Trade Promotion Authority Bill Introduced in Both Houses of Congress

April 17, 2015
SGB Update

Leaders from both parties introduced Trade Promotion Authority (TPA) legislation in both Houses of Congress Thursday that President Obama needs to consummate a new trade deal in Asia that is widely supported by athletic and outdoor brands.

Senate Finance Committee Chairman Orrin Hatch (R-Utah), Ranking Member Ron Wyden (D-Ore.) and House Ways and Means Chairman Paul Ryan (R-Wis.) said the bipartisan, bicameral bill establishes concrete rules for international trade negotiations to help the United States deliver strong, high-standard trade agreements that will boost American exports and create new economic opportunities and better jobs for American workers, manufacturers, farmers, ranchers and entrepreneurs.

The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015) outlines 21st century congressional negotiating objectives that any administration – Republican or Democratic – must follow when entering into and conducting trade talks with foreign countries while also increasing transparency by requiring that Congress have access to important information surrounding pending trade deals and that the public receive detailed updates and see the full details of trade agreements well before they are signed.  When the trade agreement meets the United States’ objectives and Congress is sufficiently consulted, the legislation allows for trade deals to be submitted to Congress for an up-or-down vote, an incentive for negotiating nations to put their best offer forward for any deal.  At the same time, the bill creates a new mechanism to withdraw TPA procedures and hold the administration accountable should it fail to meet the requirements of TPA.  

Obama Administration welcomes bill
U.S. Trade Representative Michael Froman, who is Obama's senior trade advisor, immediately welcomed the news.

“The Bipartisan Trade Priorities and Accountability Act represents the most significant upgrade to our approach to trade in over four decades, including the requirement that labor and environmental protections be fully enforceable; new requirements for taking on unfairly subsidized foreign state owned enterprises; strong and balanced intellectual property protections; and new consultations and transparency requirements,” said Froman. “These provisions put American workers first and reflect the seismic shifts we have seen in the global economy since 2002, when Congress last passed trade promotion legislation.

Hatch noted that the absence of Trade Promotion Authority since 2007 had put U.S. businesses at a competitive disadvantage.

“While other nations have moved forward and created trade agreements to benefit their workers, the United States has fallen behind,” Hatch said. “This is a smart, bipartisan compromise that will help move America forward. The renewal of TPA will help American workers and job creators unlock new opportunities for growth and promote better, higher-paying jobs here at home. If we want to maintain our nation’s economic leadership and promote American values around the world, we must reach beyond our borders, and this bill is a strong first step.”

Democrats say labor and environmental standards intact
Wyden noted that the bill includes key provisions Democrats have insisted on, including Trade Adjustment Assistance and the Health Coverage Tax Credit that provide assistance to U.S. workers displaced by trade liberalization and labor and environmental standards.

“I'm proud this bipartisan bill creates what I expect to be unprecedented transparency in trade negotiations, and ensures future trade deals break new ground to promote human rights, improve labor conditions, and safeguard the environment. At the core of this agreement is a new mandate for the Open Internet, free speech and digital commerce, by ensuring information can flow freely across national borders over the Internet.”

Ryan said the bill helps ensure that the United States is writing the rules of the global economy, instead of nations like China.

“The bill makes sure that Congress will set the priorities in our trade agreements, and it includes unprecedented accountability, transparency, and enforceability measures,” Ryan said. “TPA will help us get the best deals for the American economy and American workers.”

TPA-2015 creates a stronger, more effective framework for Congress to partner with an administration in the pursuit of trade agreements that meets the demands of the 21st century global economy – a framework that ensures Congress has a strong voice in negotiations.

Currency manipulation, IP safeguards addressed
The bill establishes new trade-negotiating objectives that reflect today’s economic challenges, including measures to combat currency manipulation, and eliminate barriers to innovation and digital trade, among others.  Updated provisions address government involvement in cyber theft, protect trade secrets and the negotiating objectives continue to call for trade agreements to provide a high standard of intellectual property protection. The bill also updates provisions to promote human rights, and strengthen labor and environment protection, to reflect America’s most recent trade accords.

Congressional oversight strengthened
Furthermore, TPA-2015 modifies TPA procedures to enhance accountability of the Executive Branch and further strengthen congressional oversight and creates a new mechanism for the removal of expedited procedures for a trade agreement if, in the judgment of either the House or Senate, that agreement does not meet the requirements of TPA.

