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Pacific Trade Authority Bill Wins Final Approval in Senate Trade Authority Bill Wins Final Approval in Senate
(about 9 hours later)
WASHINGTON — The Senate on Wednesday gave final approval to legislation granting President Obama enhanced power to negotiate major trade agreements with Asia and Europe, sending the president’s biggest end-of-term legislative priority to the White House for his signature.WASHINGTON — The Senate on Wednesday gave final approval to legislation granting President Obama enhanced power to negotiate major trade agreements with Asia and Europe, sending the president’s biggest end-of-term legislative priority to the White House for his signature.
Senators then approved a bill that provides assistance to workers displaced by international trade accords, attaching it to a popular African trade measure that will go to the House for a final vote Thursday morning. House Democrats signaled they would support the measure, which they had voted down two weeks before.Senators then approved a bill that provides assistance to workers displaced by international trade accords, attaching it to a popular African trade measure that will go to the House for a final vote Thursday morning. House Democrats signaled they would support the measure, which they had voted down two weeks before.
The burst of legislative action secured a hard-fought victory for Mr. Obama and the Republican congressional leadership. It kept on track an ambitious agenda to complete a broad trade agreement joining 12 countries — from Canada and Chile to Australia and Japan — into a web of rules governing trans-Pacific commerce. Negotiators will also move forward on an accord with Europe, knowing that any agreement over the next six years will be subject to a straight up-or-down vote, but cannot be amended or filibustered in Congress.The burst of legislative action secured a hard-fought victory for Mr. Obama and the Republican congressional leadership. It kept on track an ambitious agenda to complete a broad trade agreement joining 12 countries — from Canada and Chile to Australia and Japan — into a web of rules governing trans-Pacific commerce. Negotiators will also move forward on an accord with Europe, knowing that any agreement over the next six years will be subject to a straight up-or-down vote, but cannot be amended or filibustered in Congress.
The Senate cleared the so-called trade promotion bill 60 to 38, with 13 Democrats joining all but five Republicans. After the Senate voted 76 to 22 to cut off debate on the worker aid and African trade bill, senators agreed to pass it by voice vote.The Senate cleared the so-called trade promotion bill 60 to 38, with 13 Democrats joining all but five Republicans. After the Senate voted 76 to 22 to cut off debate on the worker aid and African trade bill, senators agreed to pass it by voice vote.
“This is a critical day for our country,” said Senator Orrin G. Hatch, Republican of Utah and chairman of the Senate Finance Committee, who called trade promotion authority “the most important bill we’ll do this year.”“This is a critical day for our country,” said Senator Orrin G. Hatch, Republican of Utah and chairman of the Senate Finance Committee, who called trade promotion authority “the most important bill we’ll do this year.”
“It’s taken a while to get here, longer than many of us would have liked,” he added, “but anything worth doing takes effort.”“It’s taken a while to get here, longer than many of us would have liked,” he added, “but anything worth doing takes effort.”
Final passage does not guarantee the president’s completion of the more imminent Trans-Pacific Partnership, seen as a central element of the White House’s strategic shift toward Asia. Negotiations with Europe over the Transatlantic Trade and Investment Partnership have further to go.Final passage does not guarantee the president’s completion of the more imminent Trans-Pacific Partnership, seen as a central element of the White House’s strategic shift toward Asia. Negotiations with Europe over the Transatlantic Trade and Investment Partnership have further to go.
But the Obama administration and its trading partners saw approval of fast-track negotiating power as a vital prerequisite. Countries like Japan and Australia refused to make the politically precarious compromises necessary to complete the trade deals until they knew that Congress could not amend the final agreement and ask for additional negotiations.But the Obama administration and its trading partners saw approval of fast-track negotiating power as a vital prerequisite. Countries like Japan and Australia refused to make the politically precarious compromises necessary to complete the trade deals until they knew that Congress could not amend the final agreement and ask for additional negotiations.
At the same time, the trade promotion bill, hashed out over months of arduous negotiations, adds new hurdles to completion. Under the legislation, the president may not even sign a final agreement for two months, and Congress cannot consider the deal for two additional months while the public gets its first complete look at the accord. That delay will most likely push any consideration of the Pacific accord well into the presidential election season, a difficult political environment in which to consider the largest trade agreement since the North American Free Trade Agreement.At the same time, the trade promotion bill, hashed out over months of arduous negotiations, adds new hurdles to completion. Under the legislation, the president may not even sign a final agreement for two months, and Congress cannot consider the deal for two additional months while the public gets its first complete look at the accord. That delay will most likely push any consideration of the Pacific accord well into the presidential election season, a difficult political environment in which to consider the largest trade agreement since the North American Free Trade Agreement.
A separate bill bolstering trade enforcement rules — set for final passage in July — includes measures added late in the process to win conservative support, further complicating the president’s job. They include a provision prohibiting any trade agreement from forcing action by the United States on climate change and another forbidding trade accords to include provisions easing immigration and visa rules.A separate bill bolstering trade enforcement rules — set for final passage in July — includes measures added late in the process to win conservative support, further complicating the president’s job. They include a provision prohibiting any trade agreement from forcing action by the United States on climate change and another forbidding trade accords to include provisions easing immigration and visa rules.
The dislocated worker bill swings the Democrats’ direction. Such trade adjustment assistance programs have existed since the Kennedy administration, but pro-trade Democrats demanded a significant expansion as a price for their support for fast track. The bill extends assistance through June 2022, with an expansion of the program through June 2021. That includes $2.7 billion in funds for worker retraining and education, and a provision that for the first time makes workers in service industries eligible for a program once reserved for out-of-work manufacturing workers.The dislocated worker bill swings the Democrats’ direction. Such trade adjustment assistance programs have existed since the Kennedy administration, but pro-trade Democrats demanded a significant expansion as a price for their support for fast track. The bill extends assistance through June 2022, with an expansion of the program through June 2021. That includes $2.7 billion in funds for worker retraining and education, and a provision that for the first time makes workers in service industries eligible for a program once reserved for out-of-work manufacturing workers.
