By Krista Hughes and Richard Cowan
WASHINGTON (Reuters) - Senators reached a deal on Wednesday to move forward this week with legislation key to a pan-Pacific trade pact, a day after a Democratic rebellion dealt a blow to the White House's trade agenda.
A compromise between Republicans and Democrats would set up another procedural vote on "fast-track" trade authority crucial to the Trans-Pacific Partnership (TPP) pact, including aid for workers who lose their jobs due to trade. The first such procedural vote failed on Tuesday.
Two other trade bills, a customs bill including rules against currency manipulation and one extending African trade benefits, would be considered separately - but cannot be amended, and need to win 60 votes for passage in the 100-member Senate.
If Thursday's procedural vote on fast-track authority succeeds, it sets up a full debate next week on the legislation, which is a key part of President Barack Obama's pivot to counter China's rising economic and diplomatic clout in Asia.
The authority would be twinned with the relatively uncontroversial worker assistance program, designed to help those who may lose their jobs due to expanded trade.
"The plan ... will provide our Democratic colleagues with a way forward without killing the bill," Senate Majority Leader Mitch McConnell of Kentucky said on the Senate floor after 24 hours of negotiations to break the impasse.
On Tuesday, all but one of the Senate's 44 Democrats teamed up to block debate on the legislation, amid concerns about the impact of the proposed 12-nation TPP on U.S. workers.
Democrats also want legislation to punish countries that artificially reduce the value of their currencies by mandating import duties to offset any boost to competitiveness. That approach has been tried several times before but never won the necessary congressional support.
The move is backed by some Republicans but opposed by the White House, which has warned that such rules could breach international trade laws and open the United States to retaliation.
The customs bill contains a second measure to bar currency manipulators from U.S. trade deals and government procurement, which the White House supports.
Two Democratic aides said they were optimistic the customs bill could pass.
But Republican John Thune of South Dakota, a member of the Senate leadership team, said opening the door to import duties was a tough request.
"If it has currency manipulation attached to it, it makes it a harder lift," he told reporters.
Even if the currency manipulation measure is approved, there were no assurances that the House of Representatives would approve it.
FAST TRACK PITS OBAMA AGAINST WARREN
Under fast-track, Congress can approve or reject - but not amend - trade deals negotiated by the administration, including the TPP, a potential legacy-defining achievement for Obama.
The battle over trade has exposed rifts between Obama and Senator Elizabeth Warren of Massachusetts, a prominent leader of the party's left wing.
There is a risk that if the Democratic spat continues, it could draw in presidential hopeful Hillary Clinton, who supported the Trans-Pacific Partnership when in office but who has gone silent on the issue during the current debate.
Negotiations on the TPP are nearly complete, but trading partners have said they want to see fast-track legislation enacted before finalizing the pact, which would stretch from Japan to Chile.
The pact would be the biggest trade deal since the North American Free Trade Agreement (NAFTA) liberalized business between the United States, Canada and Mexico.