Updated December 23, 2019
Trade Promotion Authority (TPA)
Overview
authority to the President to enter into reciprocal trade
What is TPA? The Trade Promotion Authority (TPA),
agreements that reduced tariffs within pre-approved levels,
previously known as “Fast-Track Authority,” is the time-
which did not require further congressional action.
limited authority that Congress uses to set trade negotiating
objectives, to establish notification and consultation
In the 1960s, nontariff barriers became topics of trade
requirements, and to consider implementing legislation for
negotiations. Congress found it necessary to alter the
certain reciprocal trade agreements under expedited
delegated RTAA tariff authority to require implementing
procedures, provided that they meet certain statutory
legislation to authorize changes in U.S. law necessary to
requirements (see Fig. 1).
meet these new obligations. Thus, pre-approval was no
What is the current status of TPA? The Bipartisan
longer an option. Given an implementing bill could face a
Congressional Trade Priorities and Accountability Act of
potential amendment that could alter a long-negotiated
2015 (TPA) (P.L. 114-26) was signed by then-President
agreement, Congress adopted fast-track authority in the
Obama on June 29, 2015, after a contentious legislative
Trade Act of 1974 to provide expedited legislative
debate. TPA is authorized through July 1, 2021.
consideration. Fast-track Authority was renamed Trade
Promotion Authority in the Trade Act of 2002.
USMCA. TPA is being used for the consideration of the
TPA: Key Facts
United States-Mexico-Canada Agreement (USMCA). The
following chart list the key notification and consultation
First enacted in 1974
requirements.
Renewed 4 times
TPA: Notification and Consultation Dates and Deadlines
Used to consider 14 FTAs and two multilateral
for USMCA
GATT/WTO rounds
TPA 2015: In force until July 1, 2021.
May 18, 2017: President sends 90-day notification of intent
to begin negotiations with Canada and Mexico.
Congress has sought to achieve four major goals in TPA:
(1) define trade policy priorities by specifying negotiating
August 30, 2018: Notification to Congress of intent to sign
objectives; (2) ensure that the executive branch advances
agreement with Mexico.
these objectives by requiring notification and consultation
September 30, 2018: USMCA draft text released. Advisory
with Congress; (3) define the terms, conditions, and
committee reports released.
procedures under which the President may enter into trade
November 30, 2018: Agreement is signed.
agreements and to determine which implementing bills may
be approved under expedited authority; and (4) reaffirm the
January 29, 2019: List of required changes to U.S. law
delivered to Congress.
constitutional authority of Congress over trade policy by
placing limitations on the use of TPA.
April 18, 2019: International Trade Commission (ITC)
report released (extended due to government shutdown).
Key Elements of TPAs
May 30, 2019: Draft Statement of Administration Action
Trade Agreements Authority—First enacted by the Trade
(SAA) and text of the agreement submitted to Congress.
Act of 1974, TPA provides authority to the President to
December 13 and 16, 2019: Implementing legislation
enter into reciprocal trade agreements on reducing tariff and
introduced in House and Senate.
nontariff barriers. However, Congress must introduce
implementing legislation for the agreement to come into
90 legislative day deadline for Congress to vote.
effect. This legislation approves the agreement, authorizes
changes to existing law and/or changes “strictly necessary
Under TPA procedures, the Trump Administration notified
or appropriate” for its implementation. If enacted, the trade
Congress on October 16, 2018 that it also plans to enter
agreement then can enter into force by presidential
negotiations with the European Union, Japan, and the
proclamation.
United Kingdom for potential trade agreements. In October
Expedited Procedures—The implementing bill is subject
2019, the United States and Japan signed two bilateral
to: (1) mandatory introduction; (2) automatic discharge
agreement that are not being considered under TPA.
from the committees of jurisdiction; (3) time-limited floor
Why TPA? The President has the authority to negotiate
debate; and (4) an “up or down,” simple majority vote.
international agreements, including free trade agreements
(FTAs), but the Constitution gives the U.S. Congress sole
Negotiating Objectives—Defined by Congress in TPA, the
authority over the regulation of foreign commerce. For 145
executive branch is expected to advance U.S. trade
years, Congress exercised this authority by directly setting
negotiating objectives if it expects to have the
tariff rates. This policy changed with the Reciprocal Trade
implementing bill considered under expedited rules.
Agreements Act of 1934 (RTAA). Congress delegated
https://crsreports.congress.gov
Trade Promotion Authority (TPA)
Notification and Consultation—TPA authority and the
Opposing Views. Opponents contend that with TPA,
expedited procedures are extended to the President, subject
Congress is relinquishing its constitutional authority over
to certain notification requirements and consultations with
trade by delegating it to the President. They also argue that
Congress before, during, and after negotiations.
because trade agreements have become increasingly
Limitations to the TPA—Congress adopted TPA on
comprehensive and may go beyond what is typically
pragmatic grounds to prevent trade implementing bills from
considered trade-related economic activity, implementing
being delayed or obstructed by congressional procedures.
legislation should be subject to normal legislative
To assure retention of its constitutional authority, Congress
procedures, including full debate and amendment.
has included: time limits on use of the TPA; the option for
Types of Agreements— Congress may seek to influence
Congress to disapprove an extension of those limits if the
the size and scope of future trade agreements that may
President requests one; and two separate options for
come before it under TPA. It may express a preference for
Congress to deny expedited consideration of an
bilateral, regional, or multilateral negotiations, or it can
implementing bill should it determine that there was
favor broad-based or sector specific agreements. It also may
inadequate consultation or progress towards achieving
scrutinize the presidential use of tariff proclamation
negotiating objectives. Each Chamber also retains the right
authority as well as the negotiation of trade-related
to exercise its constitutional rulemaking authority to change
agreements that do not require changes to U.S. law.
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
Consultation and Notification— USMCA has undergone
hold hearings on the proposed trade agreement. They often
substantive revisions since the original release of the
hold informal “mock” markups on a draft implementing
bill, followed by a “mock conference.” Although TPA
agreement text and SAA. Some Members of Congress
believe that such changes require the resubmission of the
legislation does not explicitly define these steps, they
new text with the applicable notification period.
provide for public review of the proposed agreement and
allow the President to receive feedback and concerns from
Technical Considerations—Given several decades of
Congress, which are, nonetheless, nonbinding on the
experience with TPA, some concerns have arisen over: (1)
Administration.
the interpretation of “strictly necessary or appropriate”
Possible Issues for Congress
language concerning implementing legislation; (2) possible
Supporting Views. In general, supporters argue that TPA is
deadlines for submitting an implementing bill once an
necessary to ensure that U.S.-negotiated trade agreements
agreement is signed; and (3) the treatment of text changes
are not amended by Congress, which could undermine the
in trade agreements after negotiations have been signed. For
credibility of U.S. trade negotiators and potentially unravel
a more detailed look at TPA, see CRS Report R43491,
a final agreement. TPA legislation also provides Congress
Trade Promotion Authority (TPA): Frequently Asked
with a periodic opportunity to determine U.S. trade
Questions, by Ian F. Fergusson and Christopher M. Davis.
policy—and the Administration’s implementation of that
policy—taking into account evolving issues and interests.
Figure 1. Congressional Requirements and Timeline Under Proposed TPA
Source: CRS.
Note: Dates reflect notification and consultation events in USMCA.
https://crsreports.congress.gov
Trade Promotion Authority (TPA)
IF10038
Ian F. Fergusson, Specialist in International Trade and
Finance
Disclaimer
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https://crsreports.congress.gov | IF10038 · VERSION 27 · UPDATED