With the passage last Friday of trade promotion authority (TPA) legislation by the U.S. Senate, the trade policy focus now shifts to the U.S. House of Representatives. No schedule has been announced yet for House action on TPA, though vigorous debate and ultimately a close vote are expected.
“The Senate’s action is important progress but there is more work to do,� said U.S. Grains Council (USGC) Chairman Ron Gray. “TPA is an essential tool for achieving progress on the Trans-Pacific Partnership (TPP) and other trade agreements that can give U.S. farmers additional market access.�
The TPP countries, which include the United States, Japan, Canada and Mexico, account for about 40 percent of world exports. An ongoing trade negotiation between the United States and European Union could also benefit from TPA, opening that market to new sales.
TPA legislation is intended to set Congressional priorities for negotiators and provide for regular consultation between negotiators and Congress. It would also establish a time-bound approval process in which Congress would vote up-or-down on a proposed agreement as a comprehensive package, without amendment.
“TPA has been used by presidents of both parties since the 1970s,� said Floyd Gaibler, USGC director of trade policy and biotechnology. “In complex, multilateral negotiations, it is important that negotiators have assurance that their work will not be picked apart by unilateral amendments by the various legislatures of the participating countries. An up-or-down vote on the full package is one of the keys to getting to a deal.�
The Council participates actively with grower organizations, industry coalitions and consultative groups working in support of TPA and TPP to provide historical and from-the-ground information about the impact of trade policy on export sales.