As we advance into the 21st Century, being able to compete economically with other nations is vital to the future of this country. With 95 percent of the world's consumers living outside the United States, favorable trade agreements would open doors to our farmers and manufacturers in Arkansas for easier access to billions of new customers.
Currently, trade supports more than 38 million--one in five--American jobs. The United States is currently pursuing several trade agreements, including the Trans-Pacific Partnership (TPP) in the Asia-Pacific region, and the Trans-Atlantic Trade and Investment Partnership (T-TIP) in Europe, which would give the United States access to about one billion more customers.
Passing Trade Promotion Authority (TPA) is the first step to opening up markets to American goods and services, which will grow the economy and lead to more jobs, while simultaneously decreasing our trade deficit. TPA guarantees America the strongest possible hand at the negotiating table, while creating an open and transparent process and holding the president and his negotiators accountable to Congress and the American people.
Every president since FDR--both Republican and Democrat--has had TPA or similar authority to negotiate trade deals. TPA is not a specific trade deal; it is a process to direct the negotiation and consideration of a trade deal. TPA sets congressional parameters on ongoing and future trade negotiations by outlining Congress' negotiating objectives and authorizing aggressive congressional oversight over the process. If the administration has met all of its TPA obligations, TPA provides a streamlined procedure for Congress to vote on a trade agreement.
There has been a lot of public concern and misinformation surrounding TPA and the trade deals currently being negotiated, with one of the biggest concerns being that TPA grants the president new or additional executive authority or allows him to unilaterally change the law. This is simply not true. In fact, TPA empowers Congress in trade negotiations. The president currently has constitutional authority to negotiate trade deals, but only Congress has the authority to implement or enforce trade deals.
TPA puts Congress in the driver's seat at the negotiating table as well. TPA outlines 150 congressionally directed negotiating objectives for the administration to follow, including provisions to prevent the administration from seeking legislative changes to climate or immigration laws. TPA also requires robust consultation with Congress throughout the negotiating process and affirms that Congress has the final say in approving and implementing trade agreements. If the administration fails to meet any of its TPA requirements, Congress can turn off TPA, the "fast-track" rules.
TPA only creates the process for negotiating and considering trade deals; a vote for TPA is not a vote on a trade agreement. What a vote for TPA does, however, is increase the transparency in the negotiating process, and for the first time, TPA will require the president to make any trade agreement public for 60 days before it can be submitted to Congress for a vote, so there will be no vote on any secret provisions. TPA will create a level of accountability and transparency that protects the interests of the American people.
Trade supports more than 340,000 jobs in Arkansas. According to Business Roundtable, in 2013 Arkansas exported $8.8 billion in goods and $2 billion in services. With 8.8 percent of Arkansas' $124.2 billion gross domestic product dependent on foreign markets, trade continues to drive growth in our state's economy.
Trade is especially important for Arkansas agriculture. In 2013, the most recent year for verified agricultural data, Arkansas exported almost $4.1 billion in agricultural products, with the top three products being soybeans ($948.6 million), rice ($906.8 million), and poultry ($645.9 million). That same year, Arkansas produced around $10 billion of agricultural products, meaning more than 40 percent of Arkansas farmers' production was exported.
TPA is necessary to advance negotiations for the TPP, which would give Arkansas agriculture, as well as other Arkansas businesses, improved market access to 11 mostly Pacific Rim countries. Implementation of TPP would improve access for U.S. poultry products into Canada, significantly reduce tariffs from 38.5 percent (to a reported 9 percent) on U.S. meat products into Japan over the next 10-15 years, and lessen the limitations on forest products, where tariffs are currently as high as 40 percent in some countries.
From the viewpoint of Arkansas agriculture, TPA is not a political issue. It is an economic issue.
Trade deals are not about disadvantaging America. Trade deals are about prying open new markets and promoting American products, increasing jobs in our country, increasing exports, and increasing our nation's wealth. This is the type of good government the American people expect from Washington. It is Congress working with the White House to strengthen America's position in the world, allowing America to write the rules for the 21st Century instead of countries like China.
This is why TPA is critical to the future of Arkansas.
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U.S. Rep. French Hill represents Arkansas' 2nd District. Randy Veach is president of the Arkansas Farm Bureau.
Editorial on 06/19/2015