The vast majority of the world’s consumers don’t live in the United States. Many of those individuals already use products made in the United States. Why not even more products? That’s the premise behind work to open new markets to U.S.-made goods and services.
Iowa farmers, manufacturers and services providers have long known that their corn, soybeans, pork, beef, agricultural equipment, insurance products and much more are successfully exported around the world. Many of them would like the chance to reach new markets as the United States enters trade agreements with other countries. Trade agreements mean lifting tariffs and other barriers on both sides, so exports and imports flow freely. U.S. manufacturers might get a better deal on foreign-made components needed for their manufacturing in the United States. Farmers might be able to ship commodities to countries that previously have been closed to U.S. goods.
The executive branch negotiates trade agreements on behalf of the United States, working to make sure U.S. interests are fairly represented at the negotiating table. Unfortunately, the development of new markets for U.S. products has stalled in recent years. Part of the reason is the lapse of a tool that helps U.S. negotiators seal the deal. This tool is Trade Promotion Authority, a formal process for considering trade agreements in Congress once the agreements are signed by the United States and a trading partner.
Trade Promotion Authority can give the United States a stronger position at the negotiating table than without it. Potential trade partners know a trade agreement will hold because it’ll have the full force of the United States behind it.
Trade Promotion Authority also preserves a clear role for the legislative branch. Congress has the ultimate say with an up or down vote on any agreement negotiated and presented by the executive branch. That doesn’t absolve Congress of any responsibility to review trade agreements. The opposite is true. Congress needs to review them the way it would review anything else presented from the executive branch as a co-equal branch of government.
For example, Congress should verify that the trade agreements give U.S. producers fair treatment compared to our trading partners. Some countries reportedly have been slow to eliminate tariffs on certain U.S. agricultural products in the Trans-Pacific Partnership Agreement under discussion, and a final agreement with those market access barriers would be hard for me to support. Trade Promotion Authority, if re-instated, should give U.S. negotiators the backing needed to finish the Trans-Pacific Partnership Agreement in a positive way for U.S. farmers and other U.S. interests.
Trade expansion has the potential to support jobs and investment in the United States. The Finance Committee, where I’m former chairman and now a senior member, will consider Trade Promotion Authority legislation this week. That’s good news for U.S. farmers and businesses.