Showing posts with label #international business. Show all posts
Showing posts with label #international business. Show all posts

Tuesday, July 28, 2015

The Trade Promotion Authority - Pros and Cons

(authored by Hayoon Jung, my summer law clerk)



On May 22, 2015 the U.S. Congress gave President Obama expanded trade negotiation powers by passing the Trade Promotion Authority (TPA, 19 U.S.C.A. § 3801-3813). The TPA shortens the time a trade agreement implementing bill stays in Congress by restricting Congressional power to amend the submitted bill. TPA requires the President to hear Congress’ opinion in the course of trade negotiations to assure the trade agreement obtains its goal.  

To maintain its Constitutional power in U.S. commerce, Congress requires the President to hear its opinion in the course of trade negotiations and delineated trade objectives, such as expanded market opportunities. Moreover, TPA restricts the implementing bill to consist only of provisions that approve the trade agreement and administrative action necessary to implement it. Also, the bill should include “only such provisions as are strictly necessary or appropriate” (italics added). Compared to the 2002 TPA, which did not contain such italicized words, this more stringent standard represents a Congressional intent to interpret the law narrowly.

The Process

In this expedited process, an implementing bill submitted by the President is automatically introduced in both houses concurrently, unlike in the regular legislative process. Then, the appropriate committee of each Chamber examines the bill. The debate is limited to 20 hours, whereas there is no limit in the regular process. Then the bill goes to the floor in each Chamber for the members to vote. Each Chamber has to either approve it fully or deny the bill without amendments. Timely floor consideration, limited debate time, and a prohibition on amendments are the three elements that allow the expedited process.

Pros and Cons

The advocates say TPA is neither giving the President a new power, nor depriving the Congress of its legislative power, because Congress still participates in drafting and implementing a bill and reserves the right to deny the bill as in the regular process (https://fas.org/sgp/crs/misc/R43491.pdf)

Furthermore, the TPA will promote the U.S. economy by inducing more trade agreements. The reduced cost of re-negotiation will enable other countries to more easily enter into, and finalize trade agreements with the U.S. New agreements will lower trade barriers, thus increasing the volume of international commerce, in turn entailing a higher GDP, spurring job growth.

In contrast, opponents of the TPA express concerns about the seemingly diminished Congressional power in legislating laws (http://dailycaller.com/2015/04/08/uaw-voices-its-opposition-to-trade-promotion-authority). Likewise, they think TPA is unnecessary because both the House and the Senate are aware of the necessity of trade agreements and its reciprocity (http://object.cato.org/sites/cato.org/files/pubs/pdf/ftb56.pdf They also argue that the individual industries and the workers will be the ones bearing the cost of the lower trade barriers, because they are forced cut the cost to remain competitive in the market (AFL-CIO, http://dailycaller.com/2015/04/08/uaw-voices-its-opposition-to-trade-promotion-authority).

What do you think? Let us know by sharing your comments below!

Monday, March 9, 2015

Harmful Shifts in the US Economy Without a New Beginning for AGOA?

Still think the economy is sluggish?  


(photo courtesy of U.S. CIA)

The gridlock in Congress isn’t helping and with their delays in reauthorizing trade agreements like the African Growth and Opportunity Act (AGOA), U.S. companies whose existence rely upon duty-free African imports – whether in fashion, retail, beauty, foodstuffs, or otherwise - are going to start laying off people as the uncertainty with respect to AGOA renewal mounts.

Here’s a snapshot of reasons, recommendations, and how you can support AGOA renewal in 2015.

AGOA renewal is important not only for keeping existing companies in business but also for the expansion of other US companies who find markets within African economies.

A rise in African exports equals increased spending power amongst African consumers, and with President Obama’s export promotion initiative in place, this means that US exports have a greater chance for success when expanding into these foreign markets. 

