[CTC] House Ways & Means Democrats: IPEF requires congressional approval

[Arthur Stamoulis]

*House Ways & Means Democrats: IPEF requires congressional approval*


Inside US Trade, 12/19/22



A day after Senate Finance Committee members sent a letter to President
Biden asserting that the Indo-Pacific Economic Framework for Prosperity
required congressional approval, 12 Democrats on the House Ways & Means
Committee quietly echoed their colleagues’ message just ahead of the first
in-person IPEF negotiating round.


House Ways & Means trade subcommittee Chair Earl Blumenauer (OR) led a Dec.
2 letter to Biden contending the administration was overstepping its
authority by negotiating trade agreements, like IPEF, without seeking
congressional approval. The letter, obtained by Inside U.S. Trade, was sent
as well to U.S. Trade Representative Katherine Tai, Commerce Secretary Gina
Raimondo and White House National Security Adviser Jake Sullivan.


The senders did not publicize the letter.


IPEF, along with the Americas Partnership for Economic Prosperity, “raise
potential concerns about the encroachment on Congress’ authority over the
regulation of foreign commerce,” the lawmakers wrote. “To the extent the
Administration is seeking to conclude a trade agreement with binding
commitments or add new countries to an existing agreement or initiative,
congressional approval is necessary.”


Administration officials have contended that the negotiations do not
require new legislation. The administration does not intend to submit
either deal to Congress for approval. USTR has, however, said repeatedly
that it has and will continue to engage often and meaningfully with
lawmakers on both.


Other signatories on the letter included House Ways & Means oversight
subcommittee Chair Bill Pascrell (NJ) as well as Ways & Means members Lloyd
Doggett (TX), John Larson (CT), Danny Davis (IL), Linda Sanchez (CA), Brian
Higgins (NY), Judy Chu (CA), Gwen Moore (WI), Dan Kildee (MI), Dwight Evans
(PA) and Jimmy Gomez (CA).

In-person negotiations on IPEF, which is expected to include binding
commitments, kicked off on Dec. 10 in Brisbane, Australia. During the
round, U.S. negotiators from USTR and Commerce walked delegates from the 13
other member countries through several draft texts on a range of issues.
Members also discussed Canada’s bid to join the framework, according to a
report by Kyodo News.

According to USTR and Commerce, staff from the Senate Finance and House
Ways & Means committees traveled to Brisbane and were briefed by U.S.
officials on the ongoing talks.

In their letter, the House lawmakers contend that Congress’ “constitutional
prerogative over international trade” is not determined by the “presence or
absence of trade-liberalizing measures in an agreement." Instead, they
wrote, “the Constitution provides Congress with broad authority to regulate
tariff and non-tariff aspects of commerce with foreign nations."

The argument echoes the one made by the leaders and most members of the
Senate Finance Committee in their Dec. 1 letter to Biden.

The Biden administration has not expressed interested in pursuing new
market-access commitments via IPEF, APEP or other trade arrangements.

The House members touted several trade measures as examples of bipartisan
congressional efforts in recent years, citing the administration’s use of
the rapid-response mechanism in the U.S.-Mexico-Canada Agreement, Section
307 of the of the Tariff Act of 1930 to address forced labor and the Uyghur
Force Labor Prevention Act.

They add that they “stand ready” to work with the administration on a
“proactive trade agenda” -- and contend that congressional participation
was essential to ensure that “the voices and needs of diverse
constituencies and communities are heard and met, and that these policies
last.”

“To that end, we expect that in the IPEF, APEP, and any other trade
agreement negotiation your administration engages in will respect the
Constitutional delineation of power over trade policy making and seek
formal congressional approval before concluding a trade agreement with
binding commitments,” the lawmakers added.

In a statement to Inside U.S. Trade in response to the letter earlier this
month from the Senate group, USTR said “The Biden Administration takes its
commitment to transparency seriously and respects the role Congress plays
in the development and implementation of U.S. trade policy. Even before the
IPEF was launched in May 2022, this administration held briefings with
Members of Congress and relevant committee staff to provide updates and
solicit feedback. We will continue to hold briefings and share information
as negotiations continue.”

The White House did not respond immediately to a request for comment on the
House Democrats’ letter.


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826
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