Ways-Means Votes on Taiwan Trade Deal

The House Ways and Means Committee unanimously approved legislation (HR 4004) to approve the first phase of the US-Taiwan Initiative on 21st Century Trade, despite the Administration’s insistence that the deal does not require Congressional action.

Members from both sides of the political aisle said the legislation is needed to assert Congressional authority over trade and to ensure the Administration keeps Congress in the loop as it continues negotiations with Taiwan.

“What’s particularly encouraging about this legislation is that it represents a bipartisan effort to reassert Congress’s constitutional authority, committee chairman Jason Smith (R-Mo). “I am proud to join Democrats and Republicans in both the House and Senate in leading this effort. When it comes to trade, we are speaking with one voice that this Administration, or any future Administration for that matter, must not circumvent Congress or the Constitution, and that the President does not have the authority to bind the United States in trade agreements without congressional involvement and approval.”

In addition to providing for Congressional approval of the initial US-Taiwan trade deal, the bill imposes new consultation and transparency requirements on the Administration with respect to the negotiation of any subsequent agreements arising under the initiative, and requires such agreements be subject to Congressional approval.

Unhappiness with Administration
Committee members said they are satisfied with the first-phase agreement reached with Taiwan, but very unhappy with the Administration’s attempt to negotiate trade deals without Congressional consent.

“The US Constitution gives Congress exclusive authority to regulate foreign commerce,” committee ranking Democrat Richard Neal (Mass) said. “This legislation approves what the Administration has negotiated with Taiwan and sets forth strong consultation and transparency requirements that ensure future trade agreements with Taiwan carry the will of the American people behind them.”

The legislation was introduced in the Senate by Finance Committee Chairman Ron Wyden (D- Ore) and ranking Republican Mike Crapo (Idaho).

The first agreement under the US-Taiwan initiative covers the areas of customs administration and trade facilitation, good regulatory practices, services domestic regulation, anticorruption and small and medium-sized enterprises.

Still under negotiation are chapters on agriculture, standards, digital trade, labor, environment and state-owned enterprises. Ways and Means Democrats said they want to see labor provisions in the US-Taiwan initiative that are as strong and enforceable as those in the US-Mexico-Canada Agreement.