Top trade lawmakers urge for ambitious completion of agreements in Bali

House and Senate trade leaders urged the Obama administration on Thursday to complete a couple of agreements next month at the World Trade Organization’s meeting in Bali, which they argue will boost the U.S. economy. 

House Ways and Means Committee Chairman Dave Camp (R-Mich.), ranking member Sandy Levin (D-Mich.), Senate Finance Committee Chairman Max Baucus (D-Mont.) and ranking member Orrin Hatch (R-Utah) sent a letter to U.S. Trade Representative Michael Froman in support of concluding the expanded Information Technology Agreement (ITA) as well as a trade facilitation deal in December.

“As strong supporters of a multilateral trading system in which an effective World Trade Organization plays a key role, we applaud your efforts to reinvigorate the WTO as a negotiating forum and to move past the stalemate of the Doha round,” they wrote. 

They said that a commercially significant expansion of the ITA and an ambitious trade facilitation agreement “are two separate opportunities with enormous potential” to increase U.S. exports and jobs.

“We urge you to obtain robust agreements in each of these areas as soon as possible, and we stand ready to work with you to accomplish this goal,” the wrote. 

They noted that through tariff elimination on information technology products, the ITA has helped to “increase jobs, spur growth, drive innovation, lower consumer prices, and connect communities around the world.”

In turn, a successful ITA negotiation would increase U.S. exports of technology products and boost the broader global economy, they wrote.

While they lauded the progress made on ITA negotiations, they expressed concern that time is running short with significant work remaining. 

For example, China needs to reduce the number of products they seek to exclude from the expanded ITA.

“Any final agreement should also include important products that are priorities of U.S. information technology exporters, such as next-generation semiconductors, high tech instruments, and medical devices,” they wrote.   

They also argued that robust Bali Ministerial package is another opportunity for significant trade liberalization.

“We believe that an ambitious trade facilitation agreement is essential to any Bali package and that the entire package must reflect U.S. interests and priorities,” they wrote. 

The lawmakers argue that any package holds the potential benefit for all countries and would particularly help the economies of developing countries. 

The Organization for Economic Co-operation and Development estimates that such an agreement could reduce trade costs by 10 percent in advanced economies and up to 15.5 percent in developing countries.

They expressed additional concern for possible agriculture proposals for inclusion in a Bali package.  

“We are wary of efforts in certain recent proposals to roll back existing rules or weaken existing commitments,” they wrote. 

“Any outcome in this area must include safeguards to limit the duration of any so-called peace clause regarding WTO-inconsistent practices, significantly improve the transparency of existing programs, and ensure that no commercial distortion occurs as a result of these programs.  Any violation of these safeguards should automatically invalidate the restraints that are being discussed.”