Talks on Trade Agenda Narrow Differences, Final Agreement Not Yet Reached

Senate Republican Leader Mitch McConnell on July 21 urged President Obama to transmit the implementing bills for the FTAs with Korea, Colombia and Panama even though he said Congress would not have time to complete action on the agreements until after the August break. The administration responded by saying it first needed more assurance that Trade Adjustment Assistance (TAA) will be extended. The exchange reveals that intensifying negotiations this week have narrowed differences but that mistrust persists and an agreement on how to proceed has not been finalized. The U.S. Chamber continues to emphasize the urgent need for action and the business community's support for the compromise TAA bill negotiated by House Ways and Means Chairman Dave Camp, Senate Finance Chairman Max Baucus, and the White House.

"I think the administration should submit them anyway as a show of good faith with our trading allies in Korea, Colombia, and Panama. Then we can work to pass them when we return," McConnell said in a speech on the Senate floor. McConnell insisted that he remains "as committed as ever to passing these job-creating agreements into law as quickly as possible given the condition of our economy. As I see it, every sticking point seems to have been resolved." He further claimed that an "agreement on the process" has been reached, and said: "I myself am personally committed to working with Senator Reid to ensure a fair floor process for my members so they have an opportunity to try to amend a standalone Trade Adjustment Assistance bill separate from the three free trade agreements. That way, if the administration can generate the votes it needs, the TAA bill will pass on its merits. So I think we've got a pretty clear path in front of us at this point."

The Obama administration responded that it wanted a detailed commitment from congressional leaders that the TAA legislation would get a vote when the trade deals are considered. An administration official told the press: "We're ready to move. The announcement by a number of Senate Republicans supporting passage of TAA is a welcome development. What's needed now is a commitment on specifics from the leadership of both houses for a viable process for the passage of the three FTAs and TAA. We're in active discussion with congressional leaders. We hope we can reach agreement as soon as possible."




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