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 Attention now turns to the House of Representatives, where
opposition is deeper to granting the president power to negotiate
trade deals that can be approved or rejected by Congress but not
amended.
Obama needs trade promotion authority (TPA) to complete the
Trans-Pacific Partnership (TPP) trade agreement this year, an
economic alliance that would encompass 40 percent of the world's
economies in countries ranging from Japan to Chile.
"Today’s bipartisan Senate vote is an important step toward ensuring
the United States can negotiate and enforce strong, high-standards
trade agreements," Obama said in a statement issued immediately
after the Senate passage.
If eventually enacted into law, the up to six-year TPA would extend
to any trade deals negotiated by Obama's successor, who would take
office in January 2017.
The Senate voted 62-37 for TPA, or fast-track as it is known in
Washington, following weeks of bitter debate and White House
lobbying.
Senate Finance Committee Chairman Orrin Hatch, the Republican who
shepherded the legislation through the Senate, said: "This is an
historic piece of legislation...likely the most important bill we'll
pass this year."
 Before the final vote, the Senate defeated, 51-48, an amendment that
the White House considered toxic, which would have imposed penalties
on countries found to be manipulating their currencies in order to
sell more goods abroad.
Opponents argued that the amendment would sink the TPP and would
violate international trade rules, while also making it harder for
central bankers to manage their economies.
Instead, the Senate approved milder currency manipulation language
that lacks enforcement tools. This version was supported by the
White House.
Democratic Senator Sherrod Brown, a leading opponent of fast-track,
said the lobbying against the tough currency manipulation amendment
was overwhelming.
"The president has been lobbying against it and Wall Street's been
lobbying against it and...the same people that pushed this trade
agreement are lobbying against it. It's a lot of power," Brown said.
Given the close vote on the amendment in the Senate, some supporters
of tough enforcement against currency manipulation vowed to continue
to fight for it.
Ford Motor Co Vice President Ziad Ojakli said in a statement that
the company will "work with lawmakers to address this critical issue
as TPA moves through the legislative process."
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Ford is among U.S. automakers that fear increased competition from
Japan.
Earlier on Friday, Japanese Economy Minister Akira Amari said
ministerial meetings on TPP are unlikely until Congress approves
fast-track authority for Obama.
The deep divisions within the U.S. Congress were on display on
Friday.
"We all know that by passing this legislation, we can show we're
serious about advancing new opportunities for bigger American
paychecks, better American jobs, and a stronger American economy,"
said Senate Majority Leader Mitch McConnell, a Republican.
Senate Democratic leader Harry Reid dismissed the emerging TPP as
just another trade deal, like past ones, that does little more than
help rich, multinational corporations while jeopardizing American
jobs.
"This trade bill is another example of how we have ignored in this
Congress working men and women in this country," Reid said.
As the action moves to the House, when it returns on June 1 from a
10-day Memorial Day holiday recess, labor unions and
environmentalists opposed to free-trade deals are expected to
ratchet up pressure on Democrats to vote against the legislation.
Meanwhile, House Speaker John Boehner, who backs fast track, will
also have to try to minimize opposition from fellow Republicans,
some of whom do not want to give Obama the additional powers.
(Additional reporting by Krista Hughes; Editing by Leslie Adler)
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