Republicans Open to Giving Obama 'Fast-Track' Trade Authority

Both sides of the Capitol were witness to an unusual scene Tuesday, as Republicans praised the efforts of a member of the Obama administration while Democrats looked on with skepticism.

U.S. Trade Representative Michael Froman testified before the Senate Finance Committee in the morning before crossing the rotunda to face questioning in front of the House Ways and Means Committee on the Trans-Pacific Partnership, a trade deal involving 12 countries that has been under negotiation since 2005.

Republican majorities in both committees sounded amenable to granting President Barack Obama the trade promotion agreement he pushed for during the State of the Union address last week — an approval considered essential to reaching a deal.

Under the so-called “fast-track” authority, Congress can set the terms under which the U.S. negotiates but would strip the legislative branch of the ability to either filibuster or amend a trade agreement and require lawmakers to take an up-or-down vote.

“When the United States sits down at the negotiating table, everybody at that table has to trust us,” said House Ways and Means Chairman Paul Ryan, R-Wis. “They have to know the deal the administration wants is the deal Congress wants. … We can’t be negotiating with ourselves, we have to maintain a united front.”

The economies of the 12 countries involved in the TPP — Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam — comprise 40 percent of the global economy and a third of the world’s trade.

Proponents of the partnership said the deal is critical to opening new markets for U.S. products, to strengthening manufacturing, encouraging job growth and protecting intellectual property.

“Ultimately, it puts us in the driver’s seat in terms of setting the rules of the road,” Froman said.

But Democrats, some of whom have long expressed vehement opposition to the TPP and the fast-track authority, said negotiations have been conducted under a veil of secrecy and could result in a deal that encourages job outsourcing.

“The fast-track procedure is designed to limit public scrutiny; it gives up congressional constitutional authority to review the TPP,” said Rep. Rosa DeLauro, D-Conn., a leading opponent of the TPA, in a statement following the State of the Union address.

Members from both sides of the aisle sought increased transparency, asking Froman to grant them and their approved staff members more time to examine documents related to the negotiations.

Supporters of the deal say a free-trade agreement in the Pacific will put pressure on China on the global market, while requiring high standards among members.

But the Obama administration’s refusal to label China a currency manipulator has stoked fears the deal won’t put enforceable rules in place to prevent countries from artificially deflating prices of their products, disadvantaging U.S. exports and encouraging manufacturers to move jobs overseas where environmental and labor regulations are looser.

And Sen. Ben Cardin, D-Md., said he worried whether three of the countries — Brunei, Malaysia and Vietnam — are serial human rights abusers who cannot be counted on to comply with labor standards.

Others are concerned the rules strengthening intellectual property protections would run afoul of open Internet principles and stifle innovation.

With strong Republican support, an eventual vote on the fast-track authority will likely succeed in the House, but Iowa Sen. Chuck Grassley, the No. 2 Republican on the Finance Committee, said he expected a struggle to get 60 votes needed to pass without threat of filibuster in the upper chamber.

"I can't support a TPP agreement if we do not at the same time enact new statutory law that includes objective criteria to define and enforce against currency manipulation," said Sen. Chuck Schumer, D-N.Y.

Minority Leader Harry Reid, D-Nev., has also said he would oppose the deal.

But House Democrats say their support will depend a lot on the process and how transparent the administration is in the ongoing negotiations.

“The administration needs to work with members of both sides of the aisle to make sure that the process is transparent and members are fully aware of what’s being included,” said House Democratic Whip Steny Hoyer, D-Md. “Steps are being taken to raise the confidence and, if that occurs, I think it’s possible for a significant number of members to support both TPA and TPP.”