A simmering battle over free trade may erupt on Thursday as Senate leaders announce legislation designed to win over sceptical Democrats who claim too many international deals are being conducted in secret.
Amid fierce opposition from Democrats to a White House request to negotiate deals with Asia and Europe, Orrin Hatch and Ron Wyden of the Senate finance committee were poised to announce a fresh trade promotion authority (TPA) bill that would give Congress more time to scrutinise such agreements.
According to a source, Hatch and Wyden have also finalised proposals to introduce an extra step to allow the committee to block emerging deals before they reach the Senate for a final vote.
Traditionally, US administrations have sought “fast-track” agreement from Congress to allow them to negotiate with foreign governments in secret – and only return to Capitol Hill for final ratification.
However, that has caused alarm among unions and many Democrats who fear further erosion of US manufacturing jobs to Asia.
There is also concern in Europe and the US that separate Transatlantic Trade and Investment Partnership (TTIP) talks will allow big corporations to override the government on issues such as health and environmental regulation.
But Barack Obama and other world leaders are looking to Congress to greenlight what supporters argue is a vital component of global economic growth.
At an initial hearing of the Senate finance committee on Thursday morning, Hatch and Wyden hinted they were close to announcing their legislation and said they would recall members later today to discuss the details.
Chief among the concessions negotiated by Wyden, a Democrat, is an agreement he claims means that “before the president signs a trade agreement, it will be public for a significant amount of time”.
“My view is that if you believe in trade and you want more of it, the last thing you want is this secrecy that makes the American public so sceptical,” he said. “It’s time to pull this out of the timewarp and deliver more transparency.”
However, the still limited congressional oversight is unlikely to satisfy many critics in the Democratic party, who argue the notion of replacing fast-track with so-called “smart-track” trade authority will not prevent the administration negotiating away many vital trade protections.
“It is a race to the bottom,” said independent senator Bernie Sanders in a conference call with liberal activists on Wednesday evening. “Our workers should not be asked to compete against people who are making 56¢ an hour.”
Opponents of the deal also held a union rally on Capitol Hill on Wednesday attended by Democratic senators Sherrod Brown, Al Franken and Elizabeth Warren and representatives Rosa DeLauro and Keith Ellison.
Privately, committee staffers involved in drafting the the trade authority bill acknowledge they are unlikely win over more determined opponents, but hope the concessions agreed with Republicans and the White House will help increase the number of Democrats supporting the bill in the Senate from half a dozen to up 15.
Meaningful Democratic support in the Senate is seen as a vital precursor before a bigger battle in the House of Representative where many Tea Party Republicans are expected to join Democrats in opposing the granting of fast-track authority.
But Republican leaders in Congress are united in a rare alliance with Obama on the importance of granting relatively unfettered freedom to US negotiators.
“No potential trade partner is going to give our negotiators their best offer unless they know we can deliver on the deal,” Hatch told Thursday’s hearing. “We have to speak with one voice.”
