Rangel: Incentives Could Get Traction for Trans-Pacific Deal

Statement

Date: June 14, 2016

Agriculture groups reaffirmed their support for the Trans-Pacific Partnership (TPP) trade agreement at a Ways and Means subcommittee hearing on Tuesday but the panel provided no clues on whether Congress would vote on the contentious 12-nation pact this year.

"As far as I know, there is no calendar for TPP to come to Congress," said Rep. Charles B. Rangel, ranking member on the Subcommittee on Trade and a TPP critic. He suggested the full committee develop a strategy and a timetable for action. However, the New York Democrat said "the votes are not there" in the House without a package of incentives for lawmakers.

Rangel needled Chairman Dave Reichert, R-Wash., about the trade agreement's future given that trade deals are routinely hammered on the presidential campaign trail.

The presumptive GOP presidential nominee Donald Trump's antitrade and anti-TPP rhetoric has resonated with primary voters. Presumptive Democratic presidential nominee Hillary Clinton also opposes the agreement although she backed it while she was in the Obama administration.

Rangel suggested that the trade deal could have a better chance to move if it were tied to funding for infrastructure projects that would generate immediate jobs and for technology to aid businesses and education to modernize the workforce. Rangel, who announced his retirement earlier this year, suggested that might be one way to ease TPP through a lame-duck session before he leaves Congress.

Reichert did not directly respond to Rangel. He said the hearing was to highlight the importance of trade to the various sectors of agriculture and to highlight the need "to tear down tariff and non-tariff barriers to U.S. agriculture." He said the TPP agreement was promising in those areas but added "trade agreements must be done right and must be fully implemented and enforced to benefit America's agricultural producers."

Meanwhile, several agriculture trade groups endorsed TPP provisions that could benefit the sector if the United States makes sure the other 11 nations meet their obligations under the agreement. Witnesses represented the American Farm Bureau Federation, National Milk Producers Federation, National Pork Producers Council, the Washington (state) Brewers Guild and Foreman Fruit Co. of Washington.

Randy Mooney, chairman of the National Milk Producers Federation, said his organization wanted stronger assurances that the United States can and will penalize TPP member Canada if it tries to limit U.S. dairy imports. John Weber, president of the National Pork Producers Council, and Kevin Paap (cq), Minnesota Farm Bureau president, said exports are key to U.S. commercial agriculture producers. Paap said 40 percent of the grain he raises is sold overseas.

Rep. Kristi Noem, a South Dakota Republican with farming and ranching experience, told witnesses that getting TPP through Congress required "an all hands on deck" approach that includes agriculture groups promoting the agreement everywhere and to everyone. In her opinion, Noem said President Barack Obama hasn't been promoting it to lawmakers. "I haven't seen him working Congress like he should. If he wants this trade agreement to be done, he has to engage more."

At a separate event Tuesday, U.S. Trade Representative Michael Froman delivered the administration's message to the National Council of Farmer Cooperatives.

"In a town where the power of inertia is strong, it's important that your voices of urgency are heard -- because if TPP doesn't get done this year, it's unclear exactly when it might get done," Froman told the organization. "Rather than seeing new opportunities opened up for you, you could find some of the hardfought gains you've made internationally over the last couple of years erased."


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