Administration to Wait for TAA Agreement w/Congress to Submit FTAs

May 17, 2011 by Cindy Arevalo|Congress

During a May 16, 2011 conference call, the U.S. Trade Representative and other Administration officials stated that the Administration would not submit the implementing legislation packages for the pending free trade agreements with Korea, Colombia, and Panama until it has an agreement with Congress to renew Trade Adjustment Assistance (TAA) that is consistent with the objectives of the expanded 2009 version¹.

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Administration officials state that once an agreement with Congress on TAA has been reached, the Administration will determine the timing for the submission of the FTA implementing legislation packages.

(This is in line with prior Administration and Senate Finance Committee Chairman (D) statements that TAA renewal should be enacted in tandem with the FTAs. See ITT’s Online Archives or 05/13/11 and 05/12/11 news, 11051320 and

Note that Senate Finance Committee Ranking Member Hatch (R) issued a statement criticizing the Administration’s decision to link the FTAs to TAA. Hatch statement available here.)

See ITT's Online Archives or 05/05/11 news, [Ref:11050515">11051218}, for BP summaries.

Note that Senate Finance Committee Ranking Member Hatch (R) issued a statement criticizing the Administration’s decision to link the FTAs to TAA. Hatch statement available here.)

See ITT's Online Archives or 05/05/11 news, [Ref:11050515, for BP summary of USTR's statement that the Administration was ready to work on the draft implementing legislation and draft Statements of Administrative Action for the pending FTAs.)

Administration Says It Will Not Hold FTAs for GSP, ATPDEA Renewal Accord

Officials added that the Administration will not hold up the FTA packages pending an agreement with Congress on extending the trade preference programs (i.e., Generalized System of Preferences (GSP) and Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA).

Note that GSP renewal continues to face other roadblocks, including issues of retroactivity, Senate “holds,” etc. It is also not known whether House Ways and Means Republicans would require the FTAs to move before any other items on the trade agenda.

(See ITT’s Online Archives or 05/09/11 news, 11050932, for most recent BP update on efforts to renew GSP and the roadblocks it is facing.

See ITT’s Online Archives or 02/10/11 news, 11021031, for BP summary on Ways and Means Republicans February 2011 statement that the Administration’s lack of commitment on the pending FTAs was blocking other trade measures.)

See ITT’s Online Archives or 04/29/11 news, 11042926, for BP summary of USTR’s statement that the Administration wants the next steps for the pending FTAs to include GSP, etc.)

(GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, expired on December 31, 2010. ATPDEA expired on February 12, 2011.

¹The expansion of TAA to service workers, etc. in 2009 lapsed on February 12, 2011, leaving in effect only the “old,” more restrictive program. Prior to its lapse, efforts to renew it failed after attempts were made to link its renewal to the extension of ATPDEA.