Proposed "Trade Act" Could Lead to Re-opening NAFTA

(GHY International)

A trade reform bill introduced this week would put the brakes on pending trade agreements and could result in re-opening existing pacts such as the North American Free Trade Agreement.

Led by Rep. Mike Michaud (D-Maine), chairman of the House Trade Working Group, more than 100 supporters of the legislation claim it sets out a new international trade model that would help protect human rights, the environment and U.S. jobs. The working group has opposed free-trade agreements, including the Central American Free Trade Agreement and the pending pacts.

The proposed legislation would require that pending agreements with Panama, Colombia and South Korea be renegotiated to meet the TRADE Act’s requirements. The bill has the support of several progressive organizations, such as Public Citizen’s Global Trade Watch, environmental groups and all the major unions, including the AFL-CIO and Change to Win.

“This is the opportunity to build a new model for trade,” said Michaud, noting that a companion bill in the Senate is also in the works.

Business groups and industry lobbyists, however, say the measure would stifle trade and hurt the U.S. economy.

“This is a recipe for disaster,” said Christopher Wenk, trade lobbyist for the U.S. Chamber of Commerce. “These guys want to set a course backward on trade, and we want to set a course forward on trade. This is not the course our workers and exporters need right now.”

Andrew Shore, a partner with the trade law and lobbying firm Jochum Shore & Trossevin, which represents retailers and importers, said he also thought the measure was bad policy.

“From what we’ve seen, this piece of legislation is focused on stopping trade, not facilitating trade,” Shore said. “And it is totally counterproductive to the trade debate.”

The "Trade Act" would require that all future U.S. agreements include more labor and environmental provisions, and it includes a “sense of the Congress” proposal that calls for a replacement to so-called fast-track authority — which gave the Congress only a yes or no vote on trade agreements — by giving Congress a more signiicant say in selecting negotiating partners.