Future U.S. free trade agreements, such as the Transatlantic Trade and Investment Partnership, should include an Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) in order to ensure each signatory country has an AEO program based on the World Customs Organization Standards to Secure and Facilitate Global Trade Framework, said American Association of Exporters and Importers President & CEO Marianne Rowden in a Dec. 20 letter (here). That can be accomplished by passage of Trade Promotion Authority that enables Congress to demand negotiating objectives, such as the trade facilitation related AEO MRA requirement, said Rowden. The letter was addressed to Senate Finance Chairman Max Baucus, D-Mont., and House Ways and Means Chairman Dave Camp, R-Mich.
The administration is neglecting to respond to congressional demands for strong currency manipulation provisions in a final Trans-Pacific Partnership (TPP) pact, said House Trade Working Group Chairman Michael Michaud, D-Maine. The negotiations may also be failing to achieve the acceptable standards for U.S. manufacturing, said Michaud in a Dec. 19 statement. “Much more progress is needed on key issues for this agreement to be a good deal for American workers,” said Michaud. “These issues include, but are not limited to, Vietnam’s labor standards, rules of origin, state-owned enterprises, access to medicines, and of course tariff reductions on sensitive items such as footwear.”
President Barack Obama formally announced on Dec. 20 his intent to nominate Finance Chairman Max Baucus, D-Mont., as Ambassador to China (here). Baucus welcomed the nomination, pledging to take on the role if confirmed, according to a statement (here). “The U.S.-China relationship is one of the world’s most important bilateral relationships,” said Baucus. “My goal will be to further strengthen diplomatic and economic ties between our two nations.” Baucus, however, does not plan to resign from the Senate to until confirmation, said a Baucus spokesman, a process that could take several months.
Recent trade-related bills introduced in Congress include:
Congress delivered the Bipartisan Budget Act of 2013, H.J.Res.59 (here), to President Barack Obama's desk on Dec. 18, following Senate passage with 64 affirmative votes.
The Fiscal Year 2014 Appropriations Bill should include language that prevents funds from being used to implement rules that permit poultry slaughtered in China to be exported to the U.S., said Representative Rosa DeLauro, D-Conn., and 13 other House members in a Dec. 18 letter to Senate Appropriations leaders. The Agriculture Department Food Safety and Inspection Service recently decided to permit Chinese imports of poultry processed in China but raised and slaughtered in the U.S., Chile and Canada, said the letter.
President Barack Obama intends to nominate Senate Finance Chairman Max Baucus, D-Mont., as the next ambassador to China, reported The Washington Post (here), Politico (here) and other news outlets on Dec. 18. The reports all cite anonymous sources. Baucus’ office and the White House did not respond for comment. The news reports suggest Senator Ron Wyden, D-Ore., would be the likely successor to the Finance chairmanship. “Senator Wyden looks forward to Senator Baucus' comments on his future plans and will not comment further at this time,” said a Wyden spokesman.
Although the Asia-Pacific region presents vast economic opportunity, there are several non-tariff trade barriers that prevent U.S. access to regional markets, including currency manipulation, intellectual property protection and corruption, said Sen. Ben Cardin, D-Md., Chairman of the Foreign Relations Subcommittee on East Asian and Pacific Affairs. Cardin and others discussed the barriers during a Dec. 18 hearing titled Rebalance to Asia IV: Economic Engagement in the Asia-Pacific Region. The U.S. will be unable to finish an agreement on the Trans-Pacific Partnership in 2013, due in part to U.S. insistence on high standards for some of those issues, said a U.S. Trade Representative official.
House and Senate lawmakers submitted a request on Dec. 12 to the Government Accountability Office (GAO) to conduct a review on the impact of the African Growth and Opportunity Act (AGOA), originally enacted in 2000. The law is due for renewal in 2015. The group of 18 bipartisan, bicameral lawmakers requested responses to the following specific inquiries:
The Senate is scheduled to vote on Dec. 18 on the Bipartisan Budget Act of 2013, H.J.Res.59 (here), following a Senate vote the day before to clear a procedural hurdle and enter into final debate (here). The legislation puts “force and effect” into non-binding language from a budget passed by the Senate in March (here) that would strengthen textile and apparel enforcement in free trade agreements. Section 367, introduced by Senator Kay Hagan, D-N.C., enables the Senate to institute a deficit neutral reserve fund to strengthen enforcement through increasing training, monitoring and verification of textile and apparel articles.