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Updated December 14, 2020
Trade Promotion Authority (TPA)
Trade Promotion Authority (TPA) is a time-limited
known as TPA in the Trade Act of 1974 to provide
authority that Congress uses to establish trade negotiating
expedited legislative consideration. Congress has sought to
objectives, notification, and consultation requirements, and
achieve four major goals in TPA:
procedures to consider implementing legislation for certain
reciprocal trade agreements provided that they meet certain
define trade agreement policy priorities by specifying
statutory requirements (see Figure 1).
U.S. negotiating objectives;
TPA is authorized through July 1, 2021. TPA was
ensure that the executive branch advances these
reauthorized in 2015 by the Bipartisan Congressional Trade
objectives through various notification and consultation
Priorities and Accountability Act of 2015 (TPA) (P.L. 114-
requirements with Congress;
26), which was signed by then-President Obama on June
29, 2015, after a contentious legislative debate. For the first
define the terms, conditions, and procedures under
20 years of TPA’s existence (1974-1994), it continually
which the President may enter into trade agreements and
was in force. However, it lapsed from 1994-2002 and from
to determine which implementing bills may be approved
2007-2015.
under expedited authority; and
reaffirm the constitutional authority of Congress over
TPA: Key Facts
trade policy by placing limitations on the use of TPA.
President tariff reduction authority first enacted in 1934
Key Elements of TPA
TPA First enacted in 1974
Trade Agreements Authority—TPA provides authority to
Renewed 4 times
the President to enter into reciprocal trade agreements on
Used to consider 15 FTAs and 2 multilateral GATT/WTO
reducing tariff and nontariff barriers. However, Congress
rounds
must introduce implementing legislation for the agreement
TPA 2015: In force until July 1, 2021
to come into effect. This legislation approves the
USMCA. TPA was used to implement and approve the
agreement, and authorizes changes to existing law and/or
changes “
United States-Mexico-Canada Agreement (USMCA). In
strictly necessary or appropriate” for its
implementation. If enacted, the trade agreement then can
addition, the Trump Administration notified Congress in
enter into force by presidential proclamation.
2018 that it planned to enter negotiations with the European
Union, Japan, and the United Kingdom for potential trade
Proclamation Authority. Maintains RTAA authority for
agreements under TPA procedures. In October 2019, the
United States and Japan signed two bilateral agreements
the President to negotiate tariff-only agreements within
certain parameters without congressional approval.
that were not formally considered by Congress under TPA’s
expedited procedures.
Expedited Procedures—The implementing bill is subject
Rationale and Background
to (1) mandatory introduction; (2) automatic discharge from
the committees of jurisdiction; (3) time-limited floor
The President has the authority to negotiate international
debate; and (4) an “up or down,” simple majority vote.
agreements, including free trade agreements (FTAs), but
the Constitution gives the U.S. Congress sole authority to
Negotiating Objectives—An eligible agreement may be
lay tariffs and regulate foreign commerce. For 145 years,
entered into only if it “makes progress” in achieving U.S.
Congress exercised this authority by directly setting tariff
trade negotiating objectives as defined under TPA.
rates. This policy changed with the Reciprocal Trade
Agreements Act of 1934 (RTAA). Congress delegated
Notification, Consultation, and Reporting—TPA and the
authority to the President to enter into reciprocal trade
expedited procedures are extended to the President subject
agreements that reduced tariffs within preapproved levels,
to certain notification, reporting, and consultation with
which did not require further congressional action.
Congress before, during, and after negotiations.
In the 1960s, nontariff barriers became a topic of trade
Limitations to TPA—Congress adopted TPA on pragmatic
negotiations. Congress found it necessary to alter the
grounds to prevent trade implementing bills from being
delegated RTAA tariff authority to require implementing
delayed or obstructed by congressional procedures. To
legislation to authorize changes in U.S. law necessary to
assure retention of its constitutional authority, Congress has
meet these new obligations. Given an implementing bill
included time limits on use of the TPA; the option for
could face a potential amendment that could alter a long-
Congress to disapprove an extension of those limits; and
negotiated agreement, Congress adopted what is now
two separate options for Congress to deny expedited
https://crsreports.congress.gov
Trade Promotion Authority (TPA)
consideration of an implementing bill for inadequate
Issues for Congress
consultation or progress towards achieving negotiating
TPA expires on July 1, 2021, and the 117th Congress may
objectives. Each Chamber retains the right to exercise its
consider its renewal. Presidents generally seek TPA
constitutional rulemaking authority to change TPA rules.
renewal at some point in their terms. Congress may
consider the continuing rationale for TPA as well as the
Hearings and “Mock Markups”—Congress has reviewed
following issues.
trade agreements prior to the introduction of an
implementing bill. The committees of jurisdiction typically
Types of Agreements—Congress may seek to influence
hold hearings on the proposed trade agreement. They often
the size and scope of future trade agreements under TPA. It
hold informal “mock” markups on a draft implementing
also may scrutinize the presidential use of tariff
bill. Mock markups provide for public review of the
proclamation authority or the negotiation of trade-related
proposed agreement and allow the President to receive
agreements that do not require changes to U.S. law.
feedback and concerns from Congress, which are,
nonetheless, nonbinding on the Administration.
Negotiating Objectives—Congress may examine whether
Stakeholder Views
and how to revise U.S. trade negotiating objectives and
priorities, based on the language of recent trade agreements
Supporters of TPA argue that it is necessary to ensure that
like USMCA and/or on issues such as digital trade barriers,
U.S.-negotiated trade agreements are not amended by
state-led subsidies, labor and environmental issues,
Congress, which could undermine the credibility of U.S.
including climate change.
trade negotiators and potentially unravel a final agreement.
Yet, Congress has directed the Administration to
Consultation and Notification—USMCA underwent
renegotiate certain chapters in USMCA and previous
substantive revisions after the original release of its text.
bilateral agreements prior to consideration. Given the
The new text was not resubmitted to Congress prior to
ability of each chamber to make—and change—its rules at
introduction and no mock markup was held. Given this
any time, however, it is not clear what could be done to
experience, Congress may seek to clarify the circumstances
guarantee an agreement’s consideration, but, to date, every
that would require resubmission of a new text with the
agreement submitted under TPA has ultimately been
applicable notification period. Congress may also debate
approved by Congress.
institutionalizing the “mock markup” practice in TPA.
Some observers argue that trade agreements have become
Implementing Legislation—Over the years, concerns have
increasingly comprehensive, going beyond what typically is
arisen over the interpretation of “strictly necessary or
considered trade-related economic activity. They argue
appropriate” to describe the scope of implementing
implementing legislation should be subject to normal
legislation; the imposition of possible deadlines for
legislative procedures, including full debate and
submitting an implementing bill once an agreement is
amendment. However, U.S. negotiators usually seek to
signed, or whether implementing legislation may be
avoid substantive U.S. policy changes, rather to change
introduced in a subsequent Congress. For more information,
policy in partners to match U.S. standards. Yet, some argue
see CRS Report R43491, Trade Promotion Authority
that enshrining current U.S. policy in trade agreements may
(TPA): Frequently Asked Questions, by Ian F. Fergusson
make those policies harder to change in the future.
and Christopher M. Davis.
Figure 1. Congressional Requirements and Timeline Under Current TPA
Source: CRS.
IF10038
Ian F. Fergusson, Specialist in International Trade and
Finance
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.
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https://crsreports.congress.gov | IF10038 · VERSION 29 · UPDATED