US President Donald Trump has asked Congress to extend trade authorities procedures for a further three years, in a move he claims would help drive new and better trade deals.
Trade promotion authority allows the President to negotiate trade agreements that Congress must approve or reject within a specific timeframe but may not amend.
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In a message earlier this week, Trump said an extension is “essential” to demonstrate to the US trading partners that his administration and Congress share a common goal when it comes to trade.
“As noted in the 2018 Trade Policy Agenda, my administration has launched a new era in American trade policy, driven by a determination to use the leverage available to us as the world’s largest economy to open foreign markets, and to obtain more efficient global markets and fairer treatment for American workers,” he said. “One of the major pillars supporting my trade policy is the pursuit of better trade deals.”
TPA is currently scheduled to expire on 30 June but will be extended through 30 June 2021, unless either the House or Senate adopts a resolution of disapproval.
While such a resolution would typically be considered unlikely with the president’s party controlling both chambers, international trade law firm Sandler, Travis & Rosenberg, notes some Republicans have voiced concern that the Trump administration has “not fully adhered” to the negotiating objectives in the current TPA law with respect to some of the proposals it has put forward in the NAFTA talks.
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By GlobalDataIn addition, leaders of the New Democrat Coalition, which they noted was “integral” to the last congressional approval of TPA in 2015, expressed scepticism this week about a possible extension, the firm says in its Trade Report published today (23 March).
“As you know, my Administration is pursuing the renegotiation of the North American Free Trade Agreement (NAFTA) — something many have promised but have failed to deliver,” Trump added. “In addition, my Administration is exploring potential trade agreement partners, including in Africa and Southeast Asia.
“I hope my Administration can continue to work with the Congress to pursue new and better trade deals for America’s workers, farmers, ranchers, and businesses.”
Meanwhile, Trump appears to have capitulated on his pledge to impose import tariffs on steel and aluminium from the European Union and six other countries.
US trade representative Robert Lighthizer reportedly told a Senate committee hearing that the EU will be exempt from the tariffs, along with Australia, South Korea, Brazil, Argentina, Mexico and Canada, according to the BBC.
The tariffs of 25% on steel and 10% on aluminium were due to come into force today (23 March).
Trump set to waive metal tariffs for EU and six other countries
In retaliation, China has slapped tariffs on US$3bn of American imports with plans to impose import tariffs of 15% on 128 US imports including fresh fruit, dried fruit and nut products, wine, ginseng and steel pipes, which according to the Ministry of Commerce amounted to $977m in 2017. The statement did not go into greater detail so it is not yet known if apparel and textiles are included on the list.
Steel spat escalates as China slaps tariffs on $3bn of US imports
