National Journal's CongressDailyPM
Issue date: Tuesday, July 19, 2005
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TRADE
Thomas Confirms Plans For China Vote Before CAFTA ...
House Ways and Means Chairman Thomas insisted today that a package of China trade measures he has endorsed will come to the floor before the House votes on the Central America Free Trade Agreement. "If it isn't brought up, the argument on the floor will be, it isn't very good and we're going to lose it so they're not bringing it up," he told reporters at a National Press Club breakfast today. Thomas said the Ways and Means Committee report on CAFTA will be filed today, with the aim of bringing it up before the August recess. In a related development, Sen. Susan Collins, R-Maine, is preparing to introduce as early as today a revised version of her bill to allow the use of countervailing duties against imports from non-market economies like China, according to a spokeswoman. The changes would bring the measure closer to the version introduced last week by Thomas and Rep. Phil English, R-Pa.
Thomas defended the decision to hold a vote on a package of China trade provisions despite objections from the business community that bilateral trade might be adversely affected. China is not being singled out, Thomas said, because a provision granting the Commerce Department new authority to impose countervailing duties would apply to other non-market economies as well. A requirement for the Treasury Department to complete a report on currency manipulation would affect a number of Asian countries, not just China, he said. "I don't think China needs us pointing out that we have some concerns; China is well aware of the world's concerns about China," Thomas said. In addition, Thomas argued that the House legislation on China is far preferable to legislation offered by Sens. Charles Schumer, D-N.Y., and Lindsey Graham, R-S.C., that could result in punitive tariffs. "My concern is that we tip into legislation that says specifically China, and says there is a violation and specifically punishes them for that violation -- i.e. the Schumer legislation -- which is judge, jury and hangman all in one legislation," he said.
Separately, Thomas pledged in a Monday letter to help Rep. Bob Inglis, R-S.C., enact legislation to limit the impact of certain textile and apparel provisions of CAFTA on U.S. producers. But Thomas did not offer a commitment to move that legislation before the CAFTA vote. Regarding a proposed agreement to change CAFTA's rule of origin to prevent the use by Central American countries of pockets and"If USTR is able to secure an agreement with the [CAFTA] countries ... I will work with you to move expeditiously legislation implementing that agreement." linings from outside the region, Thomas wrote, Thomas wrote that legislation might also be required to implement an agreement with Nicaragua to restrain its ability to use negotiated tariff-preference levels to source from outside the United States or Central America, depending on the details of the agreement. -- by Martin Vaughan

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TRADE
.. As Portman Details Labor Aid Plans For Central America
Trade Representative Portman, speaking today at the Inter-American Development Bank, announced details of a $20 million FY05 appropriation for labor and environment efforts in Central America. Of those funds, $7 million will be used to train judges in labor courts in the region; $7 million will go to beefing up labor inspection capabilities, which includes providing vehicles and other inspection support; $3 million will be used to combat discrimination against women, including a program to educate workers about the illegal practice of routine pregnancy testing; and $1 million to stem the trade in endangered species. Under an agreement with Sen. Jeff Bingaman, D-N.M. -- negotiated in exchange for his vote in favor of CAFTA
-- the remaining $3 million will be used to fund International Labor Organization monitors to report on whether CAFTA countries are meeting self-imposed benchmarks in improving labor enforcement.
A House vote on CAFTA is expected next week -- and administration officials are seeking to convince on-the-fence House Democrats that the agreement will improve labor standards in Central America and the Dominican Republic. Minority Whip Hoyer told reporters today that while the majority of Democrats will oppose CAFTA, he expects it to pass if it hits the floor next week. "[Republicans] usually do [get the votes] and on this you would think that they would probably get there," he said, noting that he will vote against the agreement. Democrats have not initiated a formal whip on CAFTA, but Hoyer said he, Minority Leader Pelosi and members of the whip team have made clear their reasons for opposing the pact in discussions with members. Hoyer said he and Pelosi agreed early on not to apply the pressure of a party-line vote on CAFTA. "We don't want to make the issue of free trade a whipped party issue," he said.
Rep. Sander Levin, D-Mich., a leading CAFTA critic, today said Democrats will not be fooled by last-minute efforts to sweeten CAFTA's labor terms. "What they are doing is scrambling now, instead of facing up to the labor issue before CAFTA was negotiated," he said. Levin has called for the Bush administration to renegotiate CAFTA's labor provisions. House Ways and Means Chairman Thomas told reporters at a National Press Club breakfast that Levin himself should seek agreement from Central American officials on labor changes to CAFTA. He said he was willing to make changes that involved renegotiating textile and apparel provisions from CAFTA only because interested members including Rep. Bob Inglis, R-S.C., had worked with Central Americans to obtain agreement in those areas. "I don't think at this point Mr. Portman wants to deputize any members of Congress to renegotiate the agreement," Levin said. Contrary to Thomas' assertion, He said, it was Portman who secured the commitment from CAFTA ambassadors on textiles and apparel, not Inglis.
Also, at a news conference with representatives of the National Farmers Union, which opposes CAFTA, Rep. Charlie Melancon, D-La., said Sen. Norm Coleman, R-Minn., who brokered a deal on sugar two weeks ago, and others who support CAFTA will suffer politically if it passes. Farmers who are hurt by the deal "will seek retribution," Melancon said. Rep. Earl Pomeroy, D-N.D., called the Senate deal on sugar "no deal" for sugar growers, but added he does not feel confident about defeating CAFTA. -- by Martin Vaughan and Susan Davis, with Jerry Hagstrom contributing
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