[CTC] Tai calls for "worker-centered" trade; Rep Murphy calls for TPP revival; Trumka calls for pause

[Arthur Stamoulis]

Politico Morning Trade

TAI CALLS FOR TRADE TO PRIORITIZE US WORKERS: Biden’s pick for U.S. trade representative said the administration will pursue a “worker-centered” trade policy in a speech to industry officials on Tuesday.

“What this means in practice is U.S. trade policy must benefit regular Americans, communities and workers,” Tai told a virtual meeting held by the National Foreign Trade Council. “That starts with recognition that people are not just consumers. They are also workers and wage earners.”

The brief speech, just more than 6 minutes long, hit on many of the same themes Tai mentioned in her unveiling speech as the USTR pick, where she pledged to try to make trade a “force for good.” <https://go.politicoemail.com/?qs=f5ce4d80adebef264500284c81f8d76085945ce81ce977f13b8cb930c76db741d27ab53d20bf4d72e6f1cefe9749464b>
Trade paradigm shifted: But the remarks also hammered home a paradigm shift in how many in Washington view global trade policy since the days of global liberalization in the 1990s and 2000s.

While the Trump and Biden administrations diverge on many trade policies, they appear united in their skepticism that trade liberalization — removing tariffs, worker protections and other regulations — generally benefits everyone.

A rising tide raises all boats? That free-trading paradigm is based on the idea that liberalization would lower the cost of all traded goods, giving most everyday consumers more purchasing power even if some lose their jobs as industries relocate.

Now, both Tai and her predecessor, USTR Robert Lighthizer, seem to reject that paradigm. During his term, Lighthizer was fond of illustrating the point by saying it’s fine if U.S. consumers pay a “nickel” more for a T-shirt, if that means those jobs stay in America.

Of course, the paradigm shift does not represent a complete consensus. Many in Washington still adhere to a free trading economic agenda, and the Biden administration’s rhetorical focus on workers will be tested by the demands of industry, members of Congress and trade partners.

MURPHY CALLS FOR NEW TPP-STYLE TALKS: One lawmaker made Biden’s conundrum clear immediately. After Tai spoke, Rep. Stephanie Murphy, jumped on the next NFTC panel and said Biden should consider restarting talks on a TPP-style trade deal in Asia.

“If we’re serious about competing with China in Asia,” Murphy said, “the Biden administration needs to reconsider TPP or something else along those lines and we owe the country debate on this issue that is transparent.”

The Trump administration’s withdrawal from the deal was an “economic and geostrategic mistake,” she added.

Murphy’s one of the more pro-trade members of the House Ways and Means Committee, and her remarks are the strongest yet from a member of that panel on TPP, which became unpopular among voters in both parties after the Obama administration negotiated it.

TRUMKA URGES PAUSE ON NEW TRADE DEALS <https://go.politicoemail.com/?qs=f5ce4d80adebef268119cff6e6a90d2b2d69f3aca166df17b2d777f48e0e6e99cbf440d7e9351b93fcfd9632d11fd00a>: The head of the AFL-CIO on Tuesday said the Biden administration should “hit the pause button for a while” on trade deal negotiations, aligning with the incoming president’s commitments during the campaign <https://go.politicoemail.com/?qs=f5ce4d80adebef261a3bfd12384279b85065c200fe5cf206b3c3441f5d29c2fa58c6712d658eb685b317f2db091f0187>. 

Trumka's comments put pressure on Biden to maintain that course, despite pressure he’s already getting from U.S. business and foreign governments to negotiate new trade deals and roll back President Donald Trump’s tariffs. 

Trumka also said Trump’s tariffs on steel and aluminum should remain “until a long-term enforceable solution is in place" to deal with Chinese government subsidies that have led to massive steel overcapacity in that country, he said. The United Steelworkers previously said the same <https://go.politicoemail.com/?qs=f5ce4d80adebef26c0400c14f86411a24a313918dca2edccae94012490440e675947a2a962e65eb0d4571959df76918c>.

Mexico labor complaint coming: Trumka reiterated the AFL-CIO will file the first-ever formal labor complaint against Mexico under the terms of the new U.S.-Mexico-Canada Agreement “very quickly” after Biden is inaugurated.

“We had some real resistance from the old administration on the thing and we became worried that they would tank it," Trumka said. "And the pandemic made it more difficult to get facts, supporting facts, than we had originally anticipated."


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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