[CTC] Senate reversal opens debate on key trade bill

[Arthur Stamoulis]

http://www.politico.com/story/2015/05/senate-reversal-debate-on-trade-bill-117963.html?hp=lc3_4

Senate reversal opens debate on key trade bill
By DOUG PALMER <http://www.politico.com/reporters/DougPalmer.html> 5/14/15 2:38 PM EDT Updated 5/14/15 4:45 PM EDT
The Senate voted Thursday to start debate on key trade legislation to “fast-track” a landmark Asia-Pacific free trade deal, reversing an embarrassing setback for President Barack Obama earlier this week and setting the stage for approval of the bill as soon as Memorial Day.

“It’s been years, decades even, since we’ve had a real debate over U.S. trade policy on the Senate floor,” Senate Finance Committee Chairman Orrin Hatch said. “And I’m quite certain that we’ve got a spirited debate ahead of all us.”

With the help of 13 Democrats, Senate Republicans overcame opposition from Senate Minority Leader Harry Reid and began consideration of the trade promotion authority legislation, which would allow Obama to submit the Trans-Pacific Partnership agreement to Congress for straight up-or-down votes without any amendments.

The bill is packaged with a renewal of Trade Adjustment Assistance, a federal program dating to the 1960s that helps retrain workers who have lost their jobs because of import competition or companies moving production overseas. That program is opposed by many Republicans, who consider it ineffective. Still, none of the 52 Republicans who voted Thursday opposed moving the package, bringing the final tally to 65-33.

“There are many members on my side of the aisle who have real reservations about TAA,” Senate Majority Leader Mitch McConnell said. “I do as well. But I expect that at the end of this process, after the Senate works its will, that TAA will be a part of the package the Senate sends to the House.”

Ohio Democrat Sen. Sherrod Brown has argued it would be “morally reprehensible” to pass the fast-track bill without renewing the aid program for displaced workers, especially in the face of White House plans to complete talks this year on the trade deal with Japan and 10 other countries in the Asia-Pacific region.

That would be the world’s largest free trade agreement, covering about 40 percent of world economic output. Despite White House promises that it will be the “most progressive” trade deal in history in terms of protections for workers and the environment, critics ranging from the AFL-CIO to the Sierra Club are unconvinced.

Sen. Elizabeth Warren, a favorite of progressive Democrats, also has taken aim at a controversial provision of trade agreements that allows companies to sue free trade partner countries over government actions that hurt the value of investments. The liberal firebrand is expected to offer an amendment to keep the investor dispute clause out of the trade agreement.

Other amendments to strengthen the workers aid program, protect “Buy America” laws, attack foreign currency manipulation and deal with human trafficking are expected during the upcoming debate.

On the last issue, Republican leaders are looking for ways to modify a provision added to the bill during Senate Finance Committee consideration that would strip fast-track protections from trade agreements with any country ranked as doing too little to curb the problem in the State Department’s annual human trafficking report. Malaysia, one of the 12 Pacific Rim countries in the trade deal, made the list last year, potentially endangering fast-track protections for the entire pact.
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EDWARD-ISAAC DOVERE <http://www.politico.com/reporters/Edward-IsaacDovere.html>
The expected flurry of politically difficult amendments could prevent the Senate from finishing the bill before it recesses on May 22 for a weeklong post-Memorial Day break, Senate Republican Conference Chairman John Thune told reporters.

“Ideally, it would be really great to put this one up on the scoreboard before Memorial Day and then to be able to have the House act on it when they come back,” the South Dakota senator said. “I think it’s going to depend entirely on the amendment process — how lengthy that becomes and how exhaustive that becomes. … I think it’s an open question at this point.”

Just two days ago, Reid rallied the support of all but one Democrat — Sen. Tom Carper of Delaware — to block consideration of the fast-track bill because of fears that Republicans would abandon a related measure to strengthen the enforcement of U.S. trade laws that was not included in the trade promotion authority package.
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The enforcement bill is not particularly controversial, but it contains a provision aimed at China and opposed by the White House that would allow duties on goods from countries that undervalue their currency for a trade advantage. Administration officials fear the anti-currency manipulation language would invite retaliation, violate global trade rules and undermine diplomatic efforts to persuade Beijing to move to a more market-oriented exchange rate.

Republicans said it was never their intention to abandon the legislation, but they ultimately reached a deal with Democrats that led to passage of the customs and enforcement bill and a separate trade package for Africa, Haiti and other developing countries earlier Thursday. However, it’s unlikely the currency provision will survive in the final package that goes to Obama for his signature since Republican leaders, including Ways and Means Committee Chairman Paul Ryan of Wisconsin, also oppose the measure.

The vote to open debate on the fast-track bill is an early sign of support for the trade legislation, which faces several more obstacles to become law. Those include overcoming another 60-vote hurdle to win Senate passage and an expected close vote in the House, where the majority of Democrats oppose giving Obama the authority to bring the Asia-Pacific trade deal and a sizable number of conservative Republicans could balk at giving their key adversary a major legislative victory.
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LAUREN FRENCH <http://www.politico.com/reporters/LaurenFrench.html>, BURGESS EVERETT <http://www.politico.com/reporters/BurgessEverett.html> and JOHN BRESNAHAN <http://www.politico.com/reporters/JohnBresnahan.html>
Talks on the trade deal are already well into their fifth year, making it one of the longest U.S. trade negotiations in history. U.S. Trade Representative Michael Froman declared the talks were in the “end game” as long ago as late 2013, but the lack of trade promotion authority has prevented countries from finishing the deal.

Proponents say fast track is needed because it’s too hard for the United States, Japan, Vietnam and other TPP countries to make the final politically difficult concessions to reach an agreement if Congress can change the final deal. But critics say the prohibition against amendments is undemocratic and undermines Congress’ constitutional jurisdiction over trade.

The fast-track legislation also lays down negotiating objectives for the White House to follow in areas ranging from agriculture and manufacturing to labor and the environment. Most of those are in line with what the administration has already pursued with the countries in the trade deal, but opponents question the significance of giving the White House marching orders for an agreement that is almost complete.

Still, the legislation would last for six years and is the first expression of congressional trade priorities since the last fast-track bill was passed in 2002, during the administration of George W. Bush. It addresses a number of new areas like digital trade barriers and competition from foreign state-owned enterprises that weren’t major issues then.

Obama, or whoever is the next president, could also use the legislation to win approval of the proposed Transatlantic Trade and Investment Partnership, a proposed free trade agreement between the United States and the 28-nation European Union that would be even larger than the TPP pact.

The U.S. and EU hope for a deal before Obama leaves office, but failure to pass fast-track would be a blow for those talks as well as other negotiations, including the 14-year-old Doha round of world trade talks.


Read more: http://www.politico.com/story/2015/05/senate-reversal-debate-on-trade-bill-117963.html#ixzz3a9xHTml7 <http://www.politico.com/story/2015/05/senate-reversal-debate-on-trade-bill-117963.html#ixzz3a9xHTml7>
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