Congress must reauthorize TPA in 2005 to ensure that the president can effectively negotiate with trading partners to improve market access for U.S. farmers and businesses.

• The president’s Trade Promotion Authority (TPA) will expire at the end of May 2005 unless the president requests an extension of that authority and Congress does not oppose granting the extension. TPA allows trade agreements crafted with the benefit of close congressional and private-sector cooperation to be approved and implemented, or rejected, by Congress on a simple yes or no vote. This procedure pre-vents disruption by special interest amendments of carefully negotiated compromises in agreements.

TPA gives U.S. trade negotiators credibility at the negotiating table and ensures congressional and public participation in shaping the U.S. trade policy agenda.

• TPA gives Congress an active and central role in trade negotiations: Congress determines U.S. negotiating objectives and requires the president to consult with Congress and the public before and during negotiations. Without TPA, congressional and public influence over trade policy would be weakened.
• TPA gives U.S. negotiators credibility because our trading partners know that Congress must accept or reject carefully negotiated agreements. Because our trading partners know the deal negotiated by the president is final, they are more likely to grant substantial concessions that benefit U.S. business, farmers and consumers.
• Since receiving Fast Track in 1974 and TPA in 2002, the president has had unprecedented success in furthering U.S. negotiating objectives: the Tokyo Round of the General Agreement on Tariffs and Trade (GATT); the World Trade Organization (WTO) agreement; the North American Free Trade Agreement (NAFTA); free trade agreements with Israel, Chile, Singapore, Australia and Morocco; and agreements with Bahrain, the Dominican Republic and Central America have been completed and are awaiting congressional approval. Talks are moving forward with the nations of South Africa and the Americas and in the WTO Doha negotiations. Without renewal of TPA, the president’s ability to continue such successful negotiations will be undermined.

TPA renewal is vital to continued U.S. leadership in the global trade arena.

• Since the conclusion of the Uruguay Round of international trade negotiations in 1994, American exports of goods and services have risen by more than $300 billion as a result of lowered trade barriers.
• Between 1994 and 2002, when the president did not have TPA, the United States fell dangerously behind the European Union in negotiating free trade agreements and investment agreements, causing U.S. businesses and farmers to lose market share in Latin America, Africa and Asia.
• The WTO Doha Round is particularly important to U.S. farmers because all countries have agreed to work to eliminate all agricultural export subsidies that hinder American farmers’ ability to compete in the global marketplace.

America’s continued leadership in the world trading system requires continued TPA authority for the president.