A Study on the Reauthorization of the Trade Promotion Authority in 2015

Abstract

Trade Promotion Authority (TPA) – formerly known as fast track – was reauthorized in June 2015 after heated debates in the U.S. Congress. TPA is a political mechanism by which Congress delegates its authority to the President for the purpose of negotiating and entering into certain preferential trade agreements. The most recent TPA expired in July 2007, and it had not been granted to the President in the ensuing eight years. This study suggests that TPA was reauthorized in 2015 through the interaction and compromise between the two important actors in U.S. trade policy, the Executive and Congress, regarding an overarching trade agreement - the Trans-Pacific Partnership (TPP). The Obama Administration aimed to establish new trade governance through 21st century trade agreements represented by TPP. Structural factors, such as the rise of China and the economic crisis in the United States in 2008 played an important role in shaping the strategy of the Obama Administration. The U.S. Congress had conflicting interests in TPA as well as TPP. It had motives for expanding free trade while minimizing the negative impacts that trade agreements could have on U.S. industries and workers. In the legislative process of TPA-2015, therefore, the Administration and Congress each had to compromise to a certain degree, which led to changes in the contents of TPA-2015. The critical changes of TPA-2015 are summarized as the expanded trade negotiating objectives, the strengthened role of Congress in trade negotiations, and the increased transparency and accountability during and after trade negotiations.

The substance of TPA-2015 and its legislative process have important implications for U.S. trading partners. By incorporating key priorities and interests of the U.S. Congress with respect to trade negotiations, TPA-2015 provides some clues on the future trade negotiating objectives of the U.S. government. In addition, newly introduced procedural requirements in TPA-2015 are likely to affect the substance and timeline of trade negotiations in which the United States engages and thus may also influence U.S. trading partners in the negotiation process. Finally, the dynamic legislative process of TPA-2015 shows the growing influence of other stakeholders, including industries, labor unions and civic groups, on trade negotiations, and this trend is likely to continue.