CRS Says KORUS & China Relations are Key Congressional Trade Issues

CRS states that the outcome of Congress's vote on the proposed U.S.-Korea FTA (KORUS) could have important effects on broader congressional international trade issues, including: implementing legislation for the proposed Colombia and Panama FTAs; efforts to bring the Doha Round to a close; the Trans-Pacific Partnership (TPP) negotiations; and congressional consideration of the renewal of Trade Promotion Authority (TPA). CRS states, the fact that U.S. trade partners in recent years have negotiated and implemented far more FTAs than the U.S. may factor into congressional trade debate. Additionally, the slow growth and high unemployment in the U.S. economy may make it difficult for Congress to enact such trade measures.

According to the report, another major congressional trade issue is commercial ties with China. These ties have become strained in recent years over China’s growing use of distortive economic and trade policies that many deem a violation of its WTO commitments and/or may be harmful to U.S. economic interests. CRS states that how the U.S. responds to China’s economic rise and how it deals with China on major bilateral trade disputes are likely to be closely monitored by Congress. Some members of Congress may press the Obama Administration to boost efforts to induce China to abide by its WTO commitments, including by bringing more trade dispute resolution cases against China in the WTO. They may also introduce new bills that seek to address China’s currency policy, trade restrictions, and lack of effective intellectual property rights (IPR) protection.