The Obama administration is seeking heightened authority in trade deals, allowing the Executive Branch to smooth congressional negotiations on accords.
The two major deals, both long in the works, that are likely to be subject to such legislation are the 12-nation Trans-Pacific Partnership (TPP) and the 28-nation pact with the European Union, the Trans-Atlantic Free Trade Agreement (TAFTA).
The deals would establish the world’s largest so-called free-trade zones.
The Trans-Pacific Partnership has come under much scrutiny for being negotiated among the US and 11 other nations along the Pacific Rim: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Critics cite serious concerns over how provisions of the project could, for example, drive up the price of medications and other goods across the world.
The White House’s reluctance to provide details to leading lawmakers responsible for America’s trade plans has caused a rift within the President’s own political party.
The Obama administration has been considering TPP provisions that would allow foreign corporations operating within the United States to appeal regulations on the environment, labor and banking that would be enforced on American-owned businesses with no chance of reprieve.
Under the provisions, while the US could be sanctioned for failing to impose regulations on American-run businesses, multinational corporations are given a direct path by the TPP to file such appeals.
If one of the Pacific nations chooses to go down that route, their plea would be heard by an international tribunal that could overrule US law.
White House Press Secretary Jay Carney said that while he had not seen details on the new proposed legislation, “when there’s progress it’s a good thing,” according to BusinessWeek.
http://rt.com/usa/tpp-obama-legislation-trade-395/