Sen. Chuck Grassley, the top Republican on the Finance Committee and a long-time proponent of free trade, said the bipartisan show of support for trade promotion authority was an important step closer to restoring America's historic leadership on trade. "In Iowa and across the country, manufacturers, farmers and those in the service industries know that TPA is the key to greater market access, the creation of new and better-paying jobs, and more prosperity for Americans," he said.
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.
A procedural maneuver on the Senate floor affected today's committee process. Sen. Robert Byrd of West Virginia invoked a Senate rule that prohibits committees from meeting two hours after the Senate convenes. Because of the time limit, Finance Committee members voted to approve the trade promotion authority legislation subject to amendment. It is uncertain whether or not amendments will become part of the bill before it is taken up by the full Senate. Grassley said the Senate should consider the legislation as soon as possible this year or next.
According to government officials, Iowa sold more than $3.3 billion worth of exports to more than 150 foreign markets last year. 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.
"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.
The House of Representatives approved its version of trade promotion authority last Thursday by a vote of 215 to 214. 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.