Ways and Means Democrats Question Authority, Process for US-Japan Trade Deal

Although the U.S. trade representative found a way to avoid a congressional vote on a U.S.-Japan trade deal by limiting the size of the initial U.S. tariff reductions, Democrats on the Ways and Means Committee are questioning whether the deal is allowed under the fast-track law. A letter sent Nov. 26, led by Rep. Bill Pascrell, D-N.J., and signed by every Democrat on the committee except the chairman and Rep. John Lewis, D-Ga., did not explicitly say that Democrats believe the law is not being followed, but repeatedly asked under what authority the agreement was reached. Among the specific issues raised were rules of origin or marking rules and whether there would be changes. The letter also asked if there is such a provision, why wasn't it mentioned in the notification to Congress.

The Democrats wrote: “Please describe how the Administration has fulfilled the consultation requirement” under fast track. They also asked why the advisory committee report wasn't submitted until 60 days after the notification, when the law says it should come within 30 days. They also asked USTR to provide six other technical advisory committee reports, including from Customs Matters and Trade Facilitation, and from Automotive Equipment and Capital Goods. They asked what changes to U.S. law would be needed. They also asked how the agreement is consistent with the World Trade Organization's requirements that departures from Most Favored Nation tariffs only be granted through free trade agreements that affect “substantially all trade” between the countries. They asked if the WTO has been notified about the agreement, as well. They asked for answers as soon as possible, and no later than the day the U.S. and Japan enter the agreement. That is expected to happen Jan. 1, 2020.