Pacific trade pact returns to Senate for second test

Published 06/23/2015, 02:18 AM
© Reuters. Nurses rally against the fast tracking authority of the Trans-Pacific Partnership trade agreement in San Diego
CAT
-
INTC
-
PFE
-
WMT
-

By Krista Hughes and Richard Cowan

WASHINGTON (Reuters) - U.S. President Barack Obama's signature Pacific trade pact faces another test in the Senate on Tuesday as legislation needed to close the deal returns for a second run through the chamber.

The legislation has already endured six weeks of congressional wrangling and two close brushes with failure after revolts by Obama's own Democrats, many of whom believe trade deals will threaten U.S. jobs.

The bill, which would establish a fast track through Congress for trade deals, needs support from 60 senators to clear a procedural hurdle. Although the measure passed the Senate a month ago on a vote of 62-37, including backing from 14 Democrats, some may withdraw support.

Fast-track legislation gives lawmakers the right to set negotiating objectives for trade deals such as the 12-nation Trans-Pacific Partnership, or TPP, but restricts them to a yes-or-no vote on the final agreement.

Trading partners say they want fast-track legislation enacted before finalizing the TPP, which would be the biggest trade deal since the North American Free Trade Agreement liberalized commerce between the United States, Canada and Mexico two decades ago.

It took two attempts to pass this same procedural hurdle on the legislation's first run through

Opposition in the House of Representatives, where Democrats refused to renew a previously uncontroversial program providing aid to workers hurt by trade, has forced the measures apart again.

Senators will vote Tuesday on limiting debate on fast-track and - if that vote succeeds - on the actual bill on Wednesday, before tackling a second bill extending trade benefits to African nations. That bill now also contains the worker aid program.

Republicans want both measures to pass this week before Congress goes on a week-long break so that Obama can promptly sign them into law.

"If we simply vote the same way we did a couple of weeks ago, we won't miss this opportunity," Senate Majority Leader Mitch McConnell said on Monday.

© Reuters. Nurses rally against the fast tracking authority of the Trans-Pacific Partnership trade agreement in San Diego

The TPP, a potential legacy-defining agreement for Obama, would open markets for U.S. exporters like Intel Corp (NASDAQ:INTC) and Caterpillar Inc (NYSE:CAT), extend monopoly periods for Pfizer Inc (NYSE:PFE) and rivals' medicines and cut import costs for companies like Wal-Mart Stores Inc. (NYSE:WMT)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.