The TPA bill comes as the two of the most ambitious trade negotiations in the nation’s history – the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP) – are underway to further tear down trade barriers to American goods and services. According to data from the World Bank, together these two trade agreements would further open markets encompassing nearly 1.3 billion customers and approximately 60 percent of global gross domestic product. [1]

TPA expired in 2007 and is needed for the United States to successfully conclude these negotiations.

A summary the bill can be found here, section-by-section summary of bill here and a copy of the bill text can be found here.

Trade Promotion Authority Bill Introduced in Both Houses of Congress

January 13, 2014
SGB Update

Bills to give the President greater authority to negotiate Trade Agreements were introduced in the U.S. House of Representatives and Senate, prompting praise from two of the nation's largest sporting goods trade associations.


The Trade Priorities Act of 2014 (TPA) would grant the President “Trade Promotion Authority” allowing him to negotiate trade agreements and submit them to Congress for a straight up or down vote with no opportunity to amend the agreement.  In exchange for TPA powers, the President would follow guidelines established by Congress. TPA is critical to passing the Trans-Pacific Partnership (TPP), which is in the final negotiation stage, and the recently launched Trans-Atlantic Trade and Investment Partnership (TTIP) negotiations with Europe.

 

“Introduction of TPA is a major step in the right direction for improving the trade environment for SFIA members,” said Bill Sells, SFIA vice president of government relations. “The current trade playing field is tilted against U.S. companies. Passage of trade agreements that give U.S. manufacturers greater access to foreign markets will benefit U.S. businesses and the economy.  The Trade Priorities Act of 2014 also presents the best opportunity to reinstate preferred duty status on thousands of products covered in the Miscellaneous Tariff Bill and the Generalized Systems of Preferences.”  

 

 

Outdoor Industry Association (OIA) said adoption of the TPP and TTIP agreements could have substantial benefits for outdoor manufacturers, retailers, and consumers.


 

“International trade agreements with 21st century standards will help OIA members expand their global presence, making the most of the global value chain in order to meet the demands of the American consumer for high-quality outdoor apparel, footwear, camping gear and other products,” said Kirk Bailey, Vice President of Government Affairs for OIA. “TPA is an essential tool for the Obama administration to conclude the negotiations on TPP and T-TIP. Its passage would help lower costs, fuel innovation, break down trade barriers, create more jobs and encourage more Americans to get outdoors. It is also our hope that TPA will become the core of a trade package for Congress to consider expired trade programs and other long standing trade initiatives.”


 

TPA was last passed in 2002 and expired in 2007.  Since 2007, the flow of trade agreements has slowed and the scope has been limited to bi-lateral agreements with a single trading partner.  The Senate TPA bill was introduced jointly by Senate Finance Chairman Max Baucus (D-MT) and ranking member Orrin Hatch (R-UT).  The top Democrat on the House Ways & Means Committee, Sander Levin (D-MI) did not join Ways & Means Chairman David Camp (R-MI) in introducing the House TPA bill due to opposition from organized labor.  President Obama supports TPA and will have to build Democratic support in the House to ensure passage of TPA. Click here to contact Congress.

 

 

The Trade Priorities Act is a major development as it provides Congress with a vehicle to consider several tariff relief bills that expired in 2013.  Temporary tariff-relief on basketballs, volleyballs and golf bags expired on January 1, 2012 and new duty relief on golf club heads has not been enacted due to stalemate on trade matters.  In all there were 11 SFIA-led tariff relief bills included in the Miscellaneous Tariff Bill (MTB) Congress introduced in 2012 and again in 2013 but has not moved due to philosophical differences despite having broad support in Congress. The total tariff relief for the effected sporting goods products is estimated at $5.5 million.

 

 

The Generalized Systems of Preference (GSP) provides favorable tariff treatment on more than 5,000 products made in nearly 140 countries with developing economies.  In 2012, GSP tariff relief was estimated at $750 million on $19.9 billion in GSP imports. The GSP expired on July 31, 2013 and Congress has not worked to renew GSP due to concern over the lost tariff revenue.   

 

The Miscellaneous Tariff Bill (MTB) and legislation to renew the Generalized Systems of Preference (GSP) could be attached to The Trade Priorities Act of 2014 to create a broad trade bill for Congressional consideration.
 

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