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Congress mulls trade deals and authority, again

 

By MATTHEW D. ERNST

Missouri Correspondent

 

ST. LOUIS, Mo. — Negotiations are nearing conclusion on a Pacific trade agreement supported by many U.S. agriculture interests; meanwhile, the United States and Europe continue discussions on a free trade agreement, even while both the White House and Congressional Republicans push for granting trade promotion authority, or "fast-track," to help the nation in present and future trade negotiations.

Negotiations on the Transpacific Partnership, or TPP, could conclude within the month, according to Australian Trade Minister Andrew Robb. "Mid-February to mid-March – that will be, I think, the time frame. We might have to come back again to conclude some things but that’s the intent," said Robb, according to a Feb. 5 interview transcript his office published.

Twelve countries are involved in the TPP negotiations, the latest round finishing last week in New York. Michael Froman, U.S. Trade Ambassador, said agriculture stands to benefit big from it. "TPP will lower barriers for U.S. exports to 11 markets in the world, some of the fastest-growing markets in the world, altogether representing 40 percent of the global economy," he said at last week’s meeting of the National Assoc. of State Departments of Agriculture.

Ag and automobiles were some of the final points in the talks, according to the National Pork Producers Council (NPPC), one of U.S. farming’s strongest proponents for the TPP. Reports from the Japanese business press indicated last week that Japanese trade negotiators have proposed cutting tariffs on beef and pork, but imposing some volume limits for the lower tariffs.

After the negotiators complete their talks, the trade agreement will have to be ratified by each country, said Robb. He saw a positive prospect for ratification in Australia, as well as the United States. "Of course it has to get through every country’s parliamentary procedures – including our own – so I am not taking any of that for granted, but I think if we do a deal which is fair and attractive, as the other three were last year, then we should be able to get it through our parliamentary process and get bipartisan support," he said.

Trade promotion authority

 

But legislative approval for the TPP could be more complicated than an up-or-down vote from Congress. That is because the White House and other TPP supporters – including many Repub-licans – want to grant the president trade promotion authority.

This gives the president objectives and priorities for trade agreements, establishing the framework to be followed throughout the negotiation process, in which the White House keeps Congress totally informed of the trade negotiations. When it is time to approve a trade deal, under trade promotion authority, Congress may not amend the agreements.

Rep. Paul Ryan (R-Wis.), chair of the House Ways and Means Committee, said trade promotion authority is vital for negotiating the best trade deals. "When the United States sits down at the negotiating table, every country at that table has to be able to trust us," he said Feb. 5.

"They have to know that the deal the administration wants is the deal Congress wants, because if our trading partners don’t trust the administration – if they think it will make commitments that Congress will undo later – they won’t make concessions."

Since trade promotion authority stipulates Congress will conduct a simple up-or-down vote on trade deals, it provides more bargaining power for U.S. negotiators. According to a Jan. 26 letter NPPC President Howard Hill sent to each member of Congress, passage of trade promotion authority will aid the Pacific deal.

"Legislation renewing TPA would send a strong signal to the (TPP) countries and to the world that the United States is committed to expanded global trade," said Hill.

Trade promotion authority is expected to come to a vote in the Republican-controlled Senate. The former Democratic leadership did not favor it, owing largely to concerns over possible impacts of free trade deals on the U.S. workforce. The Republican House leadership favors trade promotion authority.

"We simply can’t get the best deals without TPA. That’s why we’ve got to pass it as soon as possible," said Ryan.

Europe

 

Froman said progress is also being made to send more American farm products to Europe. "At the same time we’re working to conclude this agreement with the Asia-Pacific, we’re also working on our negotiations with the European Union, the Transatlantic Trade and Investment Partnership, or T-TIP," he said. "There, we’re focused on knocking down tariff and non-tariff barriers that have prevented American producers from competing in that market."

One barrier to expanded trade with Europe is blockage of some genetically modified crops. That will continue to play a part in negotiations.

"As we’ve made clear, we’re not trying to force anyone to eat anything, but we do think decisions about what’s safe should be made by science, not by politics," said Froman.

2/11/2015