Most important trade news the last few weeks have concerned TPA and Congress and the recent blocking of TPA on procedural grounds in the Senate. This is extremely unfortunate for a broad range of reasons including economic, geopolitical and political.
The congressional debate includes issues of currency manipulation, trade adjustment assistance, national security, future rules of global trade, among a host of others. The basic problem is that those objecting to further liberalization want more say and this is reinforced by the powers of the Congress in global trade.
This calls for even more energetic policies of the President to get TPA through the Congress this year. Otherwise both TPP and TTIP are dead and so is much of U.S. global leadership, in both trade and foreign policy.
New report by the Council of Economic Advisers. Three conclusions: (1) U.S. Trade agreements do not increase American investments abroad; (2) U.S. is the world’s largest agricultural exporter; (3) U.S. has the the world’s largest service sector and is the world’s leader in such exports. Good reasons for concluding the TPP. Would benefit U.S. exports and economy without outsourcing jobs. 10 Facts About Trade (Council of Economic Advisers) (May 2012).