On June 23, 2015 the Senate adopted a law giving President
Obama the power to “fast-track” talks on free-trade pacts such as the
Trans-Pacific Partnership (TPP) after months of fierce debate in both
houses of the Congress. The trade bill advanced 60-37, with the minimum votes
needed to break a Democratic-led filibuster against the so-called Trade
Promotion Authority. Thirteen Democrats sided with GOP leaders on the vote, and
five Republicans
Trade Promotion
Authority (TPA), as the measure is called, means that Congress will only
get to vote up or down on the treaties in question once they are finalized by
the White House, without the ability to offer amendments.
On April 16, 2015 The United States Fashion Industry
Association (USFIA) applauded the introduction of the bipartisan Trade
Promotion Authority (TPA) legislation, Bipartisan Congressional Trade
Priorities and Accountability Act of 2015. They pointed out, that the passage
of TPA will allow the Obama Administration to conclude the TPP, a potentially
groundbreaking agreement for fashion brands and retailers doing business in the
Asia-Pacific region, as well as create ambitious trade policy for the future,
such as the Transatlantic Trade & Investment Partnership (TTIP), a historic
trade negotiation with Europe. Read more about the The
United States Fashion Industry Associations thoughts on TPA.
Learn more about government
issues relevant to the fashion industry here on Apparel
Search.
Historical reference:
The fast track negotiating authority for trade agreements is
the authority of the President of the United States to negotiate international
agreements that Congress can approve or disapprove but cannot amend or
filibuster. Also called trade promotion authority (TPA) since 2002, fast track
negotiating authority is a temporary and controversial power granted to the
President by Congress. The authority was in effect from 1975 to 1994, pursuant
to the Trade Act of 1974, and from 2002 to 2007 by the Trade Act of 2002.
Although it expired for new agreements on July 1, 2007, it continued to apply to
agreements already under negotiation until they were eventually passed into law
in 2011. In 2012, the Obama administration began seeking renewal of the
authority.
You may also have interest in learning about the Transatlantic
Trade and Investment Partnership (T-TIP).
How does this affect the USA apparel industry?
According to the Trade Promotion Authority website (June
2015), “We know that exports support American jobs. And we know that U.S. trade
agreements sustain those job-supporting exports: our agreements with just 20
partners support 46 percent of our country’s goods exports overall. In fact,
exports accounted for a third of U.S. growth since 2009. The trade agreements
we’re working on right now – T-TIP and TPP – account for 65 percent of the
world’s goods and services trade and would account for 69 percent of U.S. goods
exports. TPA will help to get those agreements in force and support American
jobs.” That sounds like it is good for USA clothing
factories.
If you know more information on this subject you are welcome
to share your thoughts in the comment area below. We would be happy to hear why
you like or dislike the trade bill.