Ag Policy Blog

Attention Turns to House on TPA After Senate Passage

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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Agricultural groups praised the Senate for its Friday evening vote approving Trade Promotion Authority for President Barack Obama as everyone from the president to the American Farm Bureau called on the House to follow suit quickly with its own legislation.

The Senate voted 62-37 on Friday evening to pass Trade Promotion Authority, which would give the White House a better chance to reach a final agreement on the 12-country Trans-Pacific Partnership. The House will not take up the bill until it returns from its Memorial Day break.

Thirteen Democrats sided with 49 Republicans to back the bill in the Senate.

Senate Finance Chairman Orrin Hatch, R-Utah, said the bill "will boost export opportunities for American farmers, ranchers, and businesses and support more higher-paying jobs here at home. Hatch called TPA a critical trade tool.

“As the leader of the global trading system, the United States envisions a market that promotes American economic opportunity. No complex, economically significant trade agreement has ever been negotiated by any administration and approved by Congress without Trade Promotion Authority," Hatch said.

President Obama said the vote was a step toward negotiating a trade deal that would enforce high standards for areas such as labor and environmental protection.
"If done right, these agreements are vital to expanding opportunities for the middle class, leveling the playing field for American workers, and establishing rules for the global economy that help our businesses grow and hire by selling goods Made in America to the rest of the world," the president said.

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Agriculture Secretary Tom Vilsack noted more than 70 agricultural organizations, as well as agriculture secretaries going back to the Carter administration all supported TPA because export sales are vital for U.S. agriculture. Last year, agricultural exports totaled more than $150 billion. "Standing still is not an option," Vilsack said. "Our farmers and ranchers face exorbitant tariffs and others barriers in important foreign markets, and if we do not act to maintain and gain market share in these places, our competitors will. U.S. agriculture's interests are best served by ensuring America is at the table with strong negotiating authority."

Bob Stallman, president of the American Farm Bureau Federation, said U.S. lead the world in agricultural exports and TPA offers a chance for that growth to continue.

“Congressional support is critical to breaking down trade barriers and completing ambitious new trade agreements like the Trans-Pacific Partnership," Stallman said. "TPA streamlines negotiations and strengthens our position at the bargaining table. We urge the House now to act swiftly in passing trade promotion authority to protect the future of agricultural trade."

Texas farmer Wade Cowan, president American Soybean Association, underscored the need for quick approval of TPA:

“The Senate took the first step today to ensure that the success of American farmers in international markets can continue. For the past fifteen years, soybean farmers have been the leading ambassadors for American agriculture overseas, in large part due to the ability of USTR to craft agreements that maximize access for our products in markets around the world. Since 2007, however, our ability to maintain this role has been hampered by the absence of Trade Promotion Authority. In that time, despite valiant efforts by USTR, we haven’t been able to be as aggressive in crafting new agreements as our competitors in South America, which have caught up and, in some cases, eclipsed us.

Wyoming rancher Philip Ellis, president of the National Cattlemen’s Beef Association, said Friday night's vote was a "clear indication of the support that exists nationwide for future free trade agreements. The U.S. market is already one of the most open markets in the world, and to continue to grow demand for U.S. beef, we must continue to negotiate tariff elimination worldwide. I urge the House to follow the lead of the Senate and pass Trade Promotion Authority legislation.”

Chip Bowling, a Maryland farmer and president of the National Corn Growers Association, thanked senators for voted for the bill.. “This legislation is critical to removing trade barriers, expanding our access to global markets, and ensuring farmers get the best possible trade agreements.”

The National Milk Producers Federation and U.S. Dairy Export Council commended the Senate, but also urged members of the House of Representatives to quickly pass their own legislation.

“Trade promotion authority is crucial to concluding trade agreements that will open foreign markets to more U.S. dairy products,” said NMPF President and CEO Jim Mulhern. “In the Trans-Pacific Partnership negotiations in particular, having TPA in place is essential to increase pressure on Japan and Canada to extend their best offers.”

USDEC President Tom Suber added, “Knowing that a trade agreement will be considered by Congress under Trade Promotion Authority paves the way to press our negotiating partners to make their best offers on the most sensitive issues. Clearly, dairy exports fall into that category, and the U.S. needs all the tools it can muster to get the best possible deal.”

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on Twitter @ChrisClaytonDTN.

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