President Loses Fast Track Negotiating Authority

By James A. Morrissey, Washington Correspondent

When Congress permitted the president’s trade promotion authority (TPA) to elapse on June 30, a number of textile-related trade pacts managed to meet the deadline for consideration under the expedited congressional review process known as fast track.

Textile and other manufacturing representatives in Washington hailed the demise of TPA, while administration trade officials and textile importers called for its renewal. The Democratic leadership in the House of Representatives, however, said flatly that, “our legislative priorities do not include the renewal of fast track authority.”

As the deadline for renewal passed, US Trade Representative Susan C. Schwab called for renewal of the authority, saying that the United States needs to remain open for business to the 95 percent of the world’s consumers living outside the United States. “We cannot afford to hang up a closed for business sign,” Schwab said. She warned that other countries are engaged in free trade agreements, and the United States cannot afford to be left out. She expressed the hope that TPA will be renewed quickly so the United States can continue to be at the negotiating table.

House Speaker Nancy Pelosi, D-Calif., joined with Majority leader Steny Hoyer, D-Md., Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Trade Subcommittee Chairman Sander Levin, D-Mich., in releasing a detailed discussion of FTAs and overall trade policy. They said before debate on TPA can continue, “We must expand the benefits of globalization to all Americans.”

They said they plan to move forward in the near future with legislation to address the growing trade deficit with China and measures that will strengthen overall enforcement of US trade laws. With respect to pending FTAs , they were highly critical of a FTA with South Korea, which was renegotiated last week just in time to meet the fast track deadline. Although an attempt was made to quiet some of the opposition to the pact, the House leaders said they cannot support the agreement, claiming it “reflects the deep seated and fundamental problems in market access and a heavily one-sided trading relationship.” Textile industry representatives in Washington have expressed their “deep concern” over the South Korean agreement, because they believe it will result on more of the one-sided trade that today favors South Korea. Although details of the revised agreement have not been made public, it is unlikely that any significant changes were made in the textile and apparel provisions agreed to last May.

With respect to other FTAs that met the deadline, it is likely the agreement with Panama has free sailing, an agreement with Peru has strong support in the Congress; and while an agreement with Colombia has considerable support, there are some deep-seated concerns about violence in that country, including attacks on labor leaders. The Democratic leadership statement said: “Issues of this nature cannot be solely resolved through language of an FTA, and as a result we cannot support it at this time.” The National Council of Textile Organizations supports the Panama, Peru and Colombian FTAs.

As the deadline for renewal of TPA passed, industry lobbyists on both sides of import issues were quick to chime in on the demise of the president’s trade promotion authority. The American Manufacturing Trade Action Coalition (AMTAC) said “good riddance” as it claimed TPA was responsible for “massive manufacturing job losses.” AMTAC’s Executive Director Auggie Tantillo said: “TPA has been a blank check used to fast track the off-shoring of entire US industries that had to stop.” He charged that TPA has been a way for Congress to “pass the buck” to avoid accountability. He said that with the demise of TPA, Congress must reassert itself in the policy-making process.

The US Business and Industry Council said the expiration of TPA is a “major victory for domestic producers and an essential step toward developing new US trade policies that promote a healthier growth for America and the world.”

On the other hand, the National Association of Manufacturers’ President John Engler compared killing TPA to “locking the door and throwing away to key to any future trade agreements.” He was joined by importers, including the American Apparel and Footwear Association, whose President Kevin Burke called for renewal of the authority in order to provide greater access to foreign markets for US manufacturers and a more inexpensive selection of consumer goods in the United States.