Retailers embrace key trade legislation

Major retailers, trade groups and politicians sounded a euphoric and bipartisan tone last week following the introduction of trade legislation with potentially huge implications for the retail industry and the U.S. economy.

What got the retail industry so worked up was the introduction of the rather droll sounding, “Bipartisan Congressional Trade Priorities and Accountability Act of 2015.” The mere introduction of the bill by Senate Finance Committee Chairman Orin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) and House Ways and Means Chairman Paul Ryan (R-Wis.), prompted an outpouring of congratulatory remarks, including some from President Barack Obama.

“It’s no secret that past trade deals haven’t always lived up to their promise, and that’s why I will only sign my name to an agreement that helps ordinary Americans get ahead. At the same time, at a moment when 95% of our potential customers live outside our borders, we must make sure that we, and not countries like China, are writing the rules for the global economy,” President Obama said in a statement. “The bill put forward today would help us write those rules in a way that avoids the mistakes from our past, seizes opportunities for our future, and stays true to our values. It would level the playing field, give our workers a fair shot, and for the first time, include strong fully enforceable protections for workers’ rights, the environment, and a free and open internet.”

The trade promotion authority (TPA) legislation would update legislation last approved in 2002. Its introduction, and what would appear to be eventual passage, is a necessary precursor for the President to negotiate and finalize free trade agreements such as the Trans-Pacific Authority Agreement (TPP) and the Environmental Goods Agreement (EGA), both of which are seen benefitting the retail industry.

"TPA will ensure the (Obama) Administration brings home trade agreements that creates new opportunities for American businesses and bolsters U.S. competitiveness around the world,” said Hun Quach, vice president for international trade with the Retailer Industry Leaders Association (RILA).

That’s because the TPA is designed to provide the executive branch with clear negotiating objectives for U.S. trade agreements, requires robust consultations with Congress and the public, and sets forth an updated process for Congress to consider trade agreements if these requirements are met, according to RILA. The TPA legislation will strengthen provisions to raise labor and environmental standards, create a level playing field for businesses and workers around the world, and ensure that new issues, such as state-owned enterprises and digital trade, are addressed in future trade agreements, according to RILA.

As part of the agreement, RILA said it supports a comprehensive, high-standard Trans-Pacific Authority Agreement with a membership and coverage that provides significant market access opportunities in all sectors. The most important issues for retailers in the agreement, which covers 14 Asian countries except China, are the elimination of duties and creation of workable rules on high-tariff items, such as apparel and footwear.

Paul Ryan does a nice job of explaining the benefits of the TPA legislation in this video and there is also a frequently asked questions section here. Those hardy enough to read the actual legislation can find it here.