Rep. Paul Ryan brings free market zeal to trade debate
Rep. Paul Ryan on Thursday brought his ideological love for free enterprise to the congressional debate over giving President Barack Obama âtrade promotion authority,â arguing that U.S. companies and consumers benefit from trade agreements far more than they are harmed. âThe thing about trade is, it can feel like a competition, where thereâs always a winner and always a loser,â the former vice-presidential candidate said in what was billed as his first major trade speech since taking the helm of the House Ways and Means Committee in January. âBut really, itâs more like a collaboration because both sides succeed. Otherwise, they wouldnât do it. More trade means more people from every country, buying, selling, investing, creating â all working together to build a better world.â Story Continued Below Ryan, who was speaking to trade policy professionals at the Washington International Trade Association, promised quick action on trade promotion authority, a bill that would help the White House bring home a pair of big new trade agreements. He also said he expected movement on a raft of other trade legislation including renewals of the Generalized System of Preferences and African Growth and Opportunity Act, which waive duties on imports from poor countries, as well as the Miscellaneous Tariff Bill, which cuts duties on manufacturing supplies that are hard to find, and a customs reauthorization and trade enforcement package. âTrade is good for America,â Ryan told group. âPeople have legitimate gripes with the global economy. But letâs be sure weâve grabbed the right culprit. The problem isnât when other countries play by the rules. Itâs when they break the rules, or rather, itâs when they rig the rules in their favor. And I would argue that the best solution to that is more trade agreements.â U.S. business groups welcomed the speech, which they hoped would help set the stage for Congress to pass a bipartisan trade promotion authority bill as early as March. However, Obama still has a tough job rounding up support for the bill from fellow Democrats. âWe think Chairman Ryan made a compelling case for why trade and U.S. trade agreements are drivers of U.S. growth, jobs and competitiveness in todayâs global economy,â said David Thomas, vice president for trade policy at the Business Roundtable, which leads a coalition of more than 250 business groups pushing for approval of TPA. But critics of U.S. trade policy seized on data released earlier on Thursday that showed the U.S. trade deficit widened sharply in December to $46.6 billion and also increased for the entire year to $505 billion. One economist called the record month-to-month rise âa bit of shocker,â signalling slower-than-expected U.S. economic growth. âThis abysmal new data shows how the past agreements that serve as the template for the trade deals Obama is now pushing destroy more middle-class jobs and further suppress wages,â Lori Wallach, head of Public Citizenâs Public Trade Watch, said in a statement underscoring the groupâs opposition to the proposed Trans-Pacific Partnership agreement with Japan and 10 other countries, including Vietnam and Malaysia. Wallach zeroed in on the record $25.1 billion U.S. trade deficit with South Korea, saying that proved a free trade pact with that country that Congress approved in 2011 has not delivered the export boom that supporters expected. âSince the Korea FTA, our trade deficit with Korea has surged more than 80 percent, which equates to the loss of more than 70,000 U.S. jobs â the same number of jobs that the administration promised would be gained under the FTA,â Wallach said. Ryan did not discuss the trade report in his speech and seemed to cherry-pick other statistics to highlight the benefits of the trade deal with South Korea and two other pacts with Panama and Colombia that were also passed in 2011. âVegetables to Korea, up 60 percent. Iron and steel to Colombia, up 100 percent. Household appliances to Panama, up 200 percent,â Ryan said. But he also argued the United States collectively has a trade surplus in manufactured goods trade with all 20 of its free trade partners, confirming âwhat we already knew: The American worker can compete with anybody if given a fair chance.â In addition, making a point rarely heard in the trade debate, Ryan said imports helped strengthen the U.S. economy, even though âglobal competition is tough.â âUltimately, thatâs a good thing. That means when families shop for groceries or buy a car, they have better choices. And thanks to lower duties on imports, the average American family of four saves $10,000 a year,â the congressional budget hawk said. In addition to his zeal for âfree enterprise,â which he mentioned five times in the speech, Ryan laid down a number of red lines for both the Asia-Pacific agreement and another big pact, the Transatlantic Trade and Investment Partnership under negotiation with the 28 nations of the European Union. For the TPP, Ryan warned that both Canada and Japan must agree to eliminate their prohibitively high tariffs and other barriers to U.S. agricultural exports. He also pressed Europe on that point, saying it must eliminate all tariffs and end labeling requirements and restrictions on U.S. agricultural imports that are not based on sound science. Ryan also vigorously defended the trade promotion authority bill, which would allow Obama to submit both the Asia-Pacific and European trade agreements to Congress for straight up-or-down votes without any amendments. He argued the legislation was much more than that, since it is the primary means by which Congress tells the executive branch what it wants in trade agreements. âI think of it more as a contract,â Ryan said. âWe say to the administration, if you want this up-or-down vote, you have to meet three requirements: Number one, you have to follow our guidelines. Number two, you have to talk to us. And number three, you have to remember: We get the final say.â He also insisted that Congress must approve TPA before the White House finishes negotiations on the Asia-Pacific pact because otherwise negotiators are unlikely to get the best possible deal. However, Rep. Sander Levin, the top Democrat on the Ways and Means Committee, has argued Congress should not approve TPA until it has a clear idea of what the final agreement looks like. âI agree with Chairman Ryan that when it comes to trade negotiations, Congress has to âget involved before the deal is done, not after itâs finished,â which is why Congress must maintain its leverage until we know the TPP negotiations are on the right path to a more effective conclusion,â the Michigan Democrat said. âThis is the most important trade negotiation in decades with economic ramifications for years to come. So we need to get it right.â But Ryan and Senate Finance Committee Chairman Orrin Hatch (R-Utah) have already agreed on different approach and are pushing toward a vote on the trade promotion bill this spring, followed by a possible vote on the Asia-Pacific trade deal in the fall if an agreement is reached in coming months. Failing to pass TPA and complete the Asia-Pacific deal would be a blow to U.S. leadership in the world, Ryan said, while finishing the deals âwould emphatically say: âYes. Yes, you can count on the United States. We will be there. We wonât abandon the field. We will stick up for free enterprise and free people.â