Senators Press USTR on TPA, Japan as Agency Warns of Harmful Budget Cuts
Sequester-induced budget cuts plus an additional proposed cut in the budget plan currently moving through Congress could harm the U.S. Trade Representative’s ability to enforce and engage multiple trade deals, acting USTR Demetrios Marantis told the Senate Finance Committee March 19. At the hearing, senators pressed Marantis for action on Trade Promotion Authority -- “the sooner the better,” Sen. John Thune, R-S.D., said -- and many also expressed concerns over Japan’s interest in joining Trans-Pacific Partnership talks, a topic of concern for House members as well (see 13031523).
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Japan imports one vehicle for every 120 vehicles sold in the U.S., Sen. Debbie Stabenow, D-Mich., said. The country has been restricting auto imports for 80 years -- “Why in the world would we believe at this point that this would be any different?” she said. Marantis said USTR is concerned about Japan’s policies in autos, insurance and others, but stressed that if Japan joins the TPP “it will be capable of meeting the highest standards possible.”
A few committee members also asked Marantis to include 12 years of data protection for biologics in the TPP, including Ranking Member Orrin Hatch, R-Utah, who said he was “perplexed” by the administration’s refusal to include the 12-year regulation in the TPP, since that is the standard of protection found in U.S. law. Marantis said data protection is a difficult area within the TPP context. “Different TPP partners treat biologics in very different ways,” and the USTR is working to “strike the right balance between flexibility and specificity.”
Calls for renewal of Trade Promotion Authority came from nearly every Senator on the committee. Without the authority, “we won’t get the last best offer on TPP,” said Sen. Rob Portman, R-Ohio. Fellow Ohio Senator, Democrat Sherrod Brown, asked Marantis how new TPA would be different from previous years, especially so the U.S. trade imbalance doesn’t continue to grow. To each, Marantis repeated that the administration was willing to begin negotiations on renewing TPA immediately, which he said will include discussions about how the authority will be crafted, and what negotiating objectives should be. “We have heard the strong calls to move forward on TPA,” he said. “It’s in our mutual interest to use TPA as a tool.”