THE TTALK QUOTES

On Global Trade & Investment

Published Three Times a Week By

The Global Business Dialogue, Inc.

Washington, DC Tel: 202-463-5074

Email: Comments@gbdinc.org

No. 33 of 2015

WEDNESDAY, MAY 6, 2015

Filed from Washington, DC

TPA - BLUEPRINT OR FICTION

"The idea that fast track lets Congress set the standards and goals for the TPP is a fiction - the agreement has been under negotiation for more than five years and is essentially complete."

Richard Trumka
April 21, 2015

CONTEXT

There were just two witnesses at the Senate Finance Committee's trade hearing on April 21. Richard Trumka, president of the AFL-CIO was one of them. The other was Tom Donohue, president and CEO of the U.S. Chamber of Commerce. Mr. Donohue is a strong supporter of both Trade Promotion Authority, TPA, and the Trans-Pacific Partnership agreement, TPP. Mr. Trumka is not.

Today's featured quote underscores his and the AFL-CIO's essential criticism of the link between these two initiatives. The paragraph that makes this point continues as follows:

"Congress cannot set meaningful negotiating objectives in a fast track bill if the Administration has already negotiated most of the key provisions. And Congress will [have] lost crucial leverage over any few remaining provisions by agreeing to fast track at this late date."

COMMENT

Mr. Trumka's testimony was nuanced and important. You will want to read it for yourself if you haven't already. (Just click the link below under Sources.) For us, there were elements with which we simply do not agree, such as the insistence on unrealistically strong language on currency valuations. And there were passages with which we strongly agree, as when he argued that "Trade is not a substitute for investing in our own future," and emphasized the need to upgrade U.S. ports along with other infrastructure investments.

It is the basic argument of the featured quote, however, that particularly calls out to be addressed. We would agree that Congress should have acted on Trade Promotion Authority much earlier, but for the last several years it - especially the Senate - seemed pointedly disinclined to do so. And we are not aware of the AFL-CIO speaking so forcefully on the subject when the Senate was controlled by the Democrats. That's a matter for further research.

Congress does need to assert itself more where trade is concerned. TPA is the way to do that. And while the logic of Mr. Trumka's argument is in a sense compelling, so too is the counter argument: better late than never. And Congress does now seem prepared to move on TPA.

The critical question is whether Mr. Trumka was right that Congress would have more leverage in TPP if it did not act on TPA. We doubt that. If TPP were an agreement with a single country, that might be the case. But it is an agreement among 12, and it seems unlikely that Congress would be able to force renegotiations on such a large scale. Rather its leverage lies in a clear statement of Congressional objectives now. That's for TPP.

As for other agreements, notably the Transatlantic Trade and Investment Partnership, they are still at an early stage, and the provisions of a TPA bill, including the consultation provisions, will significantly inform and structure those talks.

RELATED EVENT

On May 8, GBD's Gave Day 2015 will be held from 12 noon to 2 p.m. at the St. Regis Hotel in Washington. The centerpiece of that event will be a discussion of Trade Promotion Authority with key staff from the House Ways and Means and Senate Finance Committees. If you're going to be in Washington on Friday, you should be at the GBD lunch. Click the title link for registration options and other details.

SOURCES & LINKS

Mr. Trumka's Testimony takes you to the written testimony of AFL-CIO President Richard Trumka at the Senate Finance Committee's trade hearing on April 21, 2015.

Time for a New Track is a statement from the AFL-CIO, with specific suggestions from Labor on Congress should approach trade agreements. The paper was referenced by Mr. Trumka in his testimony last month before the Senate Finance Committee. In that appearance Mr. Trumka expressed his frustration over the fact that the current Trade Promotion Authority legislation does not include

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R. K. Morris, Editor