Senators' deal gets trade bill rolling again

Vote in chamber set first on measures Democrats sought

Sen. Sherrod Brown, D-Ohio, a leading opponent of President Barack Obama’s measure to speed approval of trade deals, expressed concern Wednesday about how much time will be allowed for debate on the legislation.
Sen. Sherrod Brown, D-Ohio, a leading opponent of President Barack Obama’s measure to speed approval of trade deals, expressed concern Wednesday about how much time will be allowed for debate on the legislation.

WASHINGTON -- Senate leaders agreed on a deal to move forward with President Barack Obama's legislation to speed approval of trade agreements Wednesday, a day after the bill was blocked by members of the president's party.

The Senate will hold votes today on two related bills sought by Democrats, including one to prevent currency manipulation. Then, the chamber will decide whether to advance Obama's measure for fast-track approval of foreign trade agreements.

Senate Majority Leader Mitch McConnell, R-Ky., called the agreement reached Wednesday "a sensible plan."

"We've come up with something that is fair," said Minority Leader Harry Reid, D-Nev.

The breakthrough doesn't assure Obama of receiving fast-track negotiating authority, which would let him send to Congress trade proposals it can kill or ratify, but not amend. That's still subject to Senate and House debates, amendments and votes.

But the breakthrough was a positive sign for the White House after Tuesday's setback, which was driven entirely by Democrats. They blocked the president's legislation from moving forward in a procedural vote, because Republicans didn't include companion measures the Democrats sought.

They wanted to include three other bills with the fast-track legislation as part of a trade package. One would have provided trade-adjustment assistance for workers who lost their jobs because of international trade; a second would have included measures to crack down on currency manipulation, which makes it easier for countries to export goods at lower prices to the U.S.; and a third included provisions for trade with Africa.

Many Democrats remain stung by the 1994 North American Free Trade Agreement, which is blamed by labor unions for a decline in U.S. manufacturing jobs. Labor unions and liberal groups strongly oppose fast-track authority.

But many members of the party said they would support the deal worked out Wednesday.

"It's going to pass," said Sen. Bill Nelson, D-Fla., regarding the fast-track legislation.

The currency measure pushed by Sen. Charles Schumer, D-N.Y., is opposed by the Treasury Department.

Schumer said the provision also was likely to draw a presidential veto, threatening to kill the fast-track legislation if it were included in that measure. Considering it separately may ease the way to passing the trade bill Obama wants, he said.

Schumer has repeatedly pushed for stronger action against countries -- notably China -- that drive down the value of their currencies to make exports more competitive.

White House spokesman Josh Earnest said this week that "we believe that we have a variety of effective mechanisms already that allow the administration -- as we've effectively done when it comes to China and Japan -- to protect the interest of the United States and our economy when it comes to currency policy."

In his latest bid, Schumer inserted into a customs bill a provision that would let the Commerce Department penalize imports from countries that manipulate exchange rates.

The Treasury Department said the provision would expose the U.S. to retaliation and could violate U.S. obligations under existing trade agreements. The department prefers to address currency issues in other talks, led by finance ministers.

Sen. Debbie Stabenow, a Democrat from Michigan, which has suffered manufacturing job losses attributed by some to NAFTA, said she would co-sponsor an amendment with enforceable provisions on currency manipulation.

"It is our responsibility on behalf of American businesses and workers and communities to tell the administration what we expect them to fight for on behalf of the people of our country," Stabenow said.

AFL-CIO President Richard Trumka called on Democrats to continue to insist on combining the currency measure into the fast-track trade bill.

"Anything less leaves America's workers, domestic producers and communities behind," Trumka said in a statement Wednesday.

Under Wednesday's agreement, the Senate will vote first on the currency bill, and then on a bill to renew the African Growth and Opportunity Agreement. Those bills drew less debate in the Senate Finance Committee than did the fast-track bill.

After that, senators will begin the full-blown debate over the fast-track legislation.

Democratic Sen. Sherrod Brown of Ohio, who is leading opposition to the trade legislation, said all of the bills "aren't going to be together exactly the way I wanted it, I understand that."

Brown said his concern is how much time McConnell will allow for debate of the measures.

"I want there to be adequate time to debate," he said.

House Speaker John Boehner on Wednesday called the Democratic opposition to the trade legislation a "little bump in the road" and predicted the Senate ultimately will have enough votes to pass the measure.

"I expect we will act shortly thereafter," he said, referring to the Republican-led House.

Former U.S. Trade Representative Ron Kirk said Wednesday that Democratic opposition to the trade legislation isn't strong enough to prevent it from passing this year.

"I think there are enough Democrats who get it, who want to support the president," said Kirk, Obama's first trade ambassador.

Obama is seeking fast-track authority to gain the passage of a long-negotiated, 12-nation Trans-Pacific Partnership. Parties include Japan, Vietnam, Mexico and Canada, but not China. A proposed European trade agreement could follow, officials have said.

Trade officials said Japan and other trade partners will not make their best offers in negotiations unless fast-track provisions keep Congress from rewriting the plans.

On Wednesday, a U.S. official said the Obama administration expects to see additional support in Congress as more terms of the Trans-Pacific Partnership are made final.

The administration is close to completing the trade deal and will continue to move ahead on the next round of negotiations, which will take place in Guam beginning Friday, said the official, who spoke on condition of anonymity, citing policy.

U.S. negotiators are working on separate sections to boost environmental protections and aid small- and medium-size businesses, the official said.

Information for this article was contributed by Heidi Przybyla, James Rowley, Kathleen Miller, Carter Dougherty, Billy House, Brian Wingfield and Sangwon Yoon of Bloomberg News and by Charles Babington of The Associated Press.

A Section on 05/14/2015

Upcoming Events