Trade Subcommittee Chairman Discusses Obama's Trade Policy and Subcommittee Priorities

Levin Expects GSP, ATPA/ATPDEA to be Extended but Reviewed

Chairman Levin stated that he expects to see the Generalized System of Preferences (GSP) program and the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) extended with a "hard look" being taken at the programs.

(On October 16, 2008, President Bush signed Public Law 110-436, which extended the Generalized System of Preferences through December 31, 2009 and the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) for various periods, depending on the country.)

Administration to Look at China's Currency Issue

Chairman Levin confirmed that the U.S. relationship with China remains on the trade agenda and will be discussed at the upcoming G-20 meeting in London.

Levin also noted that the Treasury Department's report on currency manipulation is expected to be issued in mid-April 2009 and that the Obama Administration is looking at the currency issue as it relates to China.

Administration Could Reinstate Super 301, Levin Would Like to See a Multinational Approach to Trade Enforcement

Levin stated that he expects the Obama Administration to move beyond the Bush-era approach and use the National Trade Estimates (NTE) report to set a course on a different path in terms of enforcement. This new path could include: reinstituting Super 301 and the creation of an interagency team to investigate subsidies by leading trade partners.

According to Levin, other important aspects of an enforcement agenda, such as the Trade Enforcement Act (H.R. 496, sponsored by Levin and Committee Chairman Rangel), will require legislative action.

Levin opines that U.S. bilateral efforts have had little success and that it is time for the Obama Administration to take a more multinational approach. The next step is for the Obama Administration to raise enforcement issues at the April G-20 summit in London.

Levin Wants Non-Tariff Barriers to be Addressed in Doha Round Negotiations

According to Levin, fresh new thinking and boldness are needed to move the World Trade Organization Doha Round of trade negotiations forward. He notes that the neglect of issues related to non-tariff barriers needs to change.

Levin also expressed dissatisfaction with the WTO dispute settlement mechanism, and the WTO Appellate Body in particular.

Levin Details Outstanding Issues for Pending FTAs That Must be Resolved

According to Levin, each of the pending FTAs has economic and geopolitical benefits for the U.S., but there are also outstanding issues that must be resolved before passage can occur:

Panama. The Panama FTA provides an opportunity for Panama to make real the labor standards incorporated into the core of the FTA. Levin notes that Panama has expressed a willingness to address such issues and that Panama should now follow through with the necessary changes before U.S. Congressional consideration of the FTA. Levin states that discussions are also underway about issues relating to Panama's laws and practices regarding tax havens.

Colombia. According to Levin, the Colombia FTA poses a challenge due to Congressional concerns about the level of violence there, the role of paramilitaries, etc. Levin notes that these problems cannot be fully addressed simply by amending the labor code, and changes are needed, not only in law, but in practice.

Levin states that he plans to take a fact-finding trip to Panama and Colombia, as a prelude to a delegation trip to the region later in 2009.

Korea. Levin stated that the problems with the Korea FTA are clear - non-tariff barriers that severely limit U.S. exports of products, such as autos and other key industrial goods.

(Levin noted that in March 2007, 15 Democrats and Republicans offered a very specific proposal to address concerns about auto barriers and non-tariff barriers, but that neither the Bush Administration nor the South Korean Government responded to the proposal.)

Levin Doesn't Expect New Trade Promotion Authority Right Away

Levin stated that he doesn't expect to see the Obama Administration ask for new Trade Promotion Authority right away, although he expects it to be discussed at some point. According to Levin, if there is new TPA, he expects that it would include a mechanism to allow for greater congressional input than TPA has had in the past.

Trade Subcommittee's Oversight Agenda Includes CBP, NAFTA, Climate Change

According to Levin, as part of its oversight and accountability agenda, the Trade Subcommittee will:

insist that U.S. Customs and Border Protection renew its commitment to securing and facilitating the flow of goods across the border;

oversee the Administration's work under existing agreements, such as NAFTA, CAFTA, and the U.S.-Peru FTA;

play an active role in WTO negotiations;

address climate change legislation;

explore issues like currency and investment; and

ensure the trade advisory committee system achieves its purpose.

(See ITT's Online Archives or 02/19/09 news, 09021910, for BP summary of the Trade Subcommittee's hearing and oversight-related activities planned for 2009-2010.

See ITT's Online Archives or 01/16/09 news, 09011605, for BP summary of H.R. 496, the Trade Enforcement Act of 2009.)