Updated June 21, 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
What is the current status of TPA? The Bipartisan
consideration. Fast-track Authority was renamed Trade
Congressional Trade Priorities and Accountability Act of
Promotion Authority in the Trade Act of 2002.
2015 (TPA) (P.L. 114-26) was signed by then-President
Obama on June 29, 2015, after a contentious legislative
TPA: Key Facts
debate. TPA is authorized through July 1, 2021.
First enacted in 1974
NAFTA. Legislation to implement a potential renegotiated
Renewed 4 times
North American Free Trade Agreement (NAFTA) may be
Used to consider 13 FTAs and two multilateral
eligible for consideration under TPA. On May 18, 2017,
GATT/WTO rounds
pursuant to TPA, the President sent Congress a 90-day
notification of his intent to begin talks with Canada and
TPA 2015: In force until July 1, 2021.
Mexico to renegotiate and modernize NAFTA, allowing
Congress has sought to achieve four major goals in TPA:
negotiations to begin in August 2017. After a year of
(1) define trade policy priorities by specifying negotiating
negotiations, USTR Lighthizer announced a preliminary
objectives; (2) ensure that the executive branch advances
agreement with Mexico on August 27, 2018. On August 31,
these objectives by requiring notification and consultation
President Trump gave Congress the required notice 90-day
with Congress; (3) define the terms, conditions, and
notice that he would sign a revised deal with Mexico. After
procedures under which the President may enter into trade
further negotiations, Canada joined the pact and it was
agreements and to determine which implementing bills may
concluded on September 30, 2018. The three nations signed
be approved under expedited authority; and (4) reaffirm the
the agreement on November 30, 2019. The Administration
constitutional authority of Congress over trade policy by
satisfied the requirement to provide Congress with a list of
placing limitations on the use of TPA.
changes to U.S. law required to implement the agreement
Key Elements of TPAs
on January 29, 2019. However, the government shutdown
delayed work on the International Trade Commission report
Trade Agreements Authority—First enacted by the Trade
on the economic effects of the agreement, which was
Act of 1974, TPA provides authority to the President to
delivered on April 19, 2019. The President gave the 30-day
enter into reciprocal trade agreements on reducing tariff and
advanced notice that he intends to submit implementing
nontariff barriers. However, Congress must introduce
legislation on May 30, 2019 and submitted the required
implementing legislation for the agreement to come into
draft Statement of Administrative Action (SAA).
effect. This legislation approves the agreement, authorizes
The proposed USMCA may be the first agreement
changes to existing law and/or changes “strictly necessary
or appropriate”
considered under the 2015 TPA. Under TPA procedures,
for its implementation. If enacted, the trade
the Trump Administration notified Congress on October 16,
agreement then can enter into force by presidential
2018 that it also plans to enter negotiations with the
proclamation.
European Union, Japan, and the United Kingdom for
Expedited Procedures—The implementing bill is subject
potential trade agreements.
to: (1) mandatory introduction; (2) automatic discharge
Why TPA? The President has the authority to negotiate
from the committees of jurisdiction; (3) time-limited floor
international agreements, including free trade agreements
debate; and (4) an “up or down,” simple majority vote.
(FTAs), but the Constitution gives the U.S. Congress sole
authority over the regulation of foreign commerce. For 145
Negotiating Objectives—Defined by Congress in TPA, the
years, Congress exercised this authority by directly setting
executive branch is expected to advance U.S. trade
tariff rates. This policy changed with the Reciprocal Trade
negotiating objectives if it expects to have the
Agreements Act of 1934 (RTAA). Congress delegated
implementing bill considered under expedited rules.
authority to the President to enter into reciprocal trade
Notification and Consultation—TPA authority and the
agreements that reduced tariffs within pre-approved levels,
expedited procedures are extended to the President, subject
which did not require further congressional action.
to certain notification requirements and consultations with
Congress before, during, and after negotiations.
https://crsreports.congress.gov
Trade Promotion Authority (TPA)
Limitations to the TPA—Congress adopted TPA on
trade by delegating it to the President. They also argue that
pragmatic grounds to prevent trade implementing bills from
because trade agreements have become increasingly
being delayed or obstructed by congressional procedures.
comprehensive and may go beyond what is typically
To assure retention of its constitutional authority, Congress
considered trade-related economic activity, implementing
has included: time limits on use of the TPA; the option for
legislation should be subject to normal legislative
Congress to disapprove an extension of those limits if the
procedures, including full debate and amendment.
President requests one; and two separate options for
Types of Agreements— Congress may seek to influence
Congress to deny expedited consideration of an
the size and scope of future trade agreements that may
implementing bill should it determine that there was
come before it under TPA. It may express a preference for
inadequate consultation or progress towards achieving
bilateral, regional, or multilateral negotiations, or it can
negotiating objectives. Each Chamber also retains the right
favor broad-based or sector specific agreements. Congress
to exercise its constitutional rulemaking authority to change
may also seek to advise the President on the selection of
TPA rules or override them.
countries with which the United States negotiates.
Hearings and “Mock Markups”— Congress has reviewed
Adherence to Negotiating Objectives— Congress may
trade agreements prior to the introduction of an
wish to examine whether future agreements considered
implementing bill. The committees of jurisdiction typically
under TPA advance U.S. trade negotiating objectives,
hold hearings on the proposed trade agreement. They often
potentially resulting in removal of expedited procedures.
hold informal “mock” markups on a draft implementing
bill, followed by a “mock conference.” Although TPA
Consultation and Notification— While some Members of
legislation does not explicitly define these steps, they
Congress have been satisfied with the level and depth of
provide for public review of the proposed agreement and
executive branch consultation with Congress on ongoing
allow the President to receive feedback and concerns from
trade negotiations, others have expressed concern with the
Congress, which are, nonetheless, nonbinding on the
perceived lack of transparency in the negotiations. TPA-
Administration.
2015 expands on Administration transparency and
Possible Issues for Congress
consultation obligations from those of previous iterations of
TPA.
Supporting Views. In general, supporters argue that TPA is
necessary to ensure that U.S.-negotiated trade agreements
Technical Considerations—Given several decades of
are not amended by Congress, which could undermine the
experience with TPA, some concerns have arisen over: (1)
credibility of U.S. trade negotiators and potentially unravel
the interpretation of “necessary or appropriate” language
a final agreement. The legislation also provides Congress
concerning implementing legislation; (2) possible deadlines
with a periodic opportunity to determine U.S. trade
for submitting an implementing bill once an agreement is
policy—and the Administration’s implementation of that
signed; and (3) the treatment of text changes in trade
policy—taking into account evolving issues and interests.
agreements after negotiations have closed. For a more
detailed look at TPA, see CRS Report R43491, Trade
Opposing Views. Opponents contend that with TPA,
Promotion Authority (TPA): Frequently Asked Questions,
Congress is relinquishing its constitutional authority over
by Ian F. Fergusson and Christopher M. Davis.
Figure 1. Congressional Requirements and Timeline Under Proposed TPA
Source. CRS.
Note. Dates reflect notification and consultation dates for USMCA.
IF10038
Ian F. Fergusson,
https://crsreports.congress.gov
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.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
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https://crsreports.congress.gov | IF10038 · VERSION 20 · UPDATED