Fast track (trade)
Encyclopedia
The Fast track negotiating authority (also called Trade Promotion Authority, TPA) for trade agreements is the authority of the President of the United States
to negotiate agreements that the Congress can approve or disapprove but cannot amend or filibuster
. Fast-track negotiating authority is granted to the president by Congress. It was in effect pursuant to the Trade Act of 1974
from 1975 to 1994 and was restored in 2002 by the Trade Act of 2002
. It expired at midnight on July 1, 2007.
Congress enacted fast track in the Trade Act of 1974. Pursuant to that grant of authority, Congress then enacted implementing legislation for the Trade Agreements Act of 1979, the United States-Israel Free Trade Area
, the United States-Canada Free Trade Agreement
, the North American Free Trade Agreement
(NAFTA), and the Uruguay Round Agreements Act
(URAA). The authority then expired in 1994.
Presidential candidate George W. Bush
made fast track part of his campaign platform in 2000. In May 2001, as president he made a speech about the importance of free trade at the annual Council of the Americas
in New York, founded by David Rockefeller
and other senior US businessmen in 1965. Subsequently, the Council played a role in the implementation and securing of TPA through Congress.
At 3:30 am on July 27, 2002, the House
passed the Trade Act of 2002 narrowly by a 215 to 212 vote with 190 Republicans and 27 Democrats making up the majority. The bill passed the Senate
by a vote of 64 to 34 on August 1, 2002.
Under the second period of fast-track authority, Congress enacted implementing legislation for the United States-Chile Free Trade Agreement, the United States-Singapore Free Trade Agreement
, the United States-Australia Free Trade Agreement
, the United States-Morocco Free Trade Agreement
, the Dominican Republic-Central America-United States Free Trade Agreement
, the United States-Bahrain Free Trade Agreement, the United States-Oman Free Trade Agreement
, and the Peru Trade Promotion Agreement. Other agreements may come to Congress under fast track, notably: the Colombia Trade Promotion Agreement
, the South Korea – United States Free Trade Agreement, and the Panama – United States Trade Promotion Agreement.
The authority will cover implementing bills with respect to trade agreements entered into before July 1, 2007. (.) The authority expired on July 1, 2007, without being renewed by Congress. Nonetheless, the authority will be available for Congressional consideration of free trade agreements with Panama, Colombia, and Korea, all of which the United States signed before the deadline.
s of the House and Senate or their designees must introduce the implementing bill submitted by the President on the first day on which their House is in session. (.) Senators and Representatives may not amend the President’s bill, either in committee or in the Senate or House. (.)
The committees to which the bill has been referred have 45 days after its introduction to report the bill, or be automatically discharged, and each House must vote within 15 days after the bill is reported or discharged. (.) In the likely case that the bill is a revenue bill (as tariff
s are revenues), the bill must originate in the House (see U.S. Const., art I, sec. 7), and after the Senate received the House-passed bill, the Finance Committee
would have another 15 days to report the bill or be discharged, and then the Senate would have another 15 days to pass the bill. (.) On the House and Senate floors, each Body can debate the bill for no more than 20 hours, and thus Senators cannot filibuster the bill and it will pass with a simple majority vote. (.) Thus the entire Congressional consideration could take no longer than 90 days.
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
to negotiate agreements that the Congress can approve or disapprove but cannot amend or filibuster
Filibuster
A filibuster is a type of parliamentary procedure. Specifically, it is the right of an individual to extend debate, allowing a lone member to delay or entirely prevent a vote on a given proposal...
. Fast-track negotiating authority is granted to the president by Congress. It was in effect pursuant to the Trade Act of 1974
Trade Act of 1974
The Trade Act of 1974 was passed to help industry in the United States become more competitive or phase workers into other industries or occupations.-Fast track authority:...
from 1975 to 1994 and was restored in 2002 by the Trade Act of 2002
Trade Act of 2002
The Trade Act of 2002 granted the President of the United States the authority to negotiate trade deals with other countries and gives Congress the approval to only vote up or down on the agreement, not to amend it. This authority is sometimes called fast track authority, since it is thought to...
. It expired at midnight on July 1, 2007.
Enactment and history
The laws that create fast track appear in sections 151 through 154 of the Trade Act of 1974, as amended. Sections 2103 through 2105 of the Trade Act of 2002 extended and conditioned their application.Congress enacted fast track in the Trade Act of 1974. Pursuant to that grant of authority, Congress then enacted implementing legislation for the Trade Agreements Act of 1979, the United States-Israel Free Trade Area
US-Israel Free Trade Agreement
The United States-Israel Free Trade Agreement is a trade pact between the State of Israel and the United States of America established in 1985 that lowers some barriers to trade in some goods.- History of Trade Agreement :...
, the United States-Canada Free Trade Agreement
Canada-United States Free Trade Agreement
The Free Trade Agreement was a trade agreement signed by Canada and the United States on October 4, 1988. The agreement, finalized by October 1987, removed several trade restrictions in stages over a ten year period, and resulted in a great increase in cross-border trade...
, the North American Free Trade Agreement
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
(NAFTA), and the Uruguay Round Agreements Act
Uruguay Round Agreements Act
The Uruguay Round Agreements Act was an Act of Congress in the United States that implemented in U.S. law the provisions agreed upon at the Uruguay Round of negotiations of the General Agreement on Tariffs and Trade .- Legislative history :U.S...
(URAA). The authority then expired in 1994.
