GSP Set for Renewal as Congress Wraps Up Legislative Process for Preferences, TPA
The House overwhelmingly passed a trade preferences package that would renew the Generalized System of Preferences on June 25. The vote came just a day after the Senate passed a host of trade bills and resolutions, ending a months-long legislative battle over Trade Promotion Authority. President Barack Obama is now set to sign TPA and the preference package into law in the coming days and renew GSP, the African Growth and Opportunity Act, and two Haiti tariff preference level programs (see 1506120015). After his expected signature, importers would soon be able to file retroactive relief for duties incurred over the past two years of GSP expiration.
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The Senate passed Trade Promotion Authority in a tight 60-38 vote, with 13 Democrats in support. Following the Senate vote, Senate Majority Leader Mitch McConnell, R-Ky., then moved quickly to pass the Trade Adjustment Assistance and preferences package with a strong bipartisan support, before finally giving the go-ahead for the Senate’s participation in a conference over Customs Reauthorization legislation. The House also passed Trade Adjustment Assistance as part of the preferences package on June 25. Both chambers then left Capitol Hill for a 10-day recess.
U.S. companies and industry groups, including the Airforwarders Association, hailed TPA passage as a critical step towards locking down the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, among other potential free trade agreements. "As freight forwarders, we know precisely what it means for the United States to be the world's largest importer of goods and services," said Brandon Fried, the AfA's executive director. "The president and his congressional allies on this issue had a tough task to get TPA passed, but this legislation was essential to expanding U.S. trade and we are relieved and satisfied that they got it done."
The U.S. Chamber of Commerce, the National Retail Federation and droves of other industry advocates praised passage. U.S. Trade Representative Michael Froman also joined the chorus of applause. “Based on this support, the U.S. can speak with one voice as we move forward to final passage and with trade agreements such as the [TPP] and [TTIP],” said Froman in a statement.
The House strategy on the TAA and preferences package was largely unclear in the days leading up to that chamber’s June 25 vote (see 1506240027). Democrats and Republicans previously shot down TAA on June 12 in a vote that derailed TPA and raised concern for trade advocates. But Minority Leader Nancy Pelosi, D-Calif., told colleagues on June 24 she’d back the package. “I’m disappointed that the TAA bill isn’t nearly as robust as it should be in light of a trade agreement that encompasses 40 percent of the global economy,” Pelosi told the Democratic caucus. “While we may not all vote in the same manner on TAA, I will support its passage because it can open the door to a full debate on TPP.”
Other free trade critics quickly emphasized the need to heighten focus on TPP in the wake of the legislative victory for trade proponents. “This isn’t the end -- it’s merely a setback. The fight against fast track brought together a huge, new, and diverse network of concerned Americans who are fighting for fair and responsible trade,” said the Sierra Club in a statement. “There are now millions of energized fair trade activists that are united and ready to take on the Trans-Pacific Partnership, bring its dangerous flaws into the light of day, and make sure trade is done right.”
House Ways and Means ranking member Sandy Levin, D-Mich., the top Democratic trade legislature in the House and a fierce opponent of TPA, also placed the focus squarely on TPP as the U.S. edges closer to wrapping up those negotiations. "We need to insist that our trading partners offer truly reciprocal access to their agricultural and automotive markets. And we need to prevent investors from challenging legitimate public welfare measures in special international tribunals," said Levin in a statement. “Only then would TPP be moving on the right track, be worthy of the support of the American people, and gain the votes of a much broader coalition of members of Congress than voted for TPA."
Both chambers of Congress are poised to first tackle customs conference before moving onto other trade-related legislation. Republican leadership has vowed to move quickly to send a compromise bill to Obama. The House hasn’t yet formally endorsed conference.