Updated February 7, 2019
Trade Promotion Authority (TPA)
Overview
In the 1960s, nontariff barriers became topics of trade
What is TPA? The Trade Promotion Authority (TPA),
negotiations. Congress found it necessary to alter the
previously known as “Fast-Track Authority,” is the time-
delegated RTAA tariff authority to require implementing
limited authority that Congress uses to set trade negotiating
legislation to authorize changes in U.S. law necessary to
objectives, to establish notification and consultation
meet these new obligations. Thus, pre-approval was no
requirements, and to consider implementing legislation for
longer an option. Given an implementing bill could face a
certain reciprocal trade agreements under expedited
potential amendment that could alter a long-negotiated
procedures, provided that they meet certain statutory
agreement, Congress adopted fast-track authority in the
requirements (see Fig. 1).
Trade Act of 1974 to provide expedited legislative
consideration. Fast-track Authority was renamed Trade
What is the current status of TPA? The Bipartisan
Promotion Authority in the Trade Act of 2002.
Congressional Trade Priorities and Accountability Act of
2015 (TPA) (P.L. 114-26) was signed by then-President
TPA: Key Facts
Obama on June 29, 2015, after a contentious legislative
debate. TPA is authorized through July 1, 2021.
First enacted in 1974
Renewed 4 times
NAFTA. Legislation to implement a potential renegotiated
Used to consider 13 FTAs and two multilateral
North American Free Trade Agreement (NAFTA) may be
GATT/WTO rounds
eligible for consideration under TPA. On May 18, 2017,
TPA 2015: In force until July 1, 2021.
pursuant to TPA, the President sent Congress a 90-day
notification of his intent to begin talks with Canada and
Congress has sought to achieve four major goals in TPA:
Mexico to renegotiate and modernize NAFTA, allowing
(1) define trade policy priorities by specifying negotiating
negotiations to begin in August 2017. After a year of
objectives; (2) ensure that the executive branch advances
negotiations, USTR Lighthizer announced a preliminary
these objectives by requiring notification and consultation
agreement with Mexico on August 27, 2018. On August 31,
with Congress; (3) define the terms, conditions, and
President Trump gave Congress the required notice 90-day
procedures under which the President may enter into trade
notice that he would sign a revised deal with Mexico. After
agreements and to determine which implementing bills may
further negotiations, Canada joined the pact and it was
be approved under expedited authority; and (4) reaffirm the
concluded on September 30, 2018. The three nations signed
constitutional authority of Congress over trade policy by
the agreement on November 30, 2019. The Administration
placing limitations on the use of TPA.
satisfied the requirement to provide Congress with a list of
changes to U.S. law required to implement the agreement
Key Elements of TPAs
on January 29, 2019. However, the government shutdown
Trade Agreements Authority—First enacted by the Trade
delayed work on the International Trade Commission report
Act of 1974, TPA provides authority to the President to
on the economic effects of the agreement, which is now
enter into reciprocal trade agreements on reducing tariff and
expected to be delivered to Congress by April 20, 2019.
nontariff barriers. However, Congress must introduce
implementing legislation for the agreement to come into
The proposed USMCA may be the first agreement
effect. This legislation approves the agreement, authorizes
considered under the 2015 TPA. Under TPA procedures,
changes to existing law and/or changes “strictly necessary
the Trump Administration notified Congress on October 16,
or appropriate” for its implementation. If enacted, the trade
2018 that it also plans to enter negotiations with the
agreement then can enter into force by presidential
European Union, Japan, and the United Kingdom for
proclamation.
potential trade agreements.