A growing African labor force could also lead to more stable economies and increase good governance.  With greater economic development and stability, there will be less of an incentive to join radical groups known to be destructive and that pose a threat to the world at large, as there will instead be a viable alternative to have a life with meaning and, hence, a vested interest in creating a common good for society as a whole.

Now is the time to make your voice heard if you want Congress to vote for the reauthorization of the AGOA trade agreement.  Send letters to all of the members of the House Ways and Means Committee and the Senate Finance Committee, calling for:

1) The expeditious passage of AGOA
2) Renewal for a term of 15 years
3) Such passage to include all current member states

With this, provide a statement highlighting how economic development and stabilization function as a mechanism to combat terrorism.

The AGOA reauthorization is currently being drafted by Congress, so now is the time to get your letters in and make your voice heard if you want to keep US businesses in business and open up foreign markets to US exports.  

Questions/comments?  Post below or email me at clark.deanna@gmail.com

Keep up with me at www.fashioncompliance.com or:
On Twitter @fashcompliance



Wednesday, February 11, 2015

Wednesday, February 4, 2015

Supporting AGOA Renewal & Trade With Africa


Whether you like it for US business or for Sub-Saharan African ones, the question that supporters are trying to explain to Washington right now is: 



I’ve been getting a lot of emails lately regarding support for the renewal of the African Growth and Opportunity Act (AGOA) including a call to action to pledge support for the Act’s re-authorization which is set to expire in September 2015. 

I even found in my Inbox a wonderful piece by Steve Lamar, Executive Vice-President of the American Apparel & Footwear Association (AAFA), which mentioned how the dysfunction in Washington DC (i.e., our wonderful government) is hurting U.S. businesses engaged in international trade with Africa because the delay in AGOA renewal restricts the ability to make viable business projections and decisions about sourcing.  Steve’s op-ed piece can be found here

Lastly, today I found another article written by the folks over at McKinsey & Company chiming in on the growth opportunity in Africa.  You can access their article here.

So with all of the supporters, it begs the question – What is Washington waiting for?

For more on this subject, check out these articles and others I’ve written as well to learn more about the AGOA trade agreement and it’s renewal.

Questions/comments?  Post below or email me at clark.deanna@gmail.com
Keep up with me at www.fashioncompliance.com or:
On Twitter @fashcompliance

Monday, December 22, 2014

Registration Open for 2015 Africa Trade Conference


Next Fall will be the Trade Winds Business Development Conference in South Africa from Sept. 16 -18, 2015
 

Leading up to this event, there will be an eight-part webinar series to prepare participating U.S. companies for a more successful experience during the upcoming Trade Winds - Africa Trade Mission.

As explained on the U.S. Commercial Services website, U.S. trade to and from Africa has tripled over the past decade and U.S. exports to Sub-Saharan Africa now top $21 billion.  Africa is home to 7 out of the 10 fastest-growing markets in the world.

The International Monetary Fund projects Sub-Saharan Africa to grow between 5 and 6 percent each year over the next two years.

Whether your company is new to this region or is looking to tap into new markets, this is the ideal launching point for expansion throughout the region.  The conference portion will be hosted in South Africa, during which time you can:

·  Participate in a focused business development conference, highlighting opportunities and challenges in this extremely dynamic region

·  Attend high-visibility business networking events with leading industry and government officials

·  Meet one-on-one with top African business experts from the U.S. Embassies and Consulates from the region for the latest trade leads and market entry strategies 

·  Find a partner or customer through screened business-to-business meetings in Angola, Ghana, Mozambique, South Africa, Ethiopia, Kenya, Nigeria, and Tanzania

In addition, you can increase your benefit by adding one or more additional participating countries to your itinerary.  With increasing efforts by ACTIF and other textile partners, this is a conference the fashion industry may well want to attend.  To learn more about it, click on the links above.

Questions/comments?  Post below or email me at clark.deanna@gmail.com
Keep up with me at www.fashioncompliance.com or:
On Twitter @fashcompliance