Despite a contingent of Democrats balking at President Barack Obama’s assertions that Trade Promotion Authority (TPA) will bring more jobs to the U.S., the Senate floor decided to give the commander in chief fast track authorization by a fairly wide margin on Thursday.
In a vote of 62 in favor and 38 against, TPA was passed on May 22, ending what has been a lengthy period of debate over whether the controversial measure should be reinstituted. Fast track enables the president to negotiate trade agreements with other national heads of state. When TPA is implemented, it prevents Congress from changing the structure of a trade deal’s framework through amendments.
This puts TPA one step closer to being implemented and also effectuate the Trans-Pacific Partnership, a free-trade agreement that’s involved 11 other Pacific rim nations, predominantly in South Asia.
Though considered a key hurdle that’s been cleared, fast track has a ways to go before it becomes the law of the land, noted Wisconsin Sen. Ron Kind, who has broken ranks with fellow Democrats and is a supporter of TPA.
“We understand we’ve got work to do,” Kind said following the vote, according to The New York Times. Kind was one of 12 other Democrats who aligned with Republicans in supporting the negotiation measure.
Obama himself lauded the decision that was rendered, calling it a “big step forward … on a trade agenda that is consistent with strong labor standards, environmental standards and access to markets that too often are closed even as these other countries are selling goods in the United States.” He also indicated that TPA is good for small and large businesses as well as the average American worker.
Exports major contributor to U.S. GDP
Though opponents of fast track authority say otherwise, proponents indicate that TPA makes the domestic economy more vibrant. According to the U.S. Trade Representative (USTR), exports have accounted for one-third of the U.S.’ gross domestic product (GDP) in the last six years. Additionally, the trade agreements that are being ironed out – such as the Transatlantic Trade and Investment Partnership (TTIP) and TPP – comprise nearly two-thirds of the world’s goods and services.
Further Senate debate ahead
Even though fast track garnered the requisite number of votes, it still has more hoops to jump through before it can move on to the U.S. House of Representatives, where its fate remains uncertain. These include provisos that Democrats – led by Massachusetts Sen. Elizabeth Warren – want as preconditions to TPA’s implementation. For instance, Warren has sponsored an amendment that requires trade agreements to set up a system that prevents currency rates from being manipulated. Should this amendment be adopted, the Senate would then have to vote again on the agreement because its structure has changed, which could imperil how it will fare when it reaches the House.
Though TPA detractors say that the measure gives the president too much authority, supporters counter by pointing out that many presidents have served with it in effect. Wisconsin Rep. Paul Ryan told CNN’s “State of the Union” that every president since Franklin Delano Roosevelt has had TPA. According to fact-checking website Politifact, every president save for Richard Nixon has been able to negotiate deal with powers similar to TPA since the 1930s, but because there is more congressional oversight today versus then, the degree of authority has changed over the years. In other words, it’s not an apples to apples comparison.
Many organizations are in favor of fast track, including the National Association of Manufacturers. Linda Dempsey, NAM president, recently stated that TPA gives manufacturers’ and businesses’ access to where most of the world’s purchasing power is.
The Senate will resume debate on TPA after the Memorial Day recess.