STATUS: VICTORY!
Just before recess,
both houses of Congress passed an omnibus trade bill that included the
renewal of trade promotion authority (TPA), which President Bush signed
into law on August 5. Business pulled out all the stops to put TPA over
the top; labor unions did everything they could to stop it. The margin
of victory on this key vote was remarkably close in the House, 215-212.
The Senate cleared it by a comfortable 64-34. The few concessions made
during the conference committee did nothing to lessen the importance
of renewing TPA. The president can once again negotiate trade agreements
with other countries with the assurance that they will get an up-or-down
vote in Congress once completed. The United States can once again assume
a leading role in breaking down trade barriers around the world. (August
9, 2002 - Congressional Action, US Chamber)
STATUS: Senate
passes TPA - on to conference with House!
After weeks of debate
the Senate voted decisively, 66-30, in favor of TPA. Now the measure
moves to conference with the House, where ironing out the differences
could prove difficult. Before passing its version the Senate added two
provisions that trouble many House supporters. One, which would give
Congress the ability to amend trade agreements if they change existing
trade 'remedy' laws (antidumping, countervailing duties and other protections),
prompted a veto threat from the administration. Majority Leader Daschle
(D-SD) said he could support TPA without this provision, and it will
almost certainly be stripped out in conference. The other Senate addition,
covering Trade Adjustment Assistance (TAA), will be harder to deal with.
It would provide a 70% health insurance tax credit for workers displaced
by trade, a costly new benefit that fiscal conservatives in the House
don't like. But Senate Democrats are adamant that it must be part of
the final package. Given that TPA passed the House last year by just
one vote, not one House vote can be lost in making changes to satisfy
the Senate.
TPA would assure
our trading partners that if they reach an agreement with the United
States it will get a straight up-or-down vote in Congress and not be
subject to amendments that could kill the deal. We've fallen far behind
other trading countries in reaching market-opening agreements because
they don't want to negotiate with us without TPA.
(From Congressional
Action by US Chamber, May 30, 2002)
Summary:
The yearlong push
for TPA culminated in a stunning 215-214 win on the House floor last
month. The Senate will vote this year, and it should go easier than
in the House if it doesn't get tied up in other issues. The House bill
would guarantee our trading partners that agreements they negotiate
with our president would get a straight up-or-down vote in Congress
and not be amended, which could force difficult renegotiation. Other
countries would be more willing to deal with the United States with
TPA in place. The president needs TPA to help us knock down foreign
barriers to American exports of goods and services. TPA is also important
as we head into the new round of global trade negotiations launched
by the WTO in Doha, Qatar last fall. (Update provided by US Chamber
of Commerce)
The El Segundo Chamber
published the following letter supporting Trade Promotion Authority
and continues to campaign for its passage. The House approved TPA legislation
by a vote of 215-214 on December 6, 2001. The legislation will now head
to the Senate for consideration. Finance Committee chairman Max Baucus
(D-MT) has indicated that he will conduct a markup of TPA legislation
next week, although it appears unlikely that the full Senate will consider
the bill before Congress adjourns for the year. Nonetheless, this victory
should clear the way for final passage of TPA legislation early next
year.
October 25, 2001
The Honorable Jane Harman
U.S. House of Representatives
811 Catalina Avenue, Suite 1302
Redondo Beach, CA 90277
Dear Congresswoman
Harman:
We are following
up on our letter to you of August 31, 2001. The El Segundo Chamber of
Commerce is writing to ask you for your support of the Trade Promotion
Authority (TPA), which we understand is to be voted on within the
next week or two.
There are close
to 300 manufacturing businesses in El Segundo. International trade impacts
many of these businesses, as well as those in other industries. Our
businesses need the passage of TPA to generate future growth prospects,
level the global playing field, and promote their ability to sell in
world markets.
While foreign imports
face close to a 4% tariff when coming into the U.S., our businesses
exporting to key markets in Asia and South America frequently have to
pay upward of 20-30% duties. The President needs the authority to negotiate
agreements that will get these foreign barriers down.
The continued growth
of international trade is vital to the economic well being of our region.
The El Segundo Chamber therefore supports renewal of TPA as a way to
allow the United States to be an active participant in upcoming bi-lateral
and multi-lateral trade liberalization negotiations.
Please lend your
support to TPA.
Sincerely,
Liz West
President
El Segundo Chamber of Commerce