Industry News

Congress to Consider FTAs, TAA Compromise, After August Recess

August 4, 2011


On Wednesday, August 3, 2011, Congressional leaders, including Senate Republican Leader Mitch McConnell (R-KY) and Senate Majority Leader Harry Reid (D-NV), announced that Congressional leaders have reached a compromise that will allow the three pending Free Trade Agreements (FTAs) with Korea, Panama, and Colombia, as well as Trade Adjustment Assistance (TAA), to move forward. Passage of the FTAs stalled in late June after Republicans on the Senate Finance Committee and House Ways and Means Committee voiced strong opposition to the Administration’s decision to include TAA in the Korea FTA. When Congress returns to session in September, the agreed upon path forward involves separate consideration of TAA legislation and the FTAs. According to Senator Reid, the planned path forward involves passage of a bipartisan compromise on TAA, followed by passage of the three FTAs. Submitting TAA separately from the FTAs will allow Senate Republicans to propose amendments to TAA. A trade agreement between South Korea and the European Union took force on July 1, while a trade agreement between Canada and Colombia is scheduled to take effect this month.

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