TPP debate in Congress will be intense, political
Trans-Pacific Partnership trade agreement negotiations took more than five grueling years, but that won’t matter one whit when Congress begins the process of voting on the pact. Congressional review promises to be contentious because Republicans and Democrats on Capitol Hill already have expressed their opposition – albeit for different reasons.
The GOP majorities in the House and Senate are loath to give President Barack Obama another victory on a major issue with global ramifications – the Iran nuclear agreement still has the GOP smarting – while Democrats are of the opinion that this trade deal will be another job killer. They point to the North American Free Trade Agreement and contend that thousands of American manufacturing jobs were lost when companies closed their U.S. plants and moved operations mostly to Mexico.
Against that backdrop, the president and members of his administration will need to cobble a bipartisan coalition in Congress to ensure passage of TPP, the largest regional trade agreement in history involving the United States and 11 other countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The underlying goal of the pact is to reduce tariffs in the participating nations so as to open markets.
Fast-track authorization
Earlier this year, Congress enacted legislation – largely with Republican support – for fast-track trade authorization. That means a vote on the Trans-Pacific Partnership cannot be bogged down by amendments or filibuster.
The president is acutely aware that passage is not a given, which is why he already is reaching out to interest groups that will benefit from the trade agreement. Obama has to wait 90 days before signing TPP, after which congressional debate can begin.
“If tariffs are down, if taxes are down on goods made in America, that means U.S. countries are investing here and are able to sell over there without disadvantage,” he said after a meeting with business and agricultural leaders at the Department of Agriculture. “That’s what American leadership looks like in the 21st century.”
The fact that the meeting took place behind closed doors will provide more ammunition for opponents of the trade agreement who have long complained about the secrecy that surrounded the negotiations.
So, when Obama talks about the deal eliminating or reducing more than 18,000 tariffs that participating countries impose on U.S. exports, cynics in Congress are bound to say “show us.” They will go over the agreement with a fine-tooth comb, which is their right and responsibility as lawmakers.
Indeed, the debate over TPP already is being couched in terms that the American people can understand: Wall Street vs. working men and women.
U.S. Sen. Bernie Sanders of Vermont, a candidate for the Democratic nomination for president, wasted little time in framing the deliberations that will occur on Capitol Hill:
“Wall Street and big corporations just won a big victory to advance a disastrous trade deal,” Sanders said. “Now it’s up to us to stop it from becoming law.”
One of the major selling points from the Obama administration’s standpoint is that the agreement will put pressure on China to match various safeguards and openness to competition that’s written into TPP.
“Under this agreement, we, rather than countries like China, are writing the rules for the global economy,” the president said.
Unfair trade practices
Given that China has long indulged in unfair trade and economic practices – Mahoning Valley companies have suffered greatly as a result of the communist nation selling products in the U.S. at artificially low prices and manipulating its currency – the administration’s argument does strike a chord.
However, neither Congress nor the American people should accept the sales pitch at face value.
The debate must focus more on substance and less on politics. One issue that should be explored is the effects of NAFTA on the American economy, in general, and on jobs, in particular. Has the agreement been a rousing success, as supporters contend, or an abject failure, as detractors assert.
The American people deserve the unvarnished truth – about NAFTA and TPP.
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