Expedited Procedures—The implementing bill is subject
Why TPA? The President has the authority to negotiate
to: (1) mandatory introduction; (2) automatic discharge
international agreements, including free trade agreements
from the committees of jurisdiction; (3) time-limited floor
(FTAs), but the Constitution gives the U.S. Congress sole
debate; and (4) an “up or down,” simple majority vote.
authority over the regulation of foreign commerce. For 145
years, Congress exercised this authority by directly setting
Negotiating Objectives—Defined by Congress in TPA, the
tariff rates. This policy changed with the Reciprocal Trade
executive branch is expected to advance U.S. trade
Agreements Act of 1934 (RTAA). Congress delegated
negotiating objectives if it expects to have the
authority to the President to enter into reciprocal trade
implementing bill considered under expedited rules.
agreements that reduced tariffs within pre-approved levels,
which did not require further congressional action.
Notification and Consultation—TPA authority and the
expedited procedures are extended to the President, subject
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Trade Promotion Authority (TPA)
to certain notification requirements and consultations with
Congress is relinquishing its constitutional authority over
Congress before, during, and after negotiations.
trade by delegating it to the President. They also argue that
Limitations to the TPA—Congress adopted TPA on
because trade agreements have become increasingly
pragmatic grounds to prevent trade implementing bills from
comprehensive and may go beyond what is typically
being delayed or obstructed by congressional procedures.
considered trade-related economic activity, implementing
To assure retention of its constitutional authority, Congress
legislation should be subject to normal legislative
has included: time limits on use of the TPA; the option for
procedures, including full debate and amendment.
Congress to disapprove an extension of those limits if the
Types of Agreements— Congress may seek to influence
President requests one; and two separate options for
the size and scope of future trade agreements that may
Congress to deny expedited consideration of an
come before it under TPA. It may express a preference for
implementing bill should it determine that there was
bilateral, regional, or multilateral negotiations, or it can
inadequate consultation or progress towards achieving
favor broad-based or sector specific agreements. Congress
negotiating objectives. Each Chamber also retains the right
may also seek to advise the President on the selection of
to exercise its constitutional rulemaking authority to change
countries with which the United States negotiates.
TPA rules or override them.
Adherence to Negotiating Objectives— Congress may
Hearings and “Mock Markups”— Congress has reviewed
wish to examine whether future agreements considered
trade agreements prior to the introduction of an
under TPA advance U.S. trade negotiating objectives,
implementing bill. The committees of jurisdiction typically
potentially resulting in removal of expedited procedures.
hold hearings on the proposed trade agreement. They often
Consultation and Notification— While some Members of
hold informal “mock” markups on a draft implementing
Congress have been satisfied with the level and depth of
bill, followed by a “mock conference.” Although TPA
executive branch consultation with Congress on ongoing
legislation does not explicitly define these steps, they
trade negotiations, others have expressed concern with the
provide for public review of the proposed agreement and
perceived lack of transparency in the negotiations. TPA-
allow the President to receive feedback and concerns from
2015 expands on Administration transparency and
Congress, which are, nonetheless, nonbinding on the
consultation obligations from those of previous iterations of
Administration.
TPA.
Possible Issues for Congress
Technical Considerations—Given several decades of
Supporting Views. In general, supporters argue that TPA is
experience with TPA, some concerns have arisen over: (1)
necessary to ensure that U.S.-negotiated trade agreements
the interpretation of “necessary or appropriate” language
are not amended by Congress, which could undermine the
concerning implementing legislation; (2) possible deadlines
credibility of U.S. trade negotiators and potentially unravel
for submitting an implementing bill once an agreement is
a final agreement. The legislation also provides Congress
signed; and (3) the treatment of text changes in trade
with a periodic opportunity to determine U.S. trade
agreements after negotiations have closed. For a more
policy—and the Administration’s implementation of that
detailed look at TPA, see CRS Report R43491, Trade
policy—taking into account evolving issues and interests.
Promotion Authority (TPA): Frequently Asked Questions,
by Ian F. Fergusson and Christopher M. Davis.
Opposing Views. Opponents contend that with TPA,
Figure 1. Congressional Requirements and Timeline Under Proposed TPA
Source.CRS.
IF10038
Ian F. Fergusson,
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Trade Promotion Authority (TPA)
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
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https://crsreports.congress.gov | IF10038 · VERSION 19 · UPDATED