[CTC] Democrats and Republicans are prepping for a trade standoff

[Arthur Stamoulis]

Politico Morning Trade

— Democrats and Republicans are prepping for a trade standoff that could torpedo any hope of reviving tariff exemption programs before the end of the year. ...

CONGRESS PLAYS CHICKEN OVER THE LAME DUCK: Lawmakers on the House and Senate committees in charge of trade are laying the groundwork for a grueling standoff <https://go.politicoemail.com/?qs=6bb962140593cec7bd6b8967c3e615807aa4466e83fbdb7b3ac78e068ba7179d1983f800864db7db4579998a94946702> during the upcoming lame-duck session, potentially thwarting any effort to revive trade programs that otherwise have support in both parties.

Rep. Earl Blumenauer <https://go.politicoemail.com/?qs=6bb962140593cec7c099796f0b4eb21547b85209914e61b9d6a9d5809053f94e4977f1e8db5d1cb82aa305d0cc7a8cc3> (D-Ore.), the chairman of the Ways and Means trade subcommittee, is urging his colleagues to reject any lame-duck trade package that does not revive Trade Adjustment Assistance, a program that helps workers who lost their jobs over import competition. “A trade package that does not renew TAA is unacceptable,” he told POLITICO.

Senate Finance Chair Ron Wyden <https://go.politicoemail.com/?qs=6bb962140593cec705fc1fd7ded12d560c897591d376824c7c9e11a85a01990e45665f271927b1d219f10ac96a3f72ef> (D-Ore.) echoed the sentiment, and said reauthorizing and modernizing Trade Adjustment Assistance, which expired in July, “is a top priority for me and many members of Congress.”

But the GOP is fighting back: Republican representatives are drawing their own lines in the sand over any lame-duck trade package and refuse to consider TAA revival unless it is reviewed alongside Trade Promotion Authority, which the GOP has signaled it will use to nudge the executive branch toward considering new free trade agreements. That is, frankly, a longshot.

The standoff could torpedo the revival of any expired trade programs until after the end of the year, including the Generalized System Preferences and the Miscellaneous Tariff Bill. Industry groups and lawmakers from both parties want to see the tariff exception programs brought back.

Dems setting the table: Blumenauer said his office already compiled a comprehensive trade bill that’s ready for lame-duck negotiations. The package includes a seven-year renewal of the TAA, as well as Republican-opposed versions of the GSP and MTB that would tighten up labor, governance and other standards countries need to qualify for the tariff exception.

Nebraska Rep. Adrian Smith <https://go.politicoemail.com/?qs=6bb962140593cec7bcd543cb8fb8b9639b20e8ff8d21f0972c0855961e6952e216cb2001627d7d23059d5709dfcef86d> , the top Republican on the Ways and Means trade subcommittee, told POLITICO that historically “we’ve reauthorized TAA in tandem with increased market access, specifically TPA, and that is not something we should deviate from.”

“Stand-alone TAA is not something I would support — nor do I think pairing it with only GSP and MTB is acceptable considering those reauthorizations are not at all contentious,” he added.

Clock is ticking: The Department of Labor recently announced the reassignment of 16 federal employees, signaling instability of the program’s bureaucracy, according to persons familiar.


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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