Trade Adjustment Assistance Must Top Trade Agenda, Says Baucus

by Mike Godfrey, Tax-News.com, Washington

10 March 2008

Senate Finance Committee Chairman, Max Baucus has told US Trade Representative Susan Schwab that successful passage of Trade Adjustment Assistance (TAA) legislation will take precedence in the Committee over all pending free trade agreements.

Baucus commented at a trade hearing in the Committee on Thursday that robust and renewed TAA laws are the first step toward constructing a trade agenda that is good for the US economy and jobs.

“I would like to know where TAA fits in your priorities," he asked Schwab, adding that: "For me, and for millions of American workers, including those in my home state of Montana, it’s number one."

A forthright Baucus went on to tell the USTR that: "I will make this clear: get TAA done, and then we’ll talk."

Schwab responded by announcing that TAA is “extremely high in our priorities”, and stating that she intends to work with Baucus and the Committee on the issue.

Baucus also raised concerns about other outstanding trade issues, including the enforcement of the Canadian softwood lumber agreement, and specifically a recent arbitration decision that failed to hold Canada accountable for exceeding its allowable exports.

Also at issue was Korea’s continued failure to lift its ban on US beef consistent with World Animal Health Organization (OIE) guidelines.

Schwab replied that full enforcement of the lumber agreement is important for US stability and an adjustment mechanism on export taxes to address “surges” beyond allowed exports will be considered. She also revealed that new market access for American beef is a priority for the Bush Administration.

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