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April 1998

House to Consider TAA Before Peru

Washington Trade Daily
September 27, 2007

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House Speaker Nancy Pelosi (D-Calif) has promised Democrats reluctant to vote for a free trade agreement with Peru that they will first have the opportunity to approve an expanded trade adjustment assistance program for US workers who lose their jobs because of trade (WTD, 9/26/07).

The speaker told Democrats yesterday she will bring legislation expanding TAA to the floor before voting on the US-Peru free trade agreement - or any other trade deals, a Democratic aide told WTD.

The announcement came at a closed-door meeting of the Democratic Caucus on the Peru FTA. At that meeting, a number of members spoke out - "often in passionate language" - according to one aide, including free-trade critics Reps. Phil Hare (Ill), Mary Kaptur (Ohio), Michael Michaud (Maine), Linda Sanchez (Calif) and Brad Sherman (Calif). Speaker Pelosi spoke in favor of the agreement at the meeting. Democratic leaders are not likely to actively whip the Peru vote, however, according to an aide. The FTA was also defended by Ways and Means Chairman Charles Rangel (NY), trade subcommittee chairman Sander Levin (Mich) and committee members Earl Blumenauer (Ore) and Allyson Schwartz (Pa) and Rep. Gregory Meeks (NY).

Several members urged the leaders to hold off on Peru so they can have more time to understand the new agreement and to take the pulse of their constituents, according to freshman Democrat Paul Hodes (NH). He told reporters he has not made up his mind yet about the FTA. A sizeable briefing book detailing the FTA was handed out to members.

House Trade Working Group

The House Trade Working Group - whose members oppose the Peru FTA - issued their own briefing paper which refuted Ways and Means' analysis of the agreement. Working group member Rep. Hare said he must oppose the FTA despite the new labor language. "I don't trust this Administration to enforce any trade deal," he said.

Both Ways and Means Chairman Rangel and Mr. Levin described the meeting in a positive light. Mr. Levin told reporters the discussion had confirmed his belief that more members will support the Peru FTA when they better understand the details - including the worker rights and environmental protection standards "Democrats have long been fighting for."

But Mr. Levin said members will have "plenty of time" for more debate before the trade pact reaches the floor. The trade subcommittee chairman reiterated his plans to circulate draft legislation next week expanding the TAA program and to craft a bill addressing currency manipulation and other trade violations by China (see related report this issue).

The Senate late Monday adopted legislation (HR 3375) granting a three-month extension of current TAA benefits already approved by the House. The short-term extension will give lawmakers time to come up with a longer-term bill expanding the program.

Mr. Rangel told reporters that he, Ways and Means ranking Republican Jim McCrery (La), Senate Finance Committee Chairman Max Baucus (D-Mont) and Finance ranking Republican Chuck Grassley (Iowa) have agreed to bring up the US-Panama FTA next - ahead of the more controversial Colombia trade pact that the Administration is pushing. US Trade Representative Susan Schwab defended the Colombia FTA in an appearance yesterday on CNBC, saying that the Uribe government has made major strides to curb violence against union organizers.

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