The Coalition for a Prosperous America supports the “Trade Act of 2008”.  The Senate version is S. 3083 was introduced by Senator Brown and co-sponsored Senators Dorgan, Feingold, Casey, and Whitehouse.  The House version is H.R. 6180 was introduced by Representative Michael Michaud and co-sponsored by 67 Representatives (* listed at the end of this statement).

The bills include positive provisions on core labor, environmental and public safety, and food and product standards.  They have good provisions on the trade and services issues, including restrictions on the bargaining away of state and local government procurement.  Foreign investment, intellectual property protection, and agricultural standards are nicely handled.  The bills’ trade remedies, rules of origin, dispute settlement and enforcement (requiring public proceedings, among other things), technical assistance, and national security exceptions are also positive. 

A major advancement is the Bill’s efforts to strengthen the sovereignty and the rights of states and local governments.

CPA believes that it is rational for the GAO to complete a comprehensive review of all trade agreements by June 30, 2010.  The bills do so.  The GAO report must include specific recommendations for changes that would be needed to bring those trade agreements into compliance with new negotiating objectives.  CPA supports that approach.

The Trade Act would require the Administration to submit a plan to Congress for bringing existing agreements into compliance with the new objectives.  The timing of this report is linked to the initiation of new trade negotiations for the submission of the implementation bill to Congress, which CPA believes a positive approach.

A Congressional Trade Agreement Review Committee would be established, under the Bill, to review the GAO report and the President’s plan.  The CTARC would be a joint committee composed of the chairman and ranking members of ten House and Senate permanent committees.  Broadening Congressional involvement beyond the Ways and Means and Finance Committees recognizes the reality that trade agreements now typically contain highly technical provisions that go well beyond the normal purview of the revenue committees. 

CPA acknowledges there are some bills introduced by Representatives English and Altmire and Senators Baucus and Hatch.  However, CPA believes those bills contain little of real value in terms of our trade reform objectives. 

Improvements in S. 3083 and H.R. 6180 could include addressing the equities that arise from trading partner border tax adjustments.

CPA’s most significant concern with the bills are their currency provisions.  The currency portions of the bills may be a step backwards in that it would require future agreements to establish “safeguard remedies” to offset currency misalignment.  The good news is that the provision would require that the agreements give each party the automatic right of action (i.e., without prior dispute settlement).  However, the provision is operative only in agreements containing trade remedy provisions; this is normally taken to mean anti-dumping and countervailing duty remedies that are not normally dealt with bilaterally.  In addition, by using the phrase “deliberately misaligned,” the provision reintroduces the element of intent that the Banking Committee and Ways and Means have been trying to write out of U.S. law.  The currency language should be changed. 

CPA believes S. 3083 and H.R. 6180 very positive steps towards meaningful trade reform.

*  List of House co-sponsors
 
Rep Allen, Thomas H. [ME-1]
Rep Arcuri, Michael A. [NY-24]
Rep Baldwin, Tammy [WI-2]
Rep Boyda, Nancy E. [KS-2]
Rep Brady, Robert A. [PA-1]
Rep Braley, Bruce L. [IA-1]
Rep Carnahan, Russ [MO-3]
Rep Carney, Christopher P. [PA-10]
Rep Chandler, Ben [KY-6]
Rep Cleaver, Emanuel [MO-5]
Rep Conyers, John, Jr. [MI-14]
Rep Davis, Danny K. [IL-7]
Rep DeFazio, Peter A. [OR-4]
Rep Delahunt, William D. [MA-10]
Rep DeLauro, Rosa L. [CT-3]
Rep Dingell, John D. [MI-15]
Rep Doyle, Michael F. [PA-14]
Rep Ellison, Keith [MN-5]
Rep Filner, Bob [CA-51]
Rep Gordon, Bart [TN-6]
Rep Green, Al [TX-9]
Rep Green, Gene [TX-29]
Rep Grijalva, Raul M. [AZ-7]
Rep Hall, John J. [NY-19]
Rep Hare, Phil [IL-17]
Rep Hastings, Alcee L. [FL-23]
Rep Higgins, Brian [NY-27]
Rep Hinchey, Maurice D. [NY-22]
Rep Hirono, Mazie K. [HI-2]
Rep Holden, Tim [PA-17]
Rep Jackson, Jesse L., Jr. [IL-2]
Rep Johnson, Henry C. "Hank," Jr. [GA-4]
Rep Jones, Walter B., Jr. [NC-3]
Rep Kagen, Steve [WI-8]
Rep Kanjorski, Paul E. [PA-11]
Rep Kaptur, Marcy [OH-9]
Rep Kildee, Dale E. [MI-5]
Rep Kilpatrick, Carolyn C. [MI-13]
Rep Kucinich, Dennis J. [OH-10]
Rep Lee, Barbara [CA-9]
Rep Lipinski, Daniel [IL-3]
Rep Loebsack, David [IA-2]
Rep Lynch, Stephen F. [MA-9]
Rep McCollum, Betty [MN-4]
Rep Moore, Gwen [WI-4]
Rep Murphy, Patrick J. [PA-8]
Rep Murtha, John P. [PA-12]
Rep Oberstar, James L. [MN-8]
Rep Pallone, Frank Jr. [NJ-6]
Rep Peterson, Collin C. [MN-7]
Rep Rahall, Nick J., II [WV-3]
Rep Rodriguez, Ciro D. [TX-23]
Rep Ross, Mike [AR-4]
Rep Rothman, Steven R. [NJ-9]
Rep Ryan, Tim [OH-17]
Rep Sanchez, Linda T. [CA-39]
Rep Sarbanes, John P. [MD-3]
Rep Schakowsky, Janice D. [IL-9]
Rep Shea-Porter, Carol [NH-1]
Rep Shuler, Heath [NC-11]
Rep Solis, Hilda L. [CA-32]
Rep Stupak, Bart [MI-1]
Rep Sutton, Betty [OH-13]
Rep Tierney, John F. [MA-6]
Rep Visclosky, Peter J. [IN-1]
Rep Wilson, Charles A. [OH-6]
Rep Woolsey, Lynn C. [CA-6]