POLICY BRIEF FROM AMERICANS FOR TAX REFORM

Why Trade Benefits Taxpayers

On June 30, 2007, the President's trade promotion authority (TPA) will expire. No Administration will be able to negotiate timely and effective trade agreements without TPA. While trade agreements submitted before TPA expires will still be subject to TPA, future trade agreements, therefore future economic expansion, are at risk.

Free trade promotes freedom and opportunity to all parties involved, TPA helps expedite those benefits. Today's global economy requires access to markets unfettered by barriers of any sort, TPA allows for free trade deals to take effect in a timely manner, thus benefiting all parties; creating good jobs, both here and abroad.

Trade is the backbone of the US economy, accounting for 25 percent of our economic growth in the 1990's and 20 percent in 2005. TPA allows the President to negotiate trade agreements that benefit the US and submit them to Congress to reject or accept them without altering them. This speeds up the benefits of free trade to the economies.

But Congress is not left out in the cold. A condition of TPA is that the president consults with them throughout the negotiation process. Members of the relevant committees are involved and have input.

TPA must be renewed every two years. Congress needs to act to renew TPA so that this President, and the next President, has the ability to advance the ideals and benefits of free trade in a timely fashion.

The US must speak with one voice when negotiating trade agreements. TPA allows that voice to be the executive branch, but empower Congress throughout the process and gives it the authority to have input and the final vote on whether to adopt the negotiated agreement. This is important to economic growth of the US and its trade partners, for the creation of new jobs and the continuation of the benefits beyond the economic that expansion of trade bring.

For these reasons, Congress needs to renew TPA.