Trade Promotion Authority (TPA)
Name
Institution
Trade Promotion Authority (TPA)
Trade promotion authority refers to a governmental device that is made to improve trade negotiations making the United States to enlarge its competitive opportunities and giving the United States businesses the ability to nourish in the global market (Bolle, 2007). TPA is a bill that brings both the congress and the senate together to make trade agreements as well as transforming the agreements into laws. The bill states clearly the legislative procedure that together with detailed consultations of the congress allows the president to submit trade agreements to the congress for a given period without any amendment (Bolle & Library of Congress, 2007). It does not do away with the authority of the congress to analyze trade agreements and pass implementing legislation. Trade promotion authority assists in the creation of a strategic framework for the United States trade policy while at the same time establishing an imperative linkage between the president and the congress for purposes of pursuing trade negotiations.
Importance of the TPA
The United States of America is going through one of its very ambitious and wide range of trade negotiations ever. These negotiations include the Trans-Pacific Partnership negotiations combined with eleven Asia-Pacific nations, a Transatlantic Trade and investment Partnership, with the European Union together with its twenty-eight member states and the trade on services among others (Bolle, 2007). The negotiations entail a number of 21st trade issues like foreign restrictions on cross-border data flows, unfair competition that come from nation-owned enterprises, intellectual property rights, forced localization barriers to investment and trade, as well as worldwide regulatory cooperation that have evolved over a number of years (Hornbeck, Cooper, & Library of Congress, 2006).
Updating the trade promotion aims would in a great deal assist strategically in guiding the United States across this vast range of trade negotiations. The objectives and the procedures of the authority will help in laying out a structured framework as well as a pathway for addressing any of the issues that may be brought forth earlier than noted (Bolle & Library of Congress, 2007). Most of these issues arise either during and after the negotiations thus, having a TPA would make it easy to have a congressional approval of any legislation required in the implementation of the trade agreements (Bolle, 2007).
Trade promotion authority makes sure that the inputs of the congress on trade negotiations by stating the meaning of the key negotiating aims that new treaties must pursue. It generally protects the congress’ oversight authority by mandating specific and broad consultations with the executive branch before, during and after the trade negotiations (Bolle & Library of Congress, 2007). The authority strengthens the skills and the hands of the US negotiators by offering them with the required directions of the major negotiating goals and making sure that the trade partners trust that the agreements will receive an up-or-down vote in the congress (Hornbeck, Cooper, & Library of Congress, 2006). The bill increases the power of the congress to shape the legislation in implementing completed trade agreements.
Pros and Cons of TPA
Despite its importance to the United States, the TPA has a number of advantages and disadvantages. As such, those people who advocate or TPA argue that the bill is not in anyway giving the president a form of new power (Bolle & Library of Congress, 2007). They also argue that it does not deprive the congress of its legislative power since the congress still participates in the process of drafting and implementing any of the bills with TPA being one of them. This makes the two parties to have the absolute right to deny the bill in the regular bill forming process.
The application of the Trade promotion authority will with no doubt promote the United States economy by way of inducing more trade treaties to the country. The introduction of reduced costs of re-negotiation will make sure that other countries are in a better position to easily enter into agreements with the government of the United States (Bolle & Library of Congress, 2007). Having new agreements will lower the barriers of trade, thus resulting to an increase in the volume of international trade that will with no doubt lead to higher GDP and spurring job growth (Hornbeck, Cooper, & Library of Congress, 2006).
Contrary to the proponents of TPA, the opponents of the trade promotion authority have expressed their concerns on the seemingly diminished power of the congress in the process of legislating laws. The opponents also think that trade promotion authority is not necessary since both the house and the senate is aware of the importance of trade treaties and its reciprocity (Bolle & Library of Congress, 2007). The opponents also have an argument that personal industries and the employees will be the people who will bear the expenses of the lower trade challenges, since they are in one way forced to cut the cost to keep their competitiveness in the market (Hornbeck, Cooper, & Library of Congress, 2006).
Conclusion
To conclude, trade promotion authority is a good thing to adopt since it increases the number of trade agreements between the United States and other states. As such, it is a positive thing to have in the country since its benefits outweighs its disadvantages. In this paper, TPA has been discussed in details stating some of its importance to the economy of the United States, the advantages and the disadvantages on the TPA have also been discussed in the paper.
References
Bolle, M. J. (2007). Trade promotion authority (TPA)/fast-track renewal: Core labor standards Issues.
Bolle, M. J., & Library of Congress. (2007). Trade promotion authority (TPA)/fast-track renewal: Labor issues. Washington, D.C.: Congressional Research Service, Library of Congress.
Hornbeck, J. F., Cooper, W. H., & Library of Congress. (2006). Trade promotion authority (TPA): Issues, options, and prospects for renewal.
