Problems mount for White House in push for Trans-Pacific trade pact

Friday, 15 November 2013 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: A White House push for a freer hand to clinch trade deals ran into a roadblock on Wednesday as two-thirds of Democrats in the House of Representatives stated their opposition, complicating efforts to finalise a pact with 11 Pacific Rim countries.

Obama administration officials have argued that Trade Promotion Authority, which would prevent Congress from amending trade deals, is needed to assure trade partners that any agreements will not be reopened. Without it, securing trade deals becomes more difficult. In a letter to President Barack Obama, 151 House Democrats said there had not been enough consultation between the administration and Congress over the proposed Trans-Pacific Partnership, or TPP pact. “Given our concerns, we will oppose ‘fast track’ Trade Promotion Authority or any other mechanism delegating Congress’ constitutional authority over trade policy that continues to exclude us from having a meaningful role in the formative stages of trade agreements and throughout negotiating and approval processes,” the lawmakers said. The letter was the latest sign of trouble for the administration’s hopes of securing a TPP deal by the end of the year. The lack of Trade Promotion Authority could also be a problem for Washington’s ongoing talks on a free trade pact with the European Union. The Obama administration said Congress could maintain a strong role in influencing trade policy by passing the trade promotion law. “We will continue to consult with Congress on the importance of TPA as a longstanding tool for shaping US trade policy on behalf of the American people,” US Trade Representative Michael Froman said in a statement. The administration has asked Congress to quickly pass TPA, but no legislation has been put forward in either the Republican-controlled House or the Democratic-controlled Senate. The TPP, which would include Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam in addition to the United States, would establish a free-trade bloc stretching across a region that makes up nearly 40% of the global economy. The negotiations, which have been going on for three years, have been mired in controversy over a lack of transparency and slowed by the conflicting interests of the negotiating countries, US lawmakers and advocacy groups. Previously, 230 US House members and 60 senators had written to the administration to demand that any deal ensures member countries do not engage in unfair currency practices that could hurt the US economy.