Bush/Senate Battle Over Trade Authority

[Manu]

The Bush administration Tuesday appeared on the verge of losing a major battle with the Senate over its ability to negotiate new trade agreements.

In a show of strong support for U.S. "trade remedy" laws that shield U.S. producers from unfairly priced or subsidized imports, the Senate voted 38-61 against killing an amendment opposed by the White House.

The vote leaves the amendment offered by Sen. Mark Dayton, a Minnesota Democrat, and Sen. Larry Craig, an Idaho Republican, alive but not yet adopted by the Senate.

Earlier, top Bush administration officials warned they would recommend that Bush veto the "trade promotion authority" bill he has spent the last 15 months trying to obtain if the Senate approves the Dayton-Craig measure.

The amendment would create an exception to the normal ban on congressional changes to trade agreements under "trade promotion authority" by giving senators an opportunity to strike any part of a pact that changes U.S. "trade remedy" laws.

In a letter to Senate Finance Committee Chairman Max Baucus, the administration argued the amendment would undermine the U.S. ability to strike new trade deals by effectively taking U.S. anti-dumping laws and other protections against unfairly priced or subsidized imports off the negotiating table.

The administration said that would cripple its ability to reach agreements because trading partners have insisted that U.S. "trade remedy" laws must be part of ongoing negotiations under the World Trade Organization.

"The rest of the world will determine that the U.S. Congress has ruled out even discussion of a major topic," the Cabinet officials said in their letter.

"Other countries will refuse to discuss their own sensitive subjects, unraveling the entire trade negotiations to the detriment of U.S. workers, farmers and consumers," they said.

"For the foregoing reasons, we would strongly recommend to the president that he veto legislation that included this amendment," they said.

U.S. farm and business groups have joined the Bush administration in opposing the measure, which they fear will give other countries an excuse not to lower tariffs that restrict access to their markets.

But Senate Majority Leader Daschle said he supported the measure because it would allow the Senate to carefully scrutinize any changes made to trade remedy laws before approving a trade pact.

"I do believe that Congress ought to have the opportunity to weigh-in, to ensure that there is careful consideration of trade provision," the South Dakota Democrat said. "And that's all the Dayton amendment suggests, is that Congress have a way, a mechanism that would allow us to do that."

During floor debate on the measure, Dayton and Craig accused the Bush administration of mischaracterizing their amendment, which they said was only intended to strengthen the United States' hand in trade negotiations.

In 2001, 62 senators signed a letter to Bush saying they would oppose any trade agreements that weakens U.S. ability to use trade remedy measures. The Dayton-Craig amendment has 26 co-sponsors, equally divided between Republicans and Democrats.

In a bow to administration concerns, Dayton and Craig altered their amendment to require a vote of 51 senators, instead just 41 as originally written, to strike the trade remedy portion of any trade agreement.

Daschle said the change was a factor in his decision to support the measure.

Republicans still hope to craft a substitute that would emphasize the importance of the United States maintaining its trade remedy laws, without going as far as Dayton-Craig.

If that effort does not succeed, they will try to weaken the provision in negotiations with the House on a final trade promotion authority bill.
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