Grassley said the Quaker Oats plant in Cedar Rapids provides a good example of the positive difference that Trade Promotion Authority can make. If the United States could establish trade agreements with certain Latin American countries, then Quaker Oats would be in a better position to export its products there. Greater exports could enhance sales and help create additional jobs beyond the 1,300 Quaker Oats workers already in Cedar Rapids.
On Capitol Hill, Grassley said "bipartisan support for trade promotion authority is the key to greater market access, the creation of new and better-paying jobs, and more prosperity for Americans."
A long-time proponent of free and fair trade, Grassley also emphasized that world trade and U.S. leadership mean more opportunities for developing and poor nations. "World trade creates economic ties and, in turn, economic and political stability. World trade also can lift poor nations from poverty. It leads to a more peaceful and prosperous world," Grassley said.
Senators debated the comprehensive trade bill for 18 days. The final package includes Trade Promotion Authority, Trade Adjustment Assistance and the Andean Trade Preferences Act. A detailed description of the package follows this news release.
"Trade promotion authority is very important for removing remaining barriers to exports of Iowa goods and services," Grassley said. "While the United States sits on the sidelines, foreign competitors are forging ahead and pursuing their own market-opening agreements. Today's bill will help put us back in the game."
Formerly known as fast-track, trade promotion authority would allow the President to negotiate trade agreements with expedited procedures for implementing legislation. Under this authority, Congress agrees to consider legislation to implement the trade agreements under a procedure with mandatory deadlines, no amendments and limited debate. The President is required to consult with congressional committees during negotiation and notify Congress before entering into an agreement. The President was granted this authority almost continuously from 1974 to 1994, but the authority lapsed and has not been renewed.
In 2000, Iowa sold more than $3.3 billion worth of exports to more than 150 foreign markets. The number of Iowa companies exporting increased 83 percent from 1992 to 1998, and more than 75 percent of the 2,732 Iowa companies that export are small- and medium-sized businesses. In 1999, Iowa ranked second nationwide in agricultural exports, with an estimated $3.2 billion in exported commodities and value-added agricultural products.
The House of Representatives approved its version of trade promotion authority last December. The Senate version of trade promotion authority, written by Grassley and Sen. Max Baucus of Montana, is similar, but it adds key provisions on anti-dumping laws, labor rights and congressional consultation.
The conference committee charged with reconciling the trade bills passed by the Senate and House is expected to meet over several weeks. Grassley predicted today that final action in Congress would come sometime this summer.
Grassley is the top Republican and Baucus is the chairman of the Senate committee responsible for all trade legislation.