Pennsylvania have urged ratification by faxing their representatives using the Canadian American Business Council online tool, our pointed way of reminding people that when the first Canada-U.S. free trade agreement was signed, cutting-edge technology meant fax machines.
Our outreach tells us daily that thousands of American small business owners want the new agreement signed, as do the farmers and ranchers who have taken a pounding from the tariffs that are the administration’s alternative should the USMCA/T-MEC fail to be ratified.
Q: What should we expect for the future of the USMCA/T-MEC?
North American trade policy has shown a remarkable ability to cross party lines over the years. The initial Canada-U.S. agreement was negotiated between U.S. President Ronald Reagan, a Republican, and Canadian conservatives. The deal to bring Mexico on board was struck between these same two parties and ratified with upgrades by Democratic President Bill Clinton and Canadian liberals.
Calling the USMCA/T-MEC “a better deal for workers on both sides of the border,” Canadian Prime Minister Justin Trudeau pointed to integral parts of the deal that “we look to the U.S. Democrats to understand are significant improvements and are issues that, like Canadian Liberals, they care deeply about.”
Overcoming the instinct to oppose trade deals has, over the past 30 years, created a powerful continental trading bloc that is well-equipped to confront challenges from China and others. On some issues, elected officials simply must find common ground and choose to govern. The USMCA/T-MEC is a rare piece of good news at an ominous moment for global free trade.
Maryscott “Scotty” Greenwood is CEO of the Canadian-American Business Council.
1 The Canadian American Business Council (CABC), established in 1987, is a nonprofit, nonpartisan, issues-oriented organization dedicated to promoting private sector initiatives that affect Canada and the United States. CABC members employ about two million people and have annual revenues of close to $1.5 trillion. The Council’s activities include high-level briefings on issues of current concern, assistance with practical trade and policy challenges. For more information, visit http://cabc.co.
2 In the United States, the agreement is called USMCA (United States, Mexico and Canada Agreement); in Mexico, it is T-MEC (Tratado entre México, Estados Unidos y Canadá); and, in Canada, it is called CUSMA (Canada, United States and Mexico Agreement).
