Resolution on Trade Promotion Authority Exposed

The ‘’’[(KZ saved a PDF from ALEC.org) Resolution on Trade Promotion Authority]’’’ was approved by the ALEC Board of Directors in October 11, 2014.

CMD's Bill Summary

From its 1998 resolution in support of Fast Track Trade Negotiating Authority— which was used to push a permanent normal trading relationship with China through Congress in 2000 with little discussion or debate-- to more recent resolutions in support of the proposed Colombia, Panama and Korea Free Trade Agreements, ALEC has consistently urged its members to support a radical "free trade" agenda. This free trade agenda has cost America millions of jobs as factories closed and moved overseas in search of cheaper labor. Since 2001, an estimated 2.4 million American jobs have been lost to China alone. Now a diverse array of service sector jobs, from accounting and tax preparation to health care and credit card servicing, are being off-shored under these agreements. Such free trade agreements also allow public health, consumer, environmental and worker safety rules to be challenged as "barriers to trade" in trade tribunals that operate outside the constraints of U.S. law.

ALEC Bill Text

Summary

This resolution supports the extension of trade promotion authority (TPA) to the President of the United States, and something a version of which every US President since Franklin Delano Roosevelt has had, with the latest iteration lapsing in 2007. TPA facilitates the expansion of markets and the negotiation of free trade agreements which have been shown to increase America’s export market and to be an important tool for the US President to have.

Model Policy

WHEREAS, Americans are deeply concerned with job creation, economic stability, and expanding economic prosperity throughout the United States, and;

WHEREAS, international trade is a critical engine of growth for the U.S. economy, and;

WHEREAS, the U.S exported $2.3 trillion in goods and services accounting for 13.5 percent of our Gross Domestic Product in 2013, and;

WHEREAS, studies show that post World War II trade liberalization has raised annual incomes by $1 trillion, or $10,000 per American household, and export-related jobs pay 13 to 18 percent more than the average job, and;

WHEREAS, many of these jobs depend upon continued access to foreign markets and increased openness of those markets, and;

WHEREAS, U.S. goods and services exports supported an estimated 11.3 million jobs in 2013, including 25% of all manufacturing jobs, and;

WHEREAS, the U.S. has implemented free trade agreements with 17 new countries since 2001 as a result of the authority granted to the President by the Trade Act of 2002 and 19 out of the 20 FTAs we have were passed under TPA, and;

WHEREAS, current U.S. FTA partners account for only 10 percent of world GDP, but purchase 40 percent of U.S. exports, and;

WHEREAS, the U.S. ran trade surpluses with its FTA partners in 2012 and 2013 compared to trade deficits averaging nearly $500 billion dollars with other countries over the same years, and;

WHEREAS, American intellectual property supports 40 million US jobs and trade agreements are an indispensable tool to secure the intellectual property rights of America’s innovative industries overseas, and;

WHEREAS, without trade promotion authority the ability of the U.S. to continue to expand and open markets around the world and to establish and enforce fair and transparent international trading rules would be seriously constrained and U.S. businesses and farmers would lose market opportunities to foreign competitors, and;

WHEREAS, from 1974, every U.S. President has received trade promotion negotiating authority from Congress,

NOW THEREFORE LET IT BE FURTHER RESOLVED, that the State/Commonwealth of (Insert State) urges the U.S. Congress to enact the appropriate legislation to grant the President trade promotion negotiating authority; and

BE IT FURTHER RESOLVED, that copies of this Resolution be sent to each member of Congress.