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Ag central for Congressional trade measures consideration

 

By MATTHEW D. ERNST

Missouri Correspondent

 

WASHINGTON, D.C. — Agriculture remained central in Congress last week, as both houses considered trade legislation, including trade agreements with Asia and Europe as well as action to lessen trade embargos with Cuba.

The Senate Finance Committee passed the Bipartisan Congressional Trade Priorities Act of 2015, the bill with Trade Promotion Authority (TPA), on April 22. That bill passed the House Ways and Means Committee on April 23.

"Congress, we are now depending on you to pass Trade Promotion Authority," said Chip Bowling, National Corn Growers Assoc. president, who urged floor votes on the bipartisan legislation "as soon as possible."

Most farm commodity groups are encouraging Congress to pass TPA, which would give the U.S. Trade Representative authority to negotiate foreign trade deals that could not be amended by Congress. TPA is considered by the White House and most Republicans as a linchpin for finalizing the Transpacific Partnership (TPP), which could reduce tariffs and other barriers in Southeast Asia.

But some farm interests expressed reservations. "Trade Promotion Authority for the Transpacific Partnership fails to address our nation’s massive and growing trade deficit or currency manipulation in member countries of TPP negotiations," said Roger Johnson, National Farmers Union president.

"Congress should maintain its constitutional authority to address these concerns by rejecting TPA legislation that removes it."

"Currency manipulation" includes trade-restrictive monetary policy moves made by countries after eliminating trade tariffs. Some U.S. lawmakers have criticized Asian economies, especially Japan, for such trade tactics.

Two amendments in the House committee, supported by Ranking Member Sandy Levin (D-Mich.), called for enforcing currency disciplines on Japan. Those amendments failed in committee last week.

Currency manipulation has been an especially sticky issue for some manufactured goods, including automobiles.

According to the Senate Finance Committee, the bill includes provisions addressing currency manipulation in a way that would not invite international backlash on U.S. monetary policy.

"This approach is supported by the administration, including the Treasury Department," stated a release from the Finance Committee, which said 10 former Treasury secretaries supported the Republican approach.

Still, Levin, who wants to give the White House a shorter leash in negotiating trade agreements, insisted the Republican version of TPA is not the answer for sealing the Pacific deal.

"TPP is too important to leave so many key issues outstanding or needing to be improved, and essentially leave out a meaningful role for Congress, which is what the Hatch-Wyden-Ryan TPA bill does," he said.

That point was disputed by Rep. Kevin Brady (R-Texas), a House Ways and Means Committee member, who said the Republican bill requires the White House to provide Congress a copy of a completed trade agreement 60 days before signing.

Under the Republican proposal, Congress can "turn off" the administration’s expedited trade authority if it judges the administration has not followed its procedural obligations.

"With 95 percent of the world’s customers outside our borders, American business and workers need a strong TPA," said Brady.

Both House and Senate bills now move to floor debate.

Cuba and EU issues

 

A European Commission proposal made last week could affect trade of genetically modified (GMO) food and feed to Europe.

The proposal would allow individual European Union (EU) countries to limit the import of GMO products, bypassing recommendations for GMO approval from the European Food Safety Authority.

"This proposal adds a third layer to the already lengthy and uncertain European approval process," said Jim Greenwood, president and CEO of BIO, the largest trade association of biotechnology companies.

U.S. Trade Representative Michael Froman also criticized the proposal, which he said could create 28 different markets in Europe.

"At a time when the U.S. and the EU are working to create further opportunities for growth and jobs through the Transatlantic Trade and Investment Partnership, proposing this kind of trade restrictive action is not constructive," he said.

The TPA legislation approved by committees in the House and Senate would not weaken the ability of the United States to respond to the European proposal, according to exchanges during committee proceedings. The TPA legislation was a focus near the end of last week; earlier in the week, the Senate Agriculture Committee heard testimony about another high-profile trade issue – the lifting of the Cuban trade embargo.

Doug Keesling, a Kansas farmer representing Kansas Wheat, told the committee that removing trade barriers with Cuba is important. "If Cuba is to become a successful export market for U.S. farmers, these regulatory obstacles need to be repealed. But more than that, we need to see the trade sanctions in their entirety lifted," said Keesling, who estimated the Cuban wheat market at some $200 million.

Sen. Debbie Stabenow (D-Mich.) said opening trade to Cuba continues to be attractive for U.S. agricultural interests. She said the United States exported less than $300 million in agricultural goods to Cuba in 2014; this year, exports will total $2.2 billion.

"That type of economic potential deserves a chance to succeed – and is one reason why many of the largest producer groups, trade associations and companies from within agriculture have come together to push for increased engagement," the former chair of the Senate Ag Committee said.

4/29/2015