Senator Plans to Ask for Blue Ribbon Commission on Trade, Re-Introduce TRADE Act, Etc.

Senator Brown Outlines Three-Part Plan to Reverse Misdirection on Trade

Senator Brown states that in order to reverse the misdirection in trade, he is offering three major recommendations to overhaul the U.S. status quo trade policy:

Blue ribbon commission on trade policy - he is requesting the President to convene a blue ribbon commission on trade policy. A blue ribbon commission would acknowledge valuable recommendations from the public and Congress that can help create a new path on trade.

The blue ribbon commission on trade policy, combined with a GAO report (see below), would not delay trade agreements, but would instead guarantee evidence-based decision-making on future trade policy. If the President does not open up NAFTA for review, the U.S. must not continue the failed system for future trade agreements.

Stronger trade enforcement - he will work with Congress to ensure trade enforcement is a government wide-practice. In the short term, he states that the Administration can enforce trade laws by accepting review of the AFL-CIO Section 301 case alleging worker abuse by China, and other trading partners. The Administration can also use the Section 421 safeguard mechanism that defends American businesses from import surges from China.

Stronger enforcement can also rebalance the U.S. trade relationship with China, noting that the U.S. has not seen an increase in U.S. exports that was promised during the China permanent normal trade relations (PNTR) debate. Strong enforcement also means addressing China's currency manipulation. He expressed disappointment that the Treasury Department's recent report did not cite China as a currency manipulator.

Reassert Congressional oversight - Congressional oversight must be re-asserted in trade policy making. Congress should give the President the authority to negotiate better trade deals, but that Congress needs a stronger role in the process.

With any delegation of its authority to negotiate better trade deals, Congress must ensure negotiating objectives are binding, and that there is a Congressional vote on a trade agreement before it is signed by the President.

Senator Brown Will Soon Re-Introduce TRADE Act

Senator Brown opined that Congress should enact the Trade Reform, Accountability, Development, and Employment (TRADE) Act that he introduced during the 110th Congress and plans to reintroduce in a few weeks.

(The TRADE Act of 2008 contained provisions on the review of current trade agreements, new standards and requirements for trade pacts, renegotiation plans for current trade agreements, and giving Congress a greater role. See ITT's Online Archives or 06/17/08 news, 08061705, for BP summary of the 2008 TRADE Act, introduced in the Senate by Senator Brown.)

Senator Brown Will Ask GAO for Study on Current Trade Agreements

According to Senator Brown, the U.S. cannot change its failed economic strategy of the past unless it changes its trade policy. For that reason, Senator Brown stated that he would be asking the Government Accountability Office to conduct a comprehensive study on current U.S. trade agreements. The GAO report would provide non-ideological, non-partisan analysis of what is working and what is not working in the U.S. trade policy.

Senator Brown characterizes this as an important step towards re-directing U.S. trade policy that will provide critical solutions for the U.S. recovery strategy. The basic premise of redirecting U.S. trade policy is that the U.S. must see evidence that the trade model is working before Congress passes new trade agreements - whether with Panama, Colombia, or South Korea.

¹Senator Brown is chairman of the Subcommittee on Economic Policy in the Senate Banking, Housing, and Urban Affairs Committee and serves on the Health, Education, Labor, Pensions Committee.

Senator Brown's remarks as prepared for delivery available by emailing documents@brokerpower.com