Trade

Debate heats up over passage of trade agreements

by Vicki Needham - 05/25/11 4:59 PM ET

Hatch pressed Miriam Sapiro, deputy U.S. trade representative, for specifics on which jobs would be lost by implementing the three pending trade deals, thus requiring the renewal of the TAA program, which expired in February.

“I don’t think you can show one job loss from passing these free-trade agreements,” Hatch told Sapiro.

“I don’t see how they’re going to lose their jobs. Everything I’ve looked at said we’ll create jobs from the trade agreements,” he added.

Sapiro explained that the program helps those who’ve already lost their jobs and their benefits provided by the trade assistance program. She assured Hatch that she’s confident the agreement with Panama “will boost exports and create or sustain more American jobs.”

“So you’re going to hold up these trade deals because some people may be suffering,” Hatch responded. “We need to do it in a way that is justified rather than holding up these trade agreements that are so special for our relationships.”

Hatch questioned the cost of the TAA program and asked why Congress should “put up $7.2 billion over 10 years just because the unions want it.”

“I don’t understand the logic and it’s driving me nuts,” Hatch said.

Baucus stepped into the conversation, saying TAA covers all jobs lost to trade and isn’t specific to countries.

“We need to get the FTAs and the TAA reauthorization passed,” he said.

Sapiro reiterated that renewing TAA has always been bipartisan and it’s “vital.” She said lawmakers and the White House must have a deal on TAA with the 2009 changes before the three trade agreements are formally sent to Capitol Hill.

“We feel very strongly that TAA must move in tandem with the trade agreements,” she said, saying the sequencing and timing are being discussed now.

She urged lawmakers to quickly forge an agreement so the trade accords can be completed.

The TAA program has been dangled by both parties in an effort to secure passage for the trade deals. Earlier this year, Republicans held up the reauthorization of TAA until they got a commitment from the Obama administration to send the three pending trade deals.

All the three trade deals are currently going through technical discussions to prepare them for submission. Once those talks are complete, the trade deals would be ready for Congress to pass.

The administration has been calling for agreement on a broader trade agenda once the three trade deals are lined up for approval, including renewing expired trade preferences and beginning normal trade relations with Russia once it joins the World Trade Organization (WTO).

Despite broad support for TAA, some Republicans have been reluctant to renew the program at the 2009 economic stimulus levels.

Changes in 2009 expanded the eligibility to all workers whose jobs have been moved offshore, regardless of whether the United States has a trade agreement with the particular country and it expanded the Health Coverage Tax Credit, which helps trade-affected workers afford private health insurance.

In the past week, 41 Senate Democrats, 162 House Democrats and 25 governors have sent letters in support of the trade deals being combined with a long-term renewal of TAA.

TAA retrains workers who have lost jobs due to trade because imports have increased or factories have moved overseas, and TAA helps workers take advantage of the new opportunities created by expanded trade.