Obama loses major trade vote on Pacific
Democrats in U.S. Congress reject proposal on free trade
WASHINGTON— He made his first visit to their charity baseball game. He paid them a rare visit on Capitol Hill.
U.S. President Barack Obama, never a natural schmoozer, launched a last-minute charm offensive to try to persuade members of Congress to side with the Trans-Pacific Partnership (TPP) free trade agreement he sees as essential to his legacy. He was spurned by his own party.
The massive deal involving Canada and 11 other countries was dealt a major blow Friday — by Democrats. Obama’s reliable allies in the House of Representatives overwhelmingly rejected a proposal to give the president the legislative power he says he needs to complete the negotiations that had been thought to be in their final stages.
The House technically voted in favour of granting Obama that power, known as “trade promotion authority.” But it first voted by a remarkably wide margin — 302 to126 — against a connected measure to provide assistance to workers whose jobs are displaced by trade. Obama had to win both votes to actually obtain the trade promotion authority. The Trans-Pacific deal is not dead, but it is now less likely to come to pass. Had Obama been handed trade promotion authority, Congress would have only been permitted to vote yes or no on the final deal, not make any changes to it. Trade experts believe America’s negotiating partners are reluctant to offer delicate concessions knowing that Congress can later mess with the text.
Top U.S. trade officials have demanded that Canada loosen its “supply management” protections on the dairy and poultry industries. Canada appears to have held firm.
“We’re having positive discussions now. But you can’t have a situation where a country like Canada can come to an agreement with 12 countries, including the United States, that they can bring back to (Capitol) Hill and it can be amended,” Ambassador Gary Doer told The Canadian Press in December.
Max Moncaster, spokesman for International Trade Minister Ed Fast, said Friday the government “would welcome an outcome that allows TPP negotiations to move toward a balanced agreement that will benefit all member states.”
Obama’s Republican supporters will bring the worker program back for another vote next week. But Obama has only a few days to persuade dozens of Democrats to change their minds on a deal bitterly opposed by key party constituencies such as unions and environmentalists.
The deal’s contents are still secret. Broad outlines are known: It would cut import tariffs between countries that make up 40 per cent of the world’s economy, from Japan to Chile, create new rules on issues as varied as intellectual property and food safety and give companies the right to fight domestic laws at special arbitration panels separate from regular courts.
The deal could also challenge the influence of China. Pro-trade Republicans said the deal would both create jobs and serve as a powerful assertion of American power.
“The world is watching, and they’re trying to make a decision: is America still America? Or is America in retreat?” said Wisconsin Rep. Paul Ryan, a former vice-presidential candidate.
But Ryan was followed by a procession of Democrats who said the deal would lead to further outsourcing of good-paying American jobs to lowwage countries with lax labour and environmental regulations.
New Jersey Rep. Bill Pascrell cited the disappearance of his town’s textile industry. Michigan Rep. Debbie Dingell said her state is “still paying the price” from the North American Free Trade Agreement.
“Enough is enough,” Dingell said. “Congress cannot abdicate its responsibility to the working man of this country.”
The most notable rebuke to Obama came from Minority Leader Nancy Pelosi, his loyal lieutenant. She said she wanted “a better deal for America’s workers.”
The actual economic impact of the deal might not be as dramatic as either side suggests; many tariffs are already low.