[CTC] House Democrats Slam US-Brazil Mini Trade Deal

[Arthur Stamoulis]

Politico Morning Trade

— House Democrats slammed the Trump administration’s new mini trade deal with Brazil, accusing USTR of circumventing Congress to reward a “pseudo-dictator.”

HOUSE DEMOCRATS SLAM U.S.-BRAZIL MINI TRADE DEAL: <https://go.politicoemail.com/?qs=e323e0630aefe2d954c82e8d85571622ab11f73dbae4a0ef4bf56de27bd144f75544186e4ca33b9a0ce79820d888298b>House Ways and Means Chairman Richard Neal  <https://go.politicoemail.com/?qs=e323e0630aefe2d9c4114eaf1620596046d59851a0f6a294051126edaecdde9dba0890f2792b124c39717cfe260bd3bc>(D-Mass.) on Monday called the Trump administration’s new mini trade deal with Brazil an affront to Congress and a blow to U.S. moral leadership.

“With this trade deal, the Trump Administration has circumvented Congress to reward a Brazilian administration that lacks respect for basic human rights, the environment, and its own workers,” Neal said in a statement. “Giving President [Jair] Bolsonaro ammunition to claim that the United States endorses his behavior sullies our nation’s reputation as a country that demands our trade partners respect human rights and the rule of law.”

Rep. Earl Blumenauer <https://go.politicoemail.com/?qs=e323e0630aefe2d9128c3e2a16782dfae5fb10778ac0399af08e81da6f3ea0c1fd0c1c0ca98795ffa14574819338ad7d> (D-Ore.), who chairs the Ways and Means Trade Subcommittee, also tore into the administration for ignoring Democratic concerns about negotiating with Brazil under Bolsonaro’s leadership.

“The USTR’s actions today are not just a slap in the face to lawmakers who have outlined these concerns, but it’s a bad deal for the U.S.,” Blumenauer said. “While we get minimal, unenforceable trade facilitation measures with a pseudo-dictator, Bolsonaro gets legitimacy and the ability to tout a closer relationship with the most powerful nation in the world.”

The 2015 trade promotion authority law requires the White House to submit trade agreements to Congress for a straight up-or-down vote with any amendment.

However, U.S. Trade Representative Robert Lighthizer has sidestepped that requirement by negotiating mini deals with China, Japan and now Brazil that do not require any changes in U.S. law, but give President Donald Trump a political victory to brag about. 

Blumenauer warned Congress may need to rethink the 2015 law, which expires on July 1 of next year, to create “a rebalancing of delegated powers.”

What happened : The harsh criticism came after U.S. and Brazilian officials announced a small package of deals <https://go.politicoemail.com/?qs=e323e0630aefe2d9b2ba13ce8f4d8319d7781ca3579bc2ab4b030d2c6a97a609fa54b6b7d31972d8e6361130b41129fe> covering customs issues, best regulatory practices and anti-corruption.

Those three pacts “establish common standards for the two countries on efficient customs procedures, transparent regulatory development and robust anti-corruption policies that will create a strong foundation for closer economic ties between our two countries,” Lighthizer said in a statement  <https://go.politicoemail.com/?qs=e323e0630aefe2d9d64f6a85ffdfbd712945cbf694d1e0e9b4c29f7290d36fe02a0a7703fa2de4ae69640adbb8bda647>.

White House national security adviser Robert O’Brien, who is in Brazil to meet with Bolsonaro and other officials, also said the two countries “hope to sign additional agreements soon” in areas such as digital trade and intellectual property. 

Unanswered questions: Both Bolsonaro and O’Brien, at separate events, also talked about negotiating a broader agreement. But it’s not clear whether that pact would be a free trade agreement that comes before Congress for a vote.

Lighthizer and chief White House economic adviser Larry Kudlow have the opportunity to explain the administration’s plans today at a U.S. Chamber of Commerce event, where they will be interviewed by Myron Brilliant, the business group’s executive vice president and head of international affairs.



Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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