Update on the Omnibus Trade Bill
 
May 30, 2002
 

The Senate has passed the Omnibus Trade bill, which now goes to conference to resolve differences between it and the House version. While both bills grant the President Trade Promotion Authority, (TPA), the Senate bill also renews the Generalized System of Preferences and Andean Trade Preference Act (ATPA) programs, and expands the trade adjustment assistance (TAA) program for workers laid off as a result of foreign trade. The TAA provision, as well as one of the amendments made to the Senate bill during the floor debate, promise to be the most problematic during conference.

The controversial amendment, which was offered by Senators Dayton (D-MN) and Craig (R-ID), screens U.S. trade-remedy laws from the up-or-down congressional vote contemplated by TPA. Although United States Trade Representative Robert B. Zoellick has issued a statement supporting the Senate passage of the TPA provision, President Bush has threatened to veto the bill if it is presented to him with the Dayton-Craig amendment. Farm groups have adopted contrary positions on the amendment, with the National Farmers Union and other groups representing predominantly small family farms supporting the amendment, while the Agricultural Trade Coalition, which includes the American Farm Bureau Federation and most commodity groups, vigorously opposing the amendment. The amendment has also generated negative responses from foreign officials, who warn that it sends the wrong signal for trade negotiations, and undermines U.S. ability to discuss the trade remedy laws of other countries. Senate Minority Leader, Trent Lott (R-MS) and other senators have expressed confidence that the Dayton-Craig amendment will not survive conference.

In the meanwhile, the extension on the ATPA has expired. Senate Majority Leader, Tom Daschle (D-SD) had left open the possibility that the bill could be considered separately from the rest of the trade package; alternatively, the administration could grant another extension. No discussion has been made public about whether to also separate from the bill the provision renewing the GSP program, which expired in 2001.

New Trade Association Fights TPA. A recently formed group, the American Textile Trade-Action Coalition, has stated its determination to fight against trade promotion authority, and to push the House leadership to keep its promise to limit textile imports from beneficiaries of the Caribbean Basin Trade Partnership Act (CBTPA). The press conference announcing the launch of the group was attended by several members of Congress. The group's emergence is well-timed to join the battle regarding passage of the omnibus trade bill, which includes trade promotion authority.