Fast-track for TPP passed narrowly but Trade Adjustment Assistance voted down

TPP 'will remain stuck in limbo'

A former New Zealand trade official says the Trans-Pacific Partnership will remain stuck in limbo until American can politicians pass legislation designed to fast-track its signing.

Radio NZ,

13 June, 2015, 10 am NZT

The US House of Representatives has narrowly passed the fast track authority, but another measure on aid measures for workers who lose their jobs because of the free trade deal, was defeated.

Both changes must be approved to pass the bill.

The Pacific Rim trade deal would cover 40 percent of the world's economy, including New Zealand.

Executive director of the New Zealand International Business Forum Stephen Jacobi said while it was a blow, there was still a chance the legislation could still be passed next week.

He said the two pieces of legislation could be split up so they would not have to be passed together.

"The fact of the matter is the Democrats have just scored an amazing own goal."

White House spokesperson, Josh Earnest, says it was important for Republicans and Democrats to agree on trade adjustment, but the White House was pleased the House advanced the "fast-track" measure.

A House Republican aide said Republican leaders hoped to try again next week to pass the worker aid portion of the bill.

Meanwhile, America's House of Representatives voted to repeal a law requiring meat from other countries to be labelled as foreign.

New Zealand has opposed America's country of origin labelling on meat, saying it would be a potential trade restriction.

The cave-in by US legislators was because they were trying to head off trade retaliation by their neighbours Canada and Mexico.

Both countries were preparing to impose billions of dollars in tariffs on American foods because of the labelling.

Earlier this year, a World Trade Organisation panel ruled that specific origin labels on beef, chicken and pork discriminate against imported livestock.

New Zealand does not have mandatory country of origin labels for meat.

Congress still needed to repeal the law.

House passes Obama's 'fast-track' authority to negotiate trade deal

RT,

12 June, 2015

President Barack Obama has succeeded in obtaining controversial “fast-track” approval for his Trans-Pacific Partnership (TPP) trade deal in the House of Representatives.

The Trade Promotion Authority (TPA), as the “fast-track” powers are officially called, passed by a vote of 219-211, giving President Obama an unlikely victory. In a preceding vote, the House struck down a proposal to extend the Trade Adjustment Assistance (TAA) program, providing assistance to workers who would lose jobs as a consequence of trade deals.

Update: House will RECONSIDER TAA next week. The TPA vote that just happened counts IF TAA passes. Up to WH to twist arms.

— Pete Schroeder (@peteschroeder) June 12, 2015

With both the Senate and the House adopting “fast-track” authorization, Congress will only be able to vote on the finalized agreement, without the opportunity to offer amendments.

Many Democrats defied the President’s request to approve the TAA, contributing to the measure’s defeat with a 302-126 vote. After the TPA was approved, a motion was made to re-consider that vote, opening the possibility the House may approve TAA next week.

Readmore 'Profits over public health': Secret TPP Healthcare Annexpublished by WikiLeaks

First established in the 1970s, the TAA expires at the end of the current fiscal year. The proposed legislation, rejected today in the House, would extend the program through 2020 and expand the benefits to public and service sector workers. Only manufacturing sector workers, fisherman, and farmers are currently eligible for the program.

President Obama made the rare appearance on Capitol Hill earlier on Friday, holding hour-long talks with lawmakers and trying to persuade House Democrats into backing the bill. Obama has had a hard time persuading his party to support the deal, as the Democrats’ traditional voter base of unions and labor organizations came out strongly against it. Republicans, on the other hand, threw their support behind the TPP.

Readmore Corporations shell out $1.2mn in Senate contributions tofast-track TPP

The bill aims to implement the Trans-Pacific Partnership – a trade deal that would link 40 percent of the world's economy. Along with the United States, 11 other countries have taken part in TPP negotiations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The most notable issue about the TPP is that excludes China, and serves to counter its growing economic and diplomatic influence in the Asia-Pacific region.

While supporters of the TPP say it will open up new markets for American products, opponents have raised concerns over a number of issues, including currency manipulation, environmental protections, internet privacy, and transparency. Additionally, they say it will harm Americans workers, while any benefits it may produce will go to corporations.

The deal has also been criticized for lack of transparency, as the contents of the TPP has been kept in strict secrecy. Rumors that corporate lobbyists have been drafting the substance of the deal have been given a boost by recent leaked revelations that corporations would be allowed to sue governments in private courts over profits lost due to regulation.

Senator Elizabeth Warren (D-Mass.) proposed an amendment that would have struck down this arrangement, known as the Investor-State Dispute Settlement system (ISDS). Liberal Democrats have blasted the ISDS as a means corporations could use to undermine US laws.

The White House has argued that some degree of secrecy was necessary for negotiating a good deal, and that critics ought to point to specific issues in the TPP, as opposed to criticizing previous free trade pacts.

However, one former Obama campaign adviser who had clearance to access TPP drafts, wrote that disclosing anything from the documents would be a criminal offense.

“The government has created a perfect Catch 22: The law prohibits us from talking about the specifics of what we’ve seen, allowing the president to criticize us for not being specific,” Michael Wessel wrote in Politico. “Instead of simply admitting that he disagrees with me—and with many other cleared advisors—about the merits of the TPP, the president instead pretends that our specific, pointed criticisms don’t exist.”

HOUSE VOTES TO SLOW DOWN FAST TRACK FOR OBAMA’S TRADE AGENDA

the Intercept,

12 June, 2015

Despite last minute pressure from President Obama this morning, Democratic lawmakers voted down Trade Adjustment Assistance, part of the package of bills necessary to advance Trade Promotion Authority, which authorizes the administration to move forward with the Trans-Pacific Partnership and other trade agreements.

Democrats voted against TAA, a measure long-supported by liberals to provide job training and other assistance to workers negatively impacted by foreign trade, as a legislative maneuver to derail the effort to pass TPA. Both bills must be passed together so that they may be merged with the Senate version and sent to the president’s desk.

“If TAA slows down the fast track, I’m prepared to vote against TAA,” said Democratic Leader Rep. Nancy Pelosi, D-Calif.

The majority of Democrats joined a number of House Republicans to sink the package. The roll call showed it going down 126-302.

“Today the allegedly unstoppable momentum of the White House, GOP leadership and corporate coalition pushing Fast Track to grease the path for adoption of the almost-completed, controversial Trans-Pacific Partnership (TPP) deal just hit the immovable object called transpartisan grassroots democracy,” Lori Wallach, the director of Public Citizens’ Global Trade Watch, said in a statement.

After TAA failed, Republicans quickly brought up a stand-alone trade promotion authority bill. The measure passed by a two-vote margin. But observers note the vote was a test to see where members stand. For a stand-alone trade promotion bill to advance on its own, the Senate would have to take up the entire package again.

House Republican leaders have scheduled another vote for TAA on Tuesday. Speaker of the House John Boehner and Obama therefore have four days to persuade members of their parties to swallow their objections to TAA and TPA, respectively.

(This post is from our blog: Unofficial Sources.)