[CTC] Ryan Omits Human Trafficking Amendment, Says It Could Complicate TPP

[Arthur Stamoulis]

Inside U.S. Trade 
Daily News
Ryan Omits Human Trafficking Amendment, Says It Could Complicate TPP
Posted: April 24, 2015
House Ways & Means Committee Chairman Paul Ryan (R-WI) at the April 23 markup of the fast-track bill refused to include a provision that would likely affect Malaysia for its failure to fight human trafficking with the argument that the amendment could complicate the negotiations for the Trans-Pacific Partnership (TPP).

The amendment in question was adopted at the Senate Finance Committee’s markup of the fast-track legislation, also known as Trade Promotion Authority (TPA), after being offered by Sen. Robert Menendez (D-NJ). It would strip fast-track procedures from a trade agreement with any country listed under the most egregious category of a State Department report on human trafficking.

Malaysia, which is participating in the TPP negotiations, currently falls into this category.

Ryan opted not to include the Menendez provision in a chairman’s amendment that added to the House bill two other amendments that Finance approved at its April 22 markup of the fast-track bill.

One of them makes it a principal negotiating objective in the TPA bill to strengthen good governance, transparency, the effective operation of legal regimes and the rule of law "through capacity building and other appropriate means," instead of listing these goals in a section of more general objectives.

The second amendment offered by Ryan makes it a principal TPA negotiating objective of the U.S. in the Transatlantic Trade and Investment Partnership talks to discourage EU member states from adopting policies that aim to limit economic ties with Israel as a way of pressuring it to resolve the conflict with the Palestinians.

Ryan justified his refusal to include the Menendez provision in an amendment he was offering to the TPA bill by saying would make it "much more difficult for this administration to negotiate TPP with all of the TPP countries" because it singles out one country. He was pressed on his refusal to include the provision by Rep. Lloyd Doggett(D-TX).

The administration has long insisted that its trade policy differs from that of its predecessors because it is driven by American values, both on the economic front and in terms of promoting labor rights, human rights and environmental protections. The Office of the U.S. Trade Representative did not respond to a question on the administration's position on the amendment by press time.

But National Foreign Trade Council President Bill Reinsch told reporters on Friday (April 24) that the administration is worried about the amendment, as are business groups, who view it as gumming up the process of TPA passage. Reinsch said Malaysia had also expressed worries about the amendment.

He said business groups will support an amendment to strip the Menendez provision that they expect to be offered on the Senate floor. He speculated that such an amendment could be offered by the leaders of the Finance Committee. Finance Committee Chairman Orrin Hatch (R-UT) voted against the amendment in committee, while Ranking Member Ron Wyden (D-OR) initially voted against it but later changed his vote to “yes” after the amendment passed.

Reinsch described the amendment as a “classic poison pill” because its effect seems to be to kill the TPP agreement.

NFTC Vice President Dan O'Flaherty told reporters that the State Department has indicated Malaysia's classification in the most egregious “Tier III” category is likely to be maintained in the next version of the human trafficking report due out in June.

At the Ways & Means markup, Ryan said there had been no agreement to include the Menendez amendment by "all parties" involved in the TPA negotiations because it "adds more complications" than the drafters of the amendment had originally anticipated.

Earlier in the markup, in response to a question from Rep. Charles Rangel (D-NY) on the germaneness of the Israel provisions and thus the chairman's amendment in general, Ryan said that his amendment had been agreed upon with the administration and on a “bipartisan, bicameral basis” between the leaders of the two Congressional committees of jurisdiction who co-sponsored the TPA bill.

The Ryan amendment, consisting of the human rights negotiating objective and the Israel provision, was adopted by voice vote shortly before the committee voted to favorably report the TPA bill by a 25-13 vote. A Ryan spokesman described the amendment as "conforming to two changes" Finance made in its markup.

 When asked, the Ryan spokesman said the method for working out the differences had not yet been determined.


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