Q: What is Trade Promotion Authority (TPA)?
A: The Constitution grants Congress the authority to broker trade agreements involving international commerce. The Constitution also grants the President the authority to speak with foreign nations on behalf of the American people. So, the very nature of our Constitution requires a partnership between the executive and legislative branches of government in matters of international trade negotiations. That is what trade promotion authority is all about — a partnership between the executive and legislative branches of government to enable U.S. farmers and workers to be effectively represented at the negotiating table. It is a critical tool of U.S. trade policy, a tool we have been without since its expiration in 1994. Since then, United States has been sitting on the sidelines while other nations around the world continue to form trade partnerships and lucrative market alliances. That's because without this authority, any trade deal that gets hammered out at the bargaining table is then theoretically subject to the veto pen of 535 members of the U.S. Congress. This puts the United States at a woeful disadvantage during world trade talks because other countries understand that what the United States Trade Ambassador says may not be the final answer. As a result, U.S. efforts to expand trade alliances around the world to help grow the American economy have stalled. Considering the current downturn in the U.S. economy, Congress has a pivotal opportunity to deliver an important tool to help jump-start a recovery and sustain job-creating growth in American agricultural, manufacturing, financial and other service industries. Consider that the United States last year exported more than $780 billion in goods and services to more than 200 foreign markets. Exports provide more than one-fourth of all economic growth in America. Iowa plays an important role in world trade, by exporting a wide range of products to an astounding 154 countries. As the largest hog-raising, soybean and feed corn producing state, Iowa ranks second in the nation for agricultural exports. These exports provide more than 86,000 jobs in Iowa. We clearly can't afford to let our international trade ties wither on the vine. Thankfully, the momentum may finally exist to renew TPA. The U.S. House of Representatives passed trade legislation last fall. The Senate Finance Committee, which has jurisdiction over trade matters, passed the bipartisan legislation I authored out of committee in December by an overwhelming 18-3 margin. In January, I called upon the Senate Majority Leader to schedule a vote by the full Senate within the next month.
Q: Can you elaborate why you have compared the Marshall Plan after World War II to renewing trade promotion authority in 2002?
A: Free trade is not just a matter of economics. It's also a key tool to U.S. foreign policy. The tragic events of Sept. 11 exposed horrific consequences that arose from an equation of isolationism, poverty and fanaticism. Market-opening trade deals with Third World countries, like Afghanistan, not only present a golden opportunity for the United States government to increase American sales of U.S. goods and services abroad. They also can serve as a catalyst to bring stability and prosperity to oppressed nations of the world. In 1947, the United States didn't turn its back on post-war Europe. Instead, the U.S. put its money where its mouth was and offered massive aid and economic development to help get the European economy back on its feet. Half a century later, vigorous efforts to forge free trade alliances between the United States and developing countries could help foster respect for the rule of law, competition and free-market principles in poor nations. The U.S.-led war on terrorism adds an element of urgency to renew the president's trade promotion authority. We need to keep up strong, international economic leadership and bring more nations of the world into democracy and prosperity. Trade can helps us do that. Congress ought to pass trade promotion authority early this year to help launch economic growth at home, create new jobs, and fight poverty and terrorism overseas.