Administration Discusses KORUS Textile Safeguards at Senate Finance Hearing
At a May 26, 2011 Senate Finance hearing, Administration, business, and labor witnesses testified on their support for or opposition to the Korea Free Trade Agreement. This hearing addressed the Administration’s linkage of the pending FTAs and TAA, as well as some of the specific provisions in KORUS.
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KORUS Includes a Special Safeguard Mechanism
In his written statement, Deputy USTR Marantis discussed some of KORUS’ provisions for sensitive U.S. manufacturing industries like textiles. According to the Deputy USTR, KORUS includes a special textile safeguard mechanism the U.S. can invoke if South Korea textile exports cause, or threaten to cause, serious damage to domestic industry. The Deputy USTR also notes that strong customs cooperation provisions in KORUS will guard against illegal textiles transshipment and make sure textile provisions are vigorously enforced.
Baucus Working to Pass Package Including FTA and TAA
As in the recent hearing on the Panama Trade Promotion Agreement, Committee Chairman Baucus (D) and Ranking Member Baucus (R), expressed differing views about the Administration’s plans to link TAA to the pending FTAs.
According to a Committee press release, Chairman Baucus is working with House and Senate colleagues, as well as the Administration, to pass a package of trade measures including the pending FTAs and a robust, long-term extension of TAA for all eligible groups.
Senator Urges Administration to Pass TAA Before Sending FTAs to Congress
One Committee Member, Senator Wyden (D) urged the Administration to demonstrate even stronger support for TAA by waiting to submit the FTAs until both the House and Senate pass TAA legislation. (The Administration has stated that it will not submit the pending FTA implementing legislation packages to Congress until it reaches an agreement with Congress on TAA.)
Ranking Member Warns Expanded TAA May Not Pass Due to Cost
Ranking Member Hatch (R) continued to express opposition to linking TAA with the pending FTAs and warned that budget constraints may mean that there are not enough votes in Congress to pass the expanded (2009) version of TAA (which Hatch said was estimated to cost $7.2 billion over 10 years).
(See ITT’s Online Archives or 05/26/11 news, 11052624, for BP summary for Committee leadership disagreement on linkage of FTAs and TAA.
See ITT’s Online Archives or 05/12/11 news, 11051218, for BP summary of Chairman Baucus’ position that TAA must be enacted in tandem with the outstanding FTAs.
See ITT’s Online Archives or 05/17/11 news, [Ref:11051720}, for BP summary on the Administration’s announcement that it would not submit the implementing legislation packages to Congress until it reaches an agreement with Congress to renew the expanded TAA.)