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A ‘21st-Century’ Trade Bill?

Trade Bill ‘Groundbreaking’ in Acknowledgement of Copyright, Internet, Say Industry Representatives

Senate Finance Committee Chairman Max Baucus, D-Mont., ranking member Orrin Hatch, R-Utah, and House Ways and Means Committee Chairman Dave Camp, R-Mich., introduced trade promotion authority (TPA) legislation Thursday, drawing praise and criticism alike from lawmakers and industry officials. Advocates of the bill, H.R. 3830, touted the enhanced intellectual property rights protections and the focus on Internet-based services as central to the global economy. The bill’s sponsors also emphasized the critical role the Bipartisan Congressional Trade Priorities Act of 2014 (http://1.usa.gov/1lYakkc) will play in closing pending trade pacts (http://1.usa.gov/K99u7T), such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership.

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"The TPA legislation that we are introducing today will make sure that these trade deals get done, and get done right,” Baucus, who is not running for re-election this year, said in a statement (http://1.usa.gov/1bZ4ARA). “This is our opportunity to tell the administration -- and our trading partners -- what Congress’ negotiating priorities are.” The introduction also quickly garnered the support of administration officials. The legislation will help create a level playing field for U.S. companies to compete globally by sealing the high-profile trade pacts, said U.S. Trade Representative Michael Froman (http://1.usa.gov/1bWuKo9).

The White House is prepared to work with Congress to pass the TPA bill, the administration said. “We need to use every tool we have to knock down trade barriers that prevent American goods and services from being exported,” the White House said in a release (http://1.usa.gov/1ksxLGT). “And if we don’t take the leadership to set high standards around the world, we will face a race to the bottom which is not in the interest of our workers and firms."

The trade bill is unique in its acknowledgement of numerous digital issues, said industry advocates. It’s “groundbreaking,” said Computer and Communications Industry Association President Ed Black in a statement (http://bit.ly/KOooBP). Recognizing “the critical role networks play in supporting traditional sectors across the entire economy, is long overdue,” he said.

Specifically, the bill “devotes welcome attention to new ‘21st-Century’ trade issues, including impediments to cross-border data flows, forced localization of facilities, and related barriers to U.S. goods and services exports,” Black said. “It is also noteworthy that the bill acknowledges that intellectual property provisions must be crafted to facilitate legitimate digital trade."

An intellectual property academic and industry representative echoed Black’s comments. Sean Flynn, associate director of the Program on Information Justice and Intellectual Property at American University Washington College of Law, called the bill “a welcome sign that Congress may be preparing to increase its oversight over international trade, including trade laws that alter or restrict our domestic intellectual property laws.” The International Intellectual Property Alliance, a coalition of seven U.S. trade associations for companies producing copyrighted materials, highlighted the “congressionally-mandated objectives to protect the copyright sectors in foreign markets,” according to a release. “It is critical that our trade negotiators promote strong legal protections for U.S. creativity and innovation in the United States and abroad, to preserve and enhance jobs, exports and economic contributions in the copyright and related sectors,” said IIPA Counsel Steven Metalitz. “This legislation promotes a trade agenda that seeks effective measures to protect copyright materials, is flexible enough to accommodate the evolution of technology and digital distribution, and balances the interests of a broad array of U.S. stakeholders.”

But the bill is lacking in some areas, Flynn said. “Unfortunately, the bill does not go far enough to ensure public transparency and participation, and does little to ensure that the products of such negotiations promote the public interest."

Determining the bill’s chances is difficult, observers said. The looming inclusion of other pieces of legislation in what is poised to become a much larger bill in the end makes gauging congressional support difficult, said Scott Miller, Scholl chair in international business at the Center for Strategic and International Studies, in an interview. “The thing is this is only the start,” he said. “Keep in mind this is only [the] TPA portion. It’s a long way from an omnibus trade bill.” ,