During his State of the Union address, President Barack Obama hinted at the importance of ongoing global trade discussions when he requested that Congress grant him the authority to negotiate trade deals.
Through the legislative procedure, Congress outlines "trade policy priorities" and "negotiating objectives" for the president. TPA also implements certain requirements regarding the administration's responsibility to consult with Congress, the private sector and other stakeholders, as well as the public. Finally, TPA determines the "terms, conditions and procedures" through which the administration can enter into trade negotiations. Usually in the U.S. the authority to regulate trade lies with Congress, but in some cases using the TPA, Congress can guide the Executive branch on trade negotiation instead.
How TPA would change outcome of ongoing trade negotiations for North America
Currently, the U.S. is involved in a series of historic trade discussions, the closest to completion being the Trans-Pacific Partnership (TPP). Also ongoing is the Trans-Atlantic Trade and Investment Partnership (TTIP).
Sen. Orrin Hatch, chairman of the Senate Committee on Finance, recently warned that finishing the TPP – a deal that both Canada and Mexico also have stakes in – without first passing TPA would be a mistake. The Utah Republican noted that with TPA, the U.S. could draw more out of the Pacific trade negotiations than without it, or at least that not enacting TPA would lead people to think that if objection arises to the TPP. The deal has the potential to turn North America into a powerful exporting machine in the global trade network, and completing discussions properly is important.
"The TPP has the potential to turn North America into a powerful exporting machine"
Canada, for instance, could see exports for a number of products surge significantly if TPP negotiations are completed in a manner that serves to benefit North America. The Atlantic provinces of Newfoundland and Labrador in 2012 alone exported $771 million in fish and seafood. Eliminating tariffs on seafood exports in countries such as Japan and Vietnam would help open Canada's north Atlantic region to a 792 million person market in these Asian countries.
U.S. Vice President Joe Biden recently met with Mexican President Enrique Peña Nieto and several U.S. Cabinet officials in order to discuss a path toward completion for the monumental Pacific trade agreement currently in the works, as its completion could prove hugely beneficial to the economics of both countries, as well as Canada. It remains to be seen whether TPA will be passed in an effort to help move negotiations along. While in the past the Republicans have often been proponents of the legislative procedure, the conservative party remains split with the Tea Party faction opposed to granting President Obama the reigns on trade negotiation.