A Day Devoted to Trade

June 27, 2001

It was a day seemingly devoted to trade Tuesday as a group of senators and Agriculture Secretary Ann Veneman urged Congress to approve trade promotion authority, the agriculture coalition dedicated to the same goal sent a letter to congressional leaders urging "quick action," and a bill was introduced that attempts to mollify labor and environmental interests that want those issues addressed in any U.S. trade pact.

The Agriculture Coalition for Trade Promotion Authority, co-chaired by the National Pork Producers Council and Farmland Industries, sent the letter that was co-signed by 74 farm and food organizations. It was presented to Sen. Charles Grassley (R-IA) at an event Grassley sponsored.

Glenn Keppy, a pork, corn and soybean producer from Davenport, IA, said, "Only through the negotiation of more trade agreements can we convince other nations to lower or remove artificial barriers that prevent substantive trade from happening. Without trade promotion authority, however, the negotiating process is stopped in its tracks. It can't even begin."

Grassley said, "The best way for the United States to secure its position at the next round of global trade talks scheduled for November is to grant the President trade promotion authority. Without this green light from Congress, the United States will be idling indefinitely. It's time to give the President the tools he needs to negotiate trade agreements that open new markets for American agriculture."

The U.S. Constitution gives Congress the power to broker matters of international trade. But with 535 members, it is virtually impossible to hammer out an agreement that would satisfy each and every member down to the last detail, said Grassley. Trade promotion authority retains Congress' right to accept or reject trade agreements without making changes to the proposal. Since 1994, when the policy then known as fast-track trading authority expired, the clock has been ticking on this issue.

"The United States stands at a crossroads. Do we want to spring forward and compete for new market opportunities? Or do we fall backward and lag behind our trading partners?" Grassley said. Grassley said he wants to see "the U.S. restore its position as a leader in matters of international trade. Without trade promotion authority, we take a backseat while other countries forge ahead with strategic trade pacts that leave American farmers, workers, entrepreneurs, and small business owners at a competitive disadvantage," he said.

Sen. Richard Lugar (R-IN) said the vote on TPA "is the most important farm vote in Congress this year." At the rally outside the U.S. Capitol he said, "We have the largest commodity surpluses since 1988 which is the cause of low prices. There is no way for prices to go up unless we move the products. Trade agreements are the best way to move our products."

Lugar has consistently introduced and supported legislation to end trade barriers, encourage trade agreements and restrict sanctions that might backfire on U.S. products. He noted that numerous opportunities exist to expand exports to Asia, South America and elsewhere but agreements can't be completed without Presidential trade promotion authority. Other countries are unwilling to enter serious trade discussions if they believe Congress will second-guess what is decided at the negotiating table.

Sens. Bob Graham (D-FL) and Frank Murkowski (R-AK) introduced legislation to use trade for the promotion of both international economic development and fair labor standards and environmental protection.

While the bill does not mandate the inclusion of labor and environmental standards, it does add worker rights, environment, information technologies, and compliance and enforcement to a "standard list of principal negotiating objectives" and "gives negotiators maximum flexibility to reach the best agreement possible by leaving all enforcement options on the table."