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1 1 (February 20, 2024)

handle is hein.crs/goveojl0001 and id is 1 raw text is: Congressional Research Service Infrmring the legislitive debate since 1914 Trade Promotion Authority (TPA) The U.S. Constitution empowers Congress to impose tariffs and regulate trade with foreign nations. Periodically, Congress has legislated authorities and procedures to signal to trading partners that trade agreements negotiated by the President will be implemented or voted upon. Commonly known as Trade Promotion Authority (TPA), these statutes usually empower the President to negotiate agreements and adjust tariff rates. Since the 1970s, they have also included expedited congressional procedures to consider legislation necessary to implement agreements that involve both tariff and nontariff barriers, provided the President meets certain negotiating objectives as well as notification/consultation requirements (Figure 1). Historically, it has been common practice, though not formally required, to have the President request that Congress reauthorize TPA. Ongoing or future trade negotiations have often prompted such requests. The most recent TPA was enacted in 2015 (TPA-2015, P.L. 114-26) and expired in July 2021. Congress has implemented the majority of U.S. free trade agreements (FTAs) under TPA statutes. Most recently, Congress used TPA-2015 to approve and implement the U.S.-Mexico- Canada Agreement (USMCA), which entered into force in 2020 and replaced the North American Free Trade Agreement (NAFTA). The Biden Administration has not asked Congress for a new TPA to date. Such a request could spur renewed debate in Congress over whether past trade negotiating objectives, consultation requirements, and legislative processes reflect changing congressional priorities and the evolving global trade environment. Rationale and Background Until the early twentieth century, tariffs were the primary source of revenue for the federal government and Congress spent a significant amount of time setting tariff rates. This pattern changed with the Reciprocal Trade Agreements Act (RTAA) of 1934. To promote U.S. exports during the Great Depression and to signal to potential trading partners that the United States would implement agreements as negotiated, Congress delegated authority to the President to negotiate trade agreements addressing tariff barriers and proclaim changes to U.S. tariffs within specified limits without further congressional action. By the 1960s, nontariff barriers (e.g., health standards, custom procedures) increasingly became the central topic of trade negotiations. Rather than authorize the President to proclaim nontariff-related changes to U.S. law, Congress enacted the first modern TPA in the Trade Act of 1974, which established fast track procedures to implement any necessary changes to U.S. law negotiated as part of a trade agreement. In creating TPA, Congress sought to * define trade agreement policy priorities by specifying U.S. negotiating objectives; Updated February 20, 2024 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 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 Elerents of TPA Proclamation Authority on Tariffs. TPA has maintained RTAA authority (e.g., Section 103(a) of TPA-2015) for the President to negotiate agreements addressing tariff barriers and proclaim changes to U.S. tariffs within specified limits without further congressional action. For more information, see CRS In Focus IF11400. Trade Agreements Authority. TPA provides authority to the President to negotiate agreements addressing both tariff and nontariff barriers. However, an agreement that requires changes to U.S. law would require congressional action to implement the agreement. Expedited Procedures. An implementing bill is subject to mandatory introduction; automatic discharge from the committees of jurisdiction; time-limited floor debate; and an up or down simple majority vote with no amendments. Negotiating Objectives. Expedited procedures are only available for agreements that make progress in achieving U.S. objectives as defined under TPA. Notification, Consultation, and Reporting. Expedited procedures are available only when the President fulfills certain notification, reporting, and consultation requirements before, during, and after negotiations. Limitations to TPA. Congress adopted TPA on pragmatic grounds to ensure that Congress votes in a timely way on the specific text of the agreement negotiated by the President. To guard its constitutional prerogatives, Congress has included a number of limits on TPA, including: time limits on use of TPA; the option for Congress to disapprove an extension of those limits; and two separate mechanisms to deny expedited consideration of an implementing bill for inadequate consultation or progress towards achieving negotiating objectives. Each Chamber also retains the right to exercise its constitutional rulemaking authority to change TPA rules. Hearings and Mock Markups. Congress has reviewed FTAs prior to the introduction of an implementing bill. The committees of jurisdiction typically hold hearings on the proposed agreement. They often hold informal mock markups on a draft implementing bill. Mock markups provide for public review of the deal and allow the President to receive nonbinding feedback from Congress.

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