Billings Gazette - Montana Delegation Cold to Fast Tracking Trade for Obama

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By Tom Lutey

As President Barack Obama asks Congress to fast track two massive trade agreements, Montana's delegation is pumping its brakes.

Sens. Steve Daines and Jon Tester indicated Monday they're not yet ready to grant Obama Trade Promotion Authority, which would limit Congress to an up-or-down vote on treaties and prevent lawmakers from making amendments.

Rep. Ryan Zinke, R-Mont., said he won't grant Obama the authority because he doesn't like Obama's track record on negotiations.

The delegation's caution is sure to frustrate most of Montana's farm lobby, while pleasing unions and environmentalists.

"I support a robust economy where Montana ag and businesses are able to compete in a fair and open global market. However, we are talking about giving Obama -- a president who negotiates with rogue nations like Iran and Cuba -- exorbitant authority to do what he thinks is best," Zinke said. "Just look at the bad deal he's crafting with Iran. At this time, I don't have faith that Obama will negotiate in the best interest of Montana."

The president is seeking to fast track two trade agreements negotiated among partner nations with input from businesses active in foreign trade. First up is the Trans-Pacific Partnership, a 12-nation a deal among Pacific Rim countries that together comprise 40 percent the world's gross domestic product. Montana's wheat lobby has backed the TPP since trade negotiations started more than two years ago. There's a second trade agreement, the Transatlantic Trade and Investment Partnership, with European nations, but TPP is drawing the most attention in Montana.

Wheat was a $1.3 billion business in Montana last year, and most of the state's grain exports are to the Asian Pacific region, where grain competitors like Australia have been striking their own agreements. The Trans-Pacific Partnership is seen as leveling the playing field for grain by bringing all trade among partners under the same set of rules.

"There is a large potential to boost Montana ag trade if the negotiations can dismantle some of the barriers currently in place including tariffs, quotas and sanitary/phytosanitary measures," said Lola Raska, Montana Grain Growers Association executive vice president. "If the U.S. fails to conclude TPP, Montana farmers risk losing market share, especially in Asia, where China is aggressively trying to set up its own trade agreements."

Japan, one of Montana's biggest customers for wheat, has kept agriculture off the table in earlier trade agreements, Raska said. But as a TPP country, Japan has had to address agriculture trade and will need to answer for tariffs and quotas on United States grain.

Daines, a Republican, was one lawmaker the wheat lobby wanted in the yes column for Trade Promotion Authority. As a freshman in the House two years ago, Daines signed onto a letter by new lawmakers expressing support for Trade Promotion Authority, something they said every president since Franklin D. Roosevelt has had.

Monday, Daines was more cautious about fast-tracking Obama's deal.

"Steve will thoughtfully review the bill with key Montana stakeholders and ensure it protects Congress's constitutional role in trade policy," