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1 1 (December 14, 2020)

handle is hein.crs/govdcwp0001 and id is 1 raw text is: Trade Promotion Authority (TPA) Trade Promotion Authority (TPA) is a time-limited authority that Congress uses to establish trade negotiating objectives, notification, and consultation requirements, and procedures to consider implementing legislation for certain reciprocal trade agreements provided that they meet certain statutory requirements (see Figure 1). TPA is authorized through July 1, 2021. TPA was reauthorized in 2015 by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA) (P.L. 114- 26), which was signed by then-President Obama on June 29, 2015, after a contentious legislative debate. For the first 20 years of TPA's existence (1974-1994), it continually was in force. However, it lapsed from 1994-2002 and from 2007-2015. TPA: Key Facts * President tariff reduction authority first enacted in 1934 * TPA First enacted in 1974 * Renewed 4 times * Used to consider 15 FTAs and 2 multilateral GATT/WTO rounds * TPA 2015: In force until July 1, 2021 USMCA. TPA was used to implement and approve the United States-Mexico-Canada Agreement (USMCA). In addition, the Trump Administration notified Congress in 2018 that it planned to enter negotiations with the European Union, Japan, and the United Kingdom for potential trade agreements under TPA procedures. In October 2019, the United States and Japan signed two bilateral agreements that were not formally considered by Congress under TPA's expedited procedures. Rationa.s andBcgon The President has the authority to negotiate international agreements, including free trade agreements (FTAs), but the Constitution gives the U.S. Congress sole authority to lay tariffs and regulate foreign commerce. For 145 years, Congress exercised this authority by directly setting tariff rates. This policy changed with the Reciprocal Trade Agreements Act of 1934 (RTAA). Congress delegated authority to the President to enter into reciprocal trade agreements that reduced tariffs within preapproved levels, which did not require further congressional action. In the 1960s, nontariff barriers became a topic of trade negotiations. Congress found it necessary to alter the delegated RTAA tariff authority to require implementing legislation to authorize changes in U.S. law necessary to meet these new obligations. Given an implementing bill could face a potential amendment that could alter a long- negotiated agreement, Congress adopted what is now known as TPA in the Trade Act of 1974 to provide Updated December 14, 2020 expedited legislative consideration. Congress has sought to achieve four major goals in TPA: define trade agreement policy priorities by specifying U.S. negotiating objectives; ensure that the executive branch advances these objectives through various notification and consultation requirements with Congress; define the terms, conditions, and procedures under which the President may enter into trade agreements and to determine which implementing bills may be approved under expedited authority; and reaffirm the constitutional authority of Congress over trade policy by placing limitations on the use of TPA. Key Eements of TPA Trade Agreements Authority TPA provides authority to the President to enter into reciprocal trade agreements on reducing tariff and nontariff barriers. However, Congress must introduce implementing legislation for the agreement to come into effect. This legislation approves the agreement, and authorizes changes to existing law and/or changes strictly necessary or appropriate for its implementation. If enacted, the trade agreement then can enter into force by presidential proclamation. Proclamation Authority. Maintains RTAA authority for the President to negotiate tariff-only agreements within certain parameters without congressional approval. Expedited Procedures The implementing bill is subject to (1) mandatory introduction; (2) automatic discharge from the committees of jurisdiction; (3) time-limited floor debate; and (4) an up or down, simple majority vote. Negotiating Objectives An eligible agreement may be entered into only if it makes progress in achieving U.S. trade negotiating objectives as defined under TPA. Notification, Consultation, and Reporting TPA and the expedited procedures are extended to the President subject to certain notification, reporting, and consultation with Congress before, during, and after negotiations. Limitations to TPA Congress adopted TPA on pragmatic grounds to prevent trade implementing bills from being delayed or obstructed by congressional procedures. To assure retention of its constitutional authority, Congress has included time limits on use of the TPA; the option for Congress to disapprove an extension of those limits; and two separate options for Congress to deny expedited consideration of an implementing bill for inadequate consultation or progress towards achieving negotiating -.-,'~-' *.~

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