Froman warns lack of resources may stymie trade agenda

While the message isn’t a new one, the tone has grown more urgent as demands on the small agency spike. 

The Obama administration is not only negotiating a deal with the European Union as well as a 12-nation Trans-Pacific Partnership (TPP), but trade officials are trying to be responsive to specific lawmakers concerns — from engagement on trade promotion authority (TPA) to currency manipulation issues and other trade issues that affect industries such as textiles.

“Financial constraints are forcing us to make difficult decisions every day,” Froman told the panel.  

“The opportunities we miss have real effects on whether or not your constituents are getting the full benefits of a robust trade policy and the jobs and growth promised by our trade agreements.”

Because of the tight money situation, USTR has been forced to reduce or cancel regular bilateral engagements aimed at increasing exports in key emerging markets from Brazil to India to Turkey. 

The office has had to “sharply curtail” face-to-face engagement to address priority intellectual property rights issues. 

For example, officials have been cut nearly all travel for that purpose — to only one of 41 countries listed in our annual report on intellectual property protection concerns, according to an agency official. 

The scope of the trade agreements encompasses 65 percent of the global economy and could set high-level standards for additional trade deals down the road, Froman said. 

When lawmakers asked what they could do to help, Froman urged them to ensure the trade office has the funding necessary to carry out its duties. 

“We’re doing the best we can,” he said. “This agency gives the biggest bang for the buck but we need to make sure we’re fully resourced.”