Presidential candidate George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
made fast track part of his campaign platform in 2000. In May 2001, as president he made a speech about the importance of free trade at the annual Council of the Americas
Council of the Americas
Council of the Americas is an American business organization whose goal is promoting free trade, democracy and open markets throughout the Americas. This includes Canada, Mexico and the Caribbean, as well as South America. Its members share a common commitment to economic and social development,...
in New York, founded by David Rockefeller
David Rockefeller
David Rockefeller, Sr. is the current patriarch of the Rockefeller family. He is the youngest and only surviving child of John D. Rockefeller, Jr. and Abby Aldrich Rockefeller, and the only surviving grandchild of oil tycoon John D. Rockefeller, founder of Standard Oil. His five siblings were...
and other senior US businessmen in 1965. Subsequently, the Council played a role in the implementation and securing of TPA through Congress.
At 3:30 am on July 27, 2002, the House
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
passed the Trade Act of 2002 narrowly by a 215 to 212 vote with 190 Republicans and 27 Democrats making up the majority. The bill passed the Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
by a vote of 64 to 34 on August 1, 2002.
Under the second period of fast-track authority, Congress enacted implementing legislation for the United States-Chile Free Trade Agreement, the United States-Singapore Free Trade Agreement
US-Singapore Free Trade Agreement
The United States-Singapore Free Trade Agreement was signed 6 May 2003 and ratified by the US House of Representatives on 24 July 2003 by a vote of 272-155. The US Senate ratified the bill on 31 July 2003 by a vote of 66-32. President George W. Bush signed into law the United States-Singapore Free...
, the United States-Australia Free Trade Agreement
Australia-United States Free Trade Agreement
The Australia – United States Free Trade Agreement is a preferential trade agreement between Australia and the United States modelled on the North American Free Trade Agreement . The free trade agreement was signed on 18 May 2004, ratified by the U.S. House of Representatives on 14 July 2004 by a...
, the United States-Morocco Free Trade Agreement
United States-Morocco Free Trade Agreement
The US-Morocco Free Trade Agreement is a bilateral trade agreement between the United States and Morocco. The agreement was signed on June 15, 2004, followed by U.S. President George W. Bush's signing of the USMFTA Implementation Act on June 17, 2004. The United States House of Representatives...
, the Dominican Republic-Central America-United States Free Trade Agreement
Dominican Republic-Central America Free Trade Agreement
The Dominican Republic – Central America Free Trade Agreement, commonly called DR-CAFTA, is a free trade agreement . Originally, the agreement encompassed the United States and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and was called CAFTA...
, the United States-Bahrain Free Trade Agreement, the United States-Oman Free Trade Agreement
US-Oman Free Trade Agreement
The U.S.-Oman Free Trade Agreement is a trade pact between Oman and the United States. On November 15, 2004, the George W. Bush administration notified the U.S. Congress of its intent to sign a trade agreement with the Middle Eastern Sultanate of Oman...
, and the Peru Trade Promotion Agreement. Other agreements may come to Congress under fast track, notably: the Colombia Trade Promotion Agreement
Colombia Trade Promotion Agreement
The United States-Colombia Trade Promotion Agreement , is a bilateral free trade agreement between the United States and Colombia. Sometimes called the Colombia Free Trade Agreement, it was signed on November 22, 2006, by Deputy U.S...
, the South Korea – United States Free Trade Agreement, and the Panama – United States Trade Promotion Agreement.
The authority will cover implementing bills with respect to trade agreements entered into before July 1, 2007. (.) The authority expired on July 1, 2007, without being renewed by Congress. Nonetheless, the authority will be available for Congressional consideration of free trade agreements with Panama, Colombia, and Korea, all of which the United States signed before the deadline.
Procedure
If the President transmits a trade agreement to Congress, then the majority leaderMajority leader
In U.S. politics, the majority floor leader is a partisan position in a legislative body.In the federal Congress, the role differs slightly in the two houses. In the House of Representatives, which chooses its own presiding officer, the leader of the majority party is elected the Speaker of the...
s of the House and Senate or their designees must introduce the implementing bill submitted by the President on the first day on which their House is in session. (.) Senators and Representatives may not amend the President’s bill, either in committee or in the Senate or House. (.)
The committees to which the bill has been referred have 45 days after its introduction to report the bill, or be automatically discharged, and each House must vote within 15 days after the bill is reported or discharged. (.) In the likely case that the bill is a revenue bill (as tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s are revenues), the bill must originate in the House (see U.S. Const., art I, sec. 7), and after the Senate received the House-passed bill, the Finance Committee
United States Senate Committee on Finance
The U.S. Senate Committee on Finance is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection...
would have another 15 days to report the bill or be discharged, and then the Senate would have another 15 days to pass the bill. (.) On the House and Senate floors, each Body can debate the bill for no more than 20 hours, and thus Senators cannot filibuster the bill and it will pass with a simple majority vote. (.) Thus the entire Congressional consideration could take no longer than 90 days.
Further reading
- Dauster, William G. Trade Promotion Authority Annotated. Washington, D.C.: Government Printing Office, 2007. Senate print 110-10.
- Rockefeller, David. Memoirs, New York: Random House, 2002.
- Smith, Carolyn C. Trade Promotion Authority and Fast-Track Negotiating Authority for Trade Agreements: Major Votes. Washington, D.C.: Congressional Research ServiceCongressional Research ServiceThe Congressional Research Service , known as "Congress's think tank", is the public policy research arm of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a...
, 2006. - Tucker, Todd and Lori Wallach. The Rise and Fall of Fast Track Trade Authority. Washington, D.C.: Public CitizenPublic CitizenPublic Citizen is a non-profit, consumer rights advocacy group based in Washington, D.C., United States, with a branch in Austin, Texas. Public Citizen was founded by Ralph Nader in 1971, headed for 26 years by Joan Claybrook, and is now headed by Robert Weissman.-Lobbying Efforts:Public Citizen...
, 2009.