03/26/2019 01:30 PM Senate LABOR & COMMERCE

          SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE                                                                       
                                                                                                                                
1:38:06 PM                                                                                                                    
CHAIR  REINBOLD reconvened  the  meeting and  announced that  the                                                               
next order  of business would  be SENATE JOINT RESOLUTION  NO. 8,                                                               
Supporting  the ratification  of the  United States-Mexico-Canada                                                               
Agreement  on trade;  encouraging the  federal Administration  to                                                               
remove the steel and aluminum  tariffs on imports from Canada and                                                               
Mexico; and  urging the  United States  Congress and  the federal                                                               
Administration   to  call   on  Canada   and  Mexico   to  remove                                                               
retaliatory tariffs on  all goods and services  exported from the                                                               
United States.                                                                                                                  
                                                                                                                                
1:38:21 PM                                                                                                                    
ERIN  MCLAUGHLIN,  Intern,  Senator Mia  Costello,  Alaska  State                                                               
Legislature, Juneau,  presented SJR 8  on behalf of  the sponsor.                                                               
She  reported that  Congressman Don  Young said  that he  did not                                                               
have  an  official  position,  but   he  would  be  listening  to                                                               
Alaskans. Thus,  passage of SJR  8 would inform him  of Alaskans'                                                               
stance on trade, she said.                                                                                                      
                                                                                                                                
1:39:00 PM                                                                                                                    
MATT  MORRISON,   Chief  Executive  Officer,   Pacific  Northwest                                                               
Economic  Region  (PNWER),  Seattle,  stated  that  Alaska  is  a                                                               
founding PNWER  member and has  been PNWER's partner  since 1991.                                                               
He said that  trade and cooperation with Canada  is important and                                                               
essential  to  Alaska especially  since  Alaska  connects to  the                                                               
Lower 48  through Canada. He  said the North American  Free Trade                                                               
Agreement (NAFTA) has provided an  important framework for trade.                                                               
In 2017,  Canada bought $700  million in exports from  Alaska, he                                                               
said.   The   United   States-Mexico-Canada   Agreement   (USMCA)                                                               
negotiations would  provide an updated  agreement for  NAFTA. The                                                               
Congress needs  to hear from the  states that it is  important to                                                               
ratify the USMCA agreement, he said.                                                                                            
                                                                                                                                
He stated  that SJR 8 seeks  to accomplish two things.  First, it                                                               
expresses  to the  Congress  that ratification  of  the USMCA  is                                                               
important. Second,  it would call  on the  administration, Canada                                                               
and  Mexico  to remove  the  tariffs  that adversely  impact  the                                                               
region.  He  reported  that  Section 232  tariffs  on  steel  and                                                               
aluminum, in  particular, affect Alaska. At  last week's hearing,                                                               
he mentioned that U.S. Senator  Lisa Murkowski estimated that the                                                               
cost  of  steel represented  10  -  20  percent  of the  cost  to                                                               
construct  and operate  an oil  field. Certainly,  it would  be a                                                               
major  cost in  pipeline construction,  he said.  The tariffs  on                                                               
steel  and  aluminum  could increase  any  pipeline  construction                                                               
costs  by three  to five  percent. For  example, these  increased                                                               
tariffs  would cost  an  additional $75  million  for a  280-mile                                                               
project.  This  could also  increase  the  cost of  the  proposed                                                               
natural gas pipeline by up to $500 million, he said.                                                                            
                                                                                                                                
MR.  MORRISON related  that  the second  part  of the  resolution                                                               
requests  a  waiver  on  Canada  and Mexico  for  the  steel  and                                                               
aluminum  tariffs   and  requests  those  countries   remove  the                                                               
retaliatory tariffs  on U.S.  producers. He  said that  PNWER has                                                               
considered this  agreement from many  perspectives and  has found                                                               
that  most   states  are  considering  similar   resolutions.  He                                                               
reported that  a resolution  has passed in  the Idaho  Senate and                                                               
the  Montana Senate.  A resolution  has also  been introduced  in                                                               
Oregon, as well. He said that  PNWER believes that the USMCA will                                                               
be  good  for  the  region.  He  has  met  with  members  of  the                                                               
Congressional delegation  and delegation members were  anxious to                                                               
hear  from  the  states.  He  reiterated  that  SJR  8  seeks  to                                                               
officially recognize the importance of the USMCA to Alaska.                                                                     
                                                                                                                                
1:43:23 PM                                                                                                                    
CHAIR REINBOLD closed public testimony on SJR 8.                                                                                
                                                                                                                                
1:44:12 PM                                                                                                                    
CHAIR REINBOLD asked to have the objection removed.                                                                             
                                                                                                                                
SENATOR BISHOP removed his objection.                                                                                           
                                                                                                                                
1:44:24 PM                                                                                                                    
SENATOR COSTELLO moved  to report SJR 8,  work order 31-LS0488\A,                                                               
Version  A, from  committee with  individual recommendations  and                                                               
attached  fiscal note(s).  There being  no objection,  SJR 8  was                                                               
reported from the Senate Labor and Commerce Standing Committee.