WASHINGTON — Senate and House Democrats clashed with U.S. Trade Representative Susan Schwab during two days of hearings over Bush administration trade policy, and pressed her on why they should renew the President’s expiring trade promotion authority.
In control of Congress for the first time in Bush’s presidency, Democrats are formulating their conditions for renewing TPA, which expires on June 30, and they tested Schwab on the administration’s willingness to make changes to its scope.
The hearings, held by the House Ways & Means Committee and Senate Finance Committee Wednesday and Thursday, respectively, exposed the differences between the White House and Congress over the role each branch should have in shaping trade policy.
In negotiating for TPA renewal, the administration has shown a willingness to work to strengthen labor standards in trade agreements. Democrats have been pressing for agreements to adhere to International Labor Organization standards, which include abolishing slave and forced labor and the right to collective bargaining.
Sen. Max Baucus (D., Mont.), chairman of the Senate Finance Committee, outlined some of the Democrats’ conditions for renewal and rebuked Schwab for calling it a “contract” between the legislative and executive branches.
“How are you proposing to change fast track [the former term for TPA] to get Congressional approval?” Baucus asked Schwab. “Basically, right now, Congress has no leverage. Congress has no role. None whatsoever, except to accept or reject” a trade deal.
Baucus, revealing a condition Democrats are considering, asked Schwab whether Congress should reinstitute a previous capability that allowed lawmakers to reject countries with which the administration sought to negotiate a trade deal.
Schwab said, “You have my commitment as we go forward and talk about Trade Promotion Authority renewal to talk about what needs to be in there to make sure that Congress is convinced [it] is being heard and is a partner in this exercise in a way that does not tie the administration’s hand.”
Among the other changes Democrats are considering for TPA approval are an expansion of Trade Adjustment Assistance to include service workers displaced when companies close due to global competition, stronger enforcement of trade agreements and changes that “ensure job creation.”
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Baucus pressed Schwab on how far the administration would go to strengthen labor standards in pending free trade agreements.
“In any free trade agreement that you negotiate, you are almost by definition, even without labor standard provisions, raising labor standards” in that country, said Schwab. “I think it is clear that countries should not be able to backslide in terms of labor commitments. We’re talking about internationally recognized labor rights and we are talking about issues relating to enforceability. Those are issues we are engaging in and we hope we are able to bridge the gap.”
Baucus told Schwab the more the administration was forthcoming, “the more quickly and more likely it is to get fast track renewal,” but he warned that simply saying a free trade agreement automatically raised labor standards was not enough.
Rep. Lloyd Doggett (D., Tex.) also pressed Schwab at the Ways & Means hearing on whether she supported incorporating in trade deals the ILO core labor standards.
Schwab told Doggett the administration did not support reopening existing pacts to strengthen labor provisions, but said, “I have made a commitment to chairman [Charles] Rangel (D., N.Y.) and Rep. Jim McCrery (R., La.) to try to bridge the differences on labor rights in trade agreements.”