Grassley Lauds Japan Deal, Says He Hopes Congress Doesn't Have to Vote on It
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said the preview of the Japan trade agreement talked about at the G-7 may only be in principle so far, "but I think this Japanese agreement will give farmers some reason to smile." Grassley, who was speaking with reporters on a conference call Aug. 29, said the deal would give dairy producers, wheat farmers, beef and pork producers and ethanol producers better access to Japan's market in return for eliminating U.S. tariffs "on certain industrial products," and the tariffs on those products are already pretty low.
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"My understanding is the president believes this limited agreement … may not require congressional approval and I don’t think that’s much in dispute, but we’ll have to wait whether or not it requires a vote of Congress or not," he said. "And actually, I hope not." If U.S. tariffs are reduced by 5 percentage points or less, Trade Promotion Authority, known as fast-track, allows the executive branch to make the change without congressional approval (see 1907170071).
Some in Congress say that while fast-track does grant that authority, the law still calls for consultation. Grassley is not concerned that consultation requirements have not been met. "If consultation can be considered consultation when you have an overview meeting with the special trade representative, we've had those meetings in the Senate Finance Committee," he said in response to a question from International Trade Today. "I can’t tell you whether that qualifies or not according to TPA," he said, but he believes that senators that chose to attend had the opportunity to get their questions answered.
Grassley said he thinks the deal should be able to be completed in time for a late September signing. He called it a "very welcome development, it arrives at a time when farmers are hurting."
Even though the trade war with China is one of the reasons farmers are hurting, Grassley said farmers still are backing Trump. "This year trade came up as a topic of discussion in nearly every one of my meetings, and I can generalize that, there’s a lot of anxiety among farmers," he said. "But I haven’t heard people use these words to me: that I voted for Trump but I’m done with him now. Farmers are giving Trump some leeway negotiating with China."