Senior lawmakers reached agreement Thursday on a bipartisan trade promotion authority bill that has already ignited a fierce fight between President Barack Obama and liberal Democrats like Sen. Elizabeth Warren.

Two Republicans — Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Committee Chairman Paul Ryan — negotiated for months on the “fast track” trade legislation with Sen. Ron Wyden, an Oregon Democrat who has faced intense pressure from labor and progressive groups to walk away from the talks.


Obama needs the legislation to finish negotiations on the proposed Trans-Pacific Partnership agreement with Japan and 10 other countries, a trade deal that would be the largest ever for the United States and mark a signature achievement for the administration.

The White House faces a particularly tough battle in the House, but is under pressure to show movement on the legislation before Japanese Prime Minister Shinzo Abe visits Washington at the end of this month. Hatch said earlier today he hopes to move quickly in the Senate. The House could also advance the legislation s0on.

Proponents say trade promotion authority is essential to negotiating good trade agreements because it gives other countries some assurance that lawmakers won’t pick the deal apart during congressional debate. Opponents say it is undemocratic and allows negotiators to insert provisions in trade deals that wouldn’t pass muster on their own.

The decades-old Trade Adjustment Assistance program to help retrain workers displace by trade emerged as a final obstacle in talks on the TPA bill. Many Republicans question the value of the program, but it often moves in conjunction with trade agreements to bolster Democratic support for the deals.

Those talks appeared to be mainly between Wyden and Ryan, who is said to be pushing for a lower level of funding than union groups feel is needed to run an adequate program. Hatch, Wyden and Ryan did not release details of the TAA deal. However, the bill is expected to move separately from TPA so Republicans can vote against it.

“The bottom line for us is there will be no TPA if there’s not a strong TAA,” Sen. Debbie Stabenow, a Michigan Democrat, told reporters Wednesday evening.

Meanwhile, Wyden obtained provisions in the TPA bill that could make it easier to strip the “no amendment” fast track protections from a trade agreement if key congressional committees decide the administration has not met negotiating objectives or has failed to consult adequately with Congress during negotiations.

TPP LOOMS OVER TALKS

The specter of the pending Pacific trade deal will be one of the challenges confronted by TPA’s champions as they next attempt to gather the votes needed. The pact stirs strong emotions on both sides of the debate.

The AFL-CIO fears the trade agreement will depress wages and encourage companies to move production overseas, while business groups such as the Chamber of Commerce says it will increase exports and boost jobs.

Warren, who has turned aside pleas from progressive Democrats to run for president, put herself firmly in the labor camp at a Capitol Hill rally against the trade legislation on Wednesday.

“Are you ready to fight any more deals that say ‘we’re going to help the rich get richer and leave everybody else behind’?,” she asked to roars of approval from hundreds of steelworkers and other union members. “Workers have to fight back. I’m proud to be with you and I’m going to be with you all the way.”

The former Harvard Law School professor is a relative newcomer to the fight led by progressive Democrats like Rep. Rosa DeLauro in the House. But many hope the Massachusetts senator’s emergence as a leader of her party’s liberal wing will put pressure on prominent Democrats — including presidential candidate Hillary Clinton — to take a stand on controversial areas of Obama’s trade agenda, including the fast-track bill.

Warren’s vocal opposition to fast track stands in stark contrast to Clinton’s silence on the issue and the former secretary of state’s advocacy for Obama’s Trans-Pacific Partnership pact.

Clinton’s office has not responded to queries about her position on fast track.

The trade promotion authority bill establishes detailed congressional negotiating objectives in traditional trade areas such as agriculture, manufacturing and services. It also lays out objectives for handling newer concerns, like how to ensure foreign “state-owned enterprises” play by the same rules as U.S. private companies and foreign countries don’t impose barriers that make it difficult for giant U.S. internet companies to operate across borders.

Many Democrats argue approving the objectives now is too late in the game to influence the outcome of the TPP pact, which could be concluded in coming months after more than five years of negotiations. However, the Obama administration says it has closely consulted with Congress as it has negotiated the Asia-Pacific pact.

Rep. Dan Kildee, just back from a trip to Asia with other congressional Democrats, said he doubted the agreement would really require Japan to open its market to more U.S. auto imports or Vietnam to raise labor standards, despite White House assurances on those fronts.

“I started off cynical on this in the first place,” the Michigan Democrat told reporters. “But anybody who went with an open mind and heard what we heard in Japan and saw what we saw in Vietnam would have to have really serious questions about whether or not this agreement lives up to what it is billed to be.”

Most Republicans are mainly interested in new export opportunities provided by the TPP agreement, rather than labor and environmental objectives pushed by Democrats. They believe the Obama administration won’t be able to finish the marathon TPP talks unless Congress first approves trade promotion authority.

“That up-or-down vote is the key,” Sen. John Thune said. “That’s what gives our trading partners the confidence to put their best offers on the table, which allows for a successful conclusion of negotiations.”

The breakthrough on the fast track bill helps clear the way for action on several other pieces of trade legislation, too, including trade preference programs for Africa and developing countries.

Adam Behsudi and Victoria Guida contributed to this report.

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