Finance Chair Says Congress Must Enact TAA in Tandem with FTAs

The Deputy USTR responded that she finds it hard to imagine approving trade agreements if TAA is not also being renewed. She emphasized that the Administration plans to work with Congress on the timing and sequencing of the FTAs and other items on the U.S. trade agenda (e.g., renewal of TAA, the Generalized System of Preferences (GSP) program and the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA), permanent normal trade relations for Russia, etc.).

(The 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 the Andean Trade Preferences Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA, which also expired on February 12, 2011).)

Administration Not Expected to Submit Colombia FTA Until After Mid-June

Chairman Baucus noted that Congress and the Administration are working on the implementing bill and Statement of Administrative Action (SAA) for the Colombia Trade Promotion Agreement (TPA)¹ as Colombia has met the first stage of its commitments under the new labor agreement.

The second stage of labor commitments are due by June 15, 2011 and once those are met, Chairman Baucus expects the Administration to formally submit the Colombia TPA implementing package (the TPA, implementing bill, SAA, and certain supporting information) to Congress for a vote.

Chairman Baucus further stated that once Colombia implements the third stage of labor commitments (which have a December 15, 2011 deadline), and other commitments related to the TPA, the Administration will certify to Congress that Colombia has taken the necessary steps to allow the TPA to enter into force (through the issuance of a proclamation by the President).

Despite being pressed by Committee members, the Deputy USTR did not provide specifics on the timing of the Administration’s submission of the Colombia implementing legislation package to Congress.

(Ranking Member Hatch (R) pointed out that the USTR had previously stated that the Administration would submit the implementing legislation packages for the pending FTAs with Korea, Colombia, and Panama to Congress before August 2011.)

Administration to Talk with Congress About Fast Track After More TPP Progress

The Deputy USTR added that the Administration was interested in working with Congress on renewal of Trade Promotion Authority (TPA, also known as fast track) as the U.S. gets closer to completing a Trans-Pacific Partnership (TPP) Agreement.

In addition, the Deputy USTR explained that because the Colombia TPA was completed before the expiration of the fast track in 2007, she expects that it would still be subject to fast track procedures.

(Another senior Administration official had previously stated that the implementing legislation packages for the pending FTAs would be submitted to Congress under fast track.)

¹International Trade Commission (ITC) sources have previously stated that the term "trade promotion agreement" (TPA) is essentially interchangeable with the term "free trade agreement" (FTA).

(See ITT's Online Archives or 05/12/11 news, 11051142, for BP summary of Secretary of State Clinton's remarks on the pending FTAs, ATPDEA, TAA, etc.)

See ITT’s Online Archives or 04/07/11 news, 11040737, for BP summary on Colombia labor plan.

See ITT’s Online Archives or 05/05/11 news, 11050515, for BP summary of the USTR’s announcement that it was ready to begin discussion on the draft implementing bill and draft Statement of Administrative Action for the Colombia TPA.)

Witness statements and congressional remarks available here

Senate Finance Committee press release available here