The bill extends and expands a tax credit for the purchase of health insurance, and it includes subsidies for the wages of workers 50 or older who were forced to find lower-paid jobs than the ones they lost to international competition.The bill extends and expands a tax credit for the purchase of health insurance, and it includes subsidies for the wages of workers 50 or older who were forced to find lower-paid jobs than the ones they lost to international competition.
This month, House Democrats voted down that measure when it was attached to enhanced trade negotiating powers, hoping that by defeating that part of the bill, they could derail the entire trade package.This month, House Democrats voted down that measure when it was attached to enhanced trade negotiating powers, hoping that by defeating that part of the bill, they could derail the entire trade package.
That prompted Republican leaders — with the support of the White House — to break apart those two measures and approve them separately over the last two weeks. After meeting as a caucus Wednesday morning, House Democrats decided they could no longer oppose worker assistance knowing that voting it down would have no impact on a trade promotion authority bill heading to the president regardless.That prompted Republican leaders — with the support of the White House — to break apart those two measures and approve them separately over the last two weeks. After meeting as a caucus Wednesday morning, House Democrats decided they could no longer oppose worker assistance knowing that voting it down would have no impact on a trade promotion authority bill heading to the president regardless.
Senior Democrats said they would now focus their pressure on the Trans-Pacific Partnership itself.Senior Democrats said they would now focus their pressure on the Trans-Pacific Partnership itself.
“My responsibility is to have a unified caucus and try to focus on what we have to do next, which is to make sure T.P.P. is a great agreement,” said Representative Nancy Pelosi, Democrat of California and the House minority leader, who formally announced her support for the worker aid measure in a letter to the House Democratic Caucus on Wednesday. “There’s a lot of work to be done.”“My responsibility is to have a unified caucus and try to focus on what we have to do next, which is to make sure T.P.P. is a great agreement,” said Representative Nancy Pelosi, Democrat of California and the House minority leader, who formally announced her support for the worker aid measure in a letter to the House Democratic Caucus on Wednesday. “There’s a lot of work to be done.”
Democrats remain bitter about the turn of events since June 12, when they thought they had won.Democrats remain bitter about the turn of events since June 12, when they thought they had won.
Like Ms. Pelosi, Representative Keith Ellison, Democrat of Minnesota and one of the architects of the plan to scuttle the trade package by voting down the worker assistance program, conceded defeat. “Beyond a symbolic expression of resolve, I don’t see the point of fighting,” he said.Like Ms. Pelosi, Representative Keith Ellison, Democrat of Minnesota and one of the architects of the plan to scuttle the trade package by voting down the worker assistance program, conceded defeat. “Beyond a symbolic expression of resolve, I don’t see the point of fighting,” he said.
The votes were an enormous victory not only for the president and Republican leaders but also for big businesses, agriculture interests, Hollywood and Silicon Valley, which pressed hard to keep the trade agenda moving. Global commerce has bolstered corporate profitability and expanded markets for farmers, but the American market remains more open than many of the United States’ trading partners’.The votes were an enormous victory not only for the president and Republican leaders but also for big businesses, agriculture interests, Hollywood and Silicon Valley, which pressed hard to keep the trade agenda moving. Global commerce has bolstered corporate profitability and expanded markets for farmers, but the American market remains more open than many of the United States’ trading partners’.
“Our leaders in Washington proved they could tune out the populists and demagogues of the left and the right and take action on an important measure to put our economy back on track,” said Thomas J. Donohue, president of the U.S. Chamber of Commerce.“Our leaders in Washington proved they could tune out the populists and demagogues of the left and the right and take action on an important measure to put our economy back on track,” said Thomas J. Donohue, president of the U.S. Chamber of Commerce.
It was also a defeat for environmental groups, liberal activists, some Tea Party conservatives and, most of all, organized labor, which spent millions of dollars and used enormous organizational muscle pressuring lawmakers and trying to kill the trade measure. Unions strongly maintain that since the North American Free Trade Agreement of 1993, trade agreements have sent millions of high-paying manufacturing jobs overseas while depressing wages at home.It was also a defeat for environmental groups, liberal activists, some Tea Party conservatives and, most of all, organized labor, which spent millions of dollars and used enormous organizational muscle pressuring lawmakers and trying to kill the trade measure. Unions strongly maintain that since the North American Free Trade Agreement of 1993, trade agreements have sent millions of high-paying manufacturing jobs overseas while depressing wages at home.
As for the Pacific trade deal, many issues remain, including access to Japanese auto and agriculture markets, Australian concerns over pharmaceutical demands for access to government health insurance, labor rights for workers at Vietnamese state-owned enterprises and the stewardship of Peru’s rain forests.As for the Pacific trade deal, many issues remain, including access to Japanese auto and agriculture markets, Australian concerns over pharmaceutical demands for access to government health insurance, labor rights for workers at Vietnamese state-owned enterprises and the stewardship of Peru’s rain forests.
“I’m going to work harder than ever to bring about a real confrontation on these issues,” said Representative Sander Levin of Michigan, the ranking Democrat on the House Ways and Means Committee and a leading critic of the Pacific trade agreement. “I don’t look on this as the end of the discussion.”“I’m going to work harder than ever to bring about a real confrontation on these issues,” said Representative Sander Levin of Michigan, the ranking Democrat on the House Ways and Means Committee and a leading critic of the Pacific trade agreement. “I don’t look on this as the end of the discussion.”