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Congressional Reactions to TPP Deal Mixed, Industry Offers Tentative Support

Reaction from Capitol Hill on the Trans-Pacific Partnership trade agreement ranged from defiant to laudatory, though most said further review is needed ahead of any conclusion. Notably, Senate Finance Committee Chairman Orrin Hatch, R-Utah, Senate Majority Leader Mitch McConnell, R-Ky., and Sen. Bernie Sanders, I-Vt., were among the lawmakers that were quick to voice concerns with the deal. Any trade deal would need final approval from Congress before implementation and the likelihood of such approval remains an open question (see 1509160068). Industry trade associations also withheld judgment until the final text is released but were generally supportive of the deal.

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Hatch, who heads the Senate's main committee for trade issues, sounded skeptical of the deal's benefits in his statement (here). "Closing a deal is an achievement for our nation only if it works for the American people and can pass Congress by meeting the high-standard objectives laid out in bipartisan Trade Promotion Authority," said Hatch. "While the details are still emerging, unfortunately I am afraid this deal appears to fall woefully short." McConnell promised "intense scrutiny" for the deal as "serious concerns have been raised on a number of key issues," he said (here). Sanders, who is running for president, said he plans to fight the agreement in Congress. “In the Senate, I will do all that I can to defeat this agreement," he said (here). "We need trade policies that benefit American workers and consumers, not just the CEOs of large multi-national corporations.”

House Ways and Means Committee Chairman Paul Ryan, R-Wis., said (here) that while TPP would expand U.S. influence and add jobs, "I am reserving judgment until I am able to review the final text and consult with my colleagues and my constituents." Specifically, "I want to explore concerns surrounding the most recent aspects of the agreement," Ryan said. Ways and Means Ranking Member Sander Levin, D-Mich., also sounded lukewarm. "Progress has been made on important issues, with the outcome on a multitude of issues still requiring deeper scrutiny, and others falling short of the results we seek," he said. "Unfortunately, there is still no satisfactory plan to ensure that Mexico – a country where economic competition with U.S. workers is the most intense – changes its laws and practices to comply with its obligations in the agreement."

House Trade Subcommittee Chairman Pat Tiberi, R-Ohio, gave tentative support (here). Senate Finance Committee Ranking Member Ron Wyden, D-Ore., applauded (here) several specific provisions of the TPP, including the treatment of tobacco and "enforceable measures to promote the free flow of digital information across borders."

National Customs Brokers & Forwarders Association of America President Geoff Powell said in a statement that the group is pleased with development and will stay engaged throughout the process. Just as "Congress is taking a wait-and-see approach, we too want more detail," though "we expect to be on-board," he said. "We will be following developments in the Congress, not only during the 90 day period when legislators and the public can examine the agreement, but also when Congressional Committees begin to construct implementing legislation early next year."

Apparel-related trade groups seemed especially happy with the agreement. “Though we are waiting to examine the final details, our briefings at the Atlanta TPP round lead us to believe that U.S. negotiators were able to achieve a well balanced and reasonable outcome for U.S. textile manufacturers and our partners within the Western Hemisphere,” said National Council of Textile Organizations President Augustine Tantillo (here). The deal "could present a tremendous opportunity for our industry," said the Apparel & Footwear Association (here). The Footwear Distributors and Retailers of America offered praise (here) as the group "has worked for years to highlight the need for an agreement that provides significant duty reduction for footwear companies and American consumers." The U.S. Fashion Industry Association also added support for the deal (here).

The deal will "accelerate the flow of goods through supply chains and create a more competitive business environment in a region with the world's fastest growing economies,," said Mike Mullen, executive director of the Express Association of America. Numerous other trade groups, including the U.S. Council for International Business (here), the National Foreign Trade Council (here) and Emergency Committee for American Trade (here), voiced appreciation for the negotiators and vowed a close examination of the deal. Major unions, including the AFL-CIO (here) and Communications Workers of America (here) disparaged the TPP agreement.