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.