U.S. Trade Representative Michael Froman gave an important speech Tuesday at the Center for American Progress, a day before President Obama, Canadian Prime Minister Stephen Harper and Mexican President Enrique Peña Nieto were set to meet in Toluca, Mexico, for a North American summit.
Froman highlighted the benefits of expanded trade, especially the prospects of growth upon completion of negotiations of the Trans-Pacific Partnership and the U.S.-EU agreement, the Transatlantic Trade and Investment Partnership. From the prepared remarks:
America already has one of the most open economies in the world.
Our average applied tariffs are 1.3 percent and we don’t use regulation to discriminate against foreign goods.
Whether we pursue trade agreements or not, the U.S. will continue to see foreign imports because our consumers demand them and we have virtually no barriers to imports.
The same is not true for the rest of the world.
And that’s what the trade agreements we are negotiating are all about: lowering tariffs on Made in America products, breaking down barriers to our goods and services, and setting standards higher to level the playing field for American workers and firms, American farmers and ranchers, American entrepreneurs and investors.
In choosing the liberal think tank as a venue, Froman was reaching out to Congressional Democrats and other skeptics of trade negotiations, offering assurances that the Obama Administration would insist that the new trade deals (TPP and TTIP) would include strong protections for the environment, labor and intellectual property rights.
Froman concluded with a call for Congressional passage of Trade Promotion Authority, which expired in 2007.
We are eager for Congress to step forward and update its role in trade negotiations, to make clear which Members or committees should be involved, how those consultations should be conducted and what rules of transparency should apply.
Myron Brilliant, who heads interntional affairs at the U.S. Chamber of Commerce, also laid out out a persuasive case for Trade Promotion Authority in today's Wall Street Journal, arguing that it is an essential step for Improving America's position as the global marketplace. In his op-ed, "Why Harry Reid Must Reconsider on Trade," Brilliant details the many tariffs and other barriers to U.S. exports erected by countries involved in the TPP and TTIP negotiations:
[To] tackle any of these inequalities, Congress must first approve TPA. The Constitution grants Congress the authority to regulate international trade, but it gives the executive the authority to forge agreements with foreign governments. TPA allows each branch to perform its constitutional role.
Without TPA, U.S. exports will remain at a profound disadvantage. Renewing TPA would help restore fair competition in trade—and put economic growth in the U.S. ahead of partisan politics.
Finally, along with trade, energy and border controls are also expected to be topics of discussion at today's meeting in Mexico. We note all these issues were the subject of discussion in September 2012 when Business Roundtable CEOs met with their North American counterparts with the Canadian Council of Chief Executives and the Consejo Mexicano de Hombres de Negocios. From a joint statement:
Over the past two decades, growth in North American trade and investment has promoted regional, cross-border supply chains that have benefited the United States, Canada and Mexico alike. However, at a time of major change in the global economy, our organizations believe it is essential that we continue to enhance the ability of U.S., Canadian and Mexican companies and workers to compete internationally.
The three associations also endorsed the inclusion of Canada and Mexico in the negotiations over the Trans-Pacific Partnership, and indeed, the two countries joined the TPP talks on Oct. 8, 2012.
Following the discussions held at BRT's Washington office, the three CEO groups also sent a letter to the national leaders, urging the three to accelerate their efforts in strenghtening the countries' relations to improve economic growth and job creation.