Trade Issues in the 109th Congress: Policy Challenges and Opportunities

Publication Date: March 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Trade

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Abstract:

The 108th Congress completed a full trade agenda with the passage of legislation on a broad spectrum of issues. The 109th Congress is expected to face a trade agenda that will be at least as extensive, covering a wide range of issues, from extension of presidential trade promotion (fast track) authority to consideration of more free trade agreements and oversight of the World Trade Organization (WTO) trade negotiations. In some respects these issues are distinct, each with its own policy and economic implications. In other respects the issues are interrelated. They have emerged from common sets of domestic political, foreign policy, and economic factors and affect or are affected by the concerns of Members of Congress, of other policymakers and of many interest groups. These issues and how policymakers deal with them will define overall U.S. trade policy.

Several sets of issues will likely come before the 109th Congress. The Bush Administration is expected to request a two-year extension of its trade promotion authority. This extension would be granted unless one House of the Congress passes a joint resolution of disapproval. The Congress will probably also debate U.S. participation in the WTO as it considers congressional resolutions to withdraw from the WTO. In addition, the Administration is expected to send legislation to the Congress to implement a free trade agreement with five Central American countries plus the Dominican Republic and a free trade agreement with Bahrain. Free trade agreement negotiations are under way with several other countries. The Congress may also consider legislation or otherwise debate issues regarding trade preferences for developing countries and also the effectiveness of U.S. trade remedy statutes.

Each issue or set of trade issues bears its own implications as Members of Congress weigh the merits and disadvantages. In most cases, the 109th Congress will be considering and debating each issue separately. However, the trade issues as a whole have implications for a wider debate on U.S. trade policy. As the 109th Congress addresses these issues, its decisions will have implications for key questions that help define U.S. trade policy in the long-term.

This report will generally cover the trade issues as they unfold. However, it will not track legislation per se. The report will be updated as events warrant.