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 Just two days after Democrats defied Obama to block debate on a
bill to "fast-track" trade deals such as the Trans-Pacific
Partnership (TPP) trade deal through Congress, the Senate voted 65
to 33 to move ahead with consideration of the measure.
Strong support for the bill on this second go-round suggests
senators are unlikely to reject the bill, although heated debate is
still expected in the Senate over amendments and later in the House
of Representatives, where many Democrats staunchly oppose the TPP on
fears trade liberalization will cost U.S. jobs.
The about-face came after Democrats won a separate vote on a bill
punishing countries that manipulate their currencies to keep their
exports cheap, and followed a renewed round of personal lobbying by
Obama, who played down differences with left-wing Democrats.
Thirteen of 44 Democrats joined with Republicans, who voted in
lock-step to give backers of the legislation more than the 60 votes
needed to proceed in the 100-member Senate.
Under fast-track, the U.S. Congress can approve or reject trade
deals such as the TPP deal, but it cannot amend the contents of the
pact, a centerpiece of Obama's strategy to counter China's rising
economic and diplomatic clout in Asia.
 Obama's aggressive defense of fast-track has put him at odds with
the left wing of the Democratic Party, pitting him against Senator
Elizabeth Warren, a leading liberal voice.
The president thanked senators who backed the bill while vowing to
keep trying to convince others, and said his difference of opinion
with Warren "has never been personal." ID:nW1N0XD036]
"These are folks whose values are completely aligned with mine,"
Obama told reporters. "This just comes down to a policy difference
and analysis in terms of what we think is best for our people, our
constituents."
CURRENCY CLASH LOOMS
The Senate is expected to debate amendments to the fast-track bill
next week and Republican Senator Rob Portman, a former U.S. Trade
Representative, said he would seek to write sanctions against
currency manipulators into trade deals, a move backed by U.S.
automakers such as Ford Motor Co.
The White House, which has warned such sanctions would derail the
TPP, has so far side-stepped a clash by convincing Democrats to
isolate currency rules into a separate customs bill. That passed the
Senate with the support of all Democrats and more than half the
chamber's Republicans.
Portman said he would also seek to include those rules - allowing
import duties against currency cheats - into fast-track itself.
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Democratic Senator Charles Schumer said action on currency might be
needed as a sweetener for fast-track in the House, where many
Democrats say labor and environmental protections fall short and
some conservative Republicans oppose any more power for Obama.
"There's a broad feeling we have to do something against China,"
Schumer said. Many lawmakers blame China's trade gains on an
overly-weak Chinese currency.
Obama said he had spoken to Schumer and other lawmakers concerned
about currency manipulation on finding language that would not have
a "blow-back" effect on U.S. monetary policy.
House Speaker John Boehner, a Republican, said any attempt to
legislate currency levels would be “laughable,” signaling that
Republicans, who have a majority in the House, would push strongly
against currency rules.
Passage is already far from assured, with House Democratic leader
Nancy Pelosi voicing concerns of her own.
The fast-track bill would effectively give Obama and his successor
six years to negotiate additional trade deals that could not be
amended by Congress. “I would hope there could be some addressing of
the length of time,” Pelosi told reporters.
The TPP would create a free trade zone covering 40 percent of the
world economy. Trading partners have said they want to see the
legislation enacted before finalizing the pact - a task the
administration wants to complete this year.
The Senate also passed a bill extending duty-free access to U.S.
markets for African and other developing nations.
(Editing by Steve Orlofsky and Alan Crosby)
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