Ways & Means Says Inaction on Pending FTAs is Blocking Other Trade Measures

Committee Leadership Says Lack of Action on 3 Pending FTAs Halting All Else

In his opening statement, Committee Chairman Camp (R) stressed that the lack of commitment on the pending free trade agreements (FTAs) with Korea, Colombia and Panama is hindering the rest of the U.S. trade agenda -- most recently the extension of the Andean Trade Preferences Act (ATPA)/Andean Trade Promotion and Drug Eradication Act (ATPDEA) and Trade Adjustment Assistance (TAA)¹. Camp stated that the President’s unwillingness to engage, especially on the Colombia FTA, has ground everything else to a halt.

Camp also reiterated his call for the President to submit all three pending FTAs to Congress by July 1, 2011.

In addition, Trade Subcommittee Chairman Brady (R) warned the USTR that there is virtually no chance that Congress will move Russia PNTR (permanent normal trade relations) before it acts on the pending FTAs.

Ranking Member Urges Action on China Currency, Will Introduce Bill on Feb 10

Committee Ranking Member Levin (D) urged the Administration to take a more assertive stance to address China’s currency manipulation, including by filing a World Trade Organization (WTO) case, applying countervailing duties in appropriate cases, and formally designating China as a currency manipulator.

On February 10, 2011, Levin and others are expected to reintroduce China currency legislation in the House and Senate. (See ITT’s Online Archives or 02/10/11 news, 11021011, for additional details.)

USTR Outlines Strategy for Completing, Submitting Pending FTAs

The USTR testified that the President intends to submit the U.S.-Korea free trade agreement (KORUS FTA) to Congress in the next few weeks.

The USTR also stated that the President has directed an intensified engagement with Colombia and Panama in order to resolve outstanding issues regarding the Colombia and Panama FTAs as soon as possible this year and bring the agreements to Congress for consideration immediately thereafter.

The USTR warned that there are still serious issues that need to be resolved before the Colombia and Panama FTAs can be submitted for Congressional consideration. He stated that Panama and Colombia have begun to take important steps, but more remains to be done. According to the USTR, staff from his office will be traveling to Colombia to work on the pending FTA during the week of February 14, 2011.

Administration’s Trade Agenda also Includes Russia, TPP, and China

During the hearing, the USTR addressed other parts of the Administration’s trade policy, including Russia, the Trans-Pacific Partnership, and China. Highlights include:

Russia’s WTO Accession. The USTR testified that the Administration’s efforts to bring Russia into the World Trade Organization will include working with Congress this year to grant Russia PNTR.

(In December 2010, the President’s Export Council submitted a recommendation to the President that the Administration ensure that Russia continues to receive the proper attention and focus on the trade agenda for 2011. See ITT’s Online Archives or 01/04/11 news 11010421, for BP summary of PEC recommendation.)

TPP. The USTR testified that in the TPP the U.S. is moving to unlock the Asia-Pacific through a 21st century trade agreement. The USTR noted that the Administration’s hope is that the TPP will become the basis for an Asian-Pacific Economic Cooperation (APEC) FTA.

China currency, IPR, etc. The USTR also addressed concerns about various outstanding U.S.-China trade issues, including China’s lack of protection for intellectual property rights, indigenous innovation, currency undervaluation, etc.

According to the USTR, between the recent U.S.-China Joint Commission on Commerce and Trade (JCCT) meetings and the visit of China’s President Hu in January 2011, the U.S. and China made progress on numerous issues, including IPR protection. In particular, the USTR noted that China agreed that it will not link its innovation policies to the provision of government procurement preferences and will improve IPR enforcement by auditing its government agencies to ensure they are using legitimate software. However, the USTR deferred questions regarding the undervaluation of China’s currency to the Treasury Department.

¹The House was scheduled to consider a bill to extend ATPA and TAA, but removed the bill from the House calendar on February 8, 2011. According to a Congressional source, the House is not expected to vote on ATPA this week and that no decision has been made yet on whether a vote will happen next week, although press reports state this or a modified measure could return to the floor next week. (See ITT’s Online Archives or 02/09/11 news, 11020930, for most recent BP summary.)

(See ITT's Online Archives or 02/10/11 news, 11021039, for BP summary on expiration of ATPA/ATPDEA on Feb 12, 2011.

See ITT’s Online Archives or 02/07/11 news. 11020728, for BP summary of Treasury’s recent report which indicated that China was not a currency manipulator.

See ITT’s Online Archives or 02/07/11 news, 11020713, for BP summary of Representative Levin’s announcement that he plans to reintroduce a China currency bill.)

See ITT’s Online Archives or 12/06/10 news, 10120628, for BP summary of the President’s announcement that the U.S. and Korea had successfully resolved the outstanding issues (including autos) with the KORUS FTA.

See ITT’s Online Archives or 01/26/11 news, 11012637, for BP summary of the President’s State of the Union address in which he asked Congress to pass the KORUS FTA as soon as possible.)

See ITT’s Online Archives or 01/26/11 news, 11012633, for BP summary of the House Ways and Means Committee’s January 25, 2011 hearing on pending FTAs.)

USTR testimony available here

Camp opening statement available here

Levin opening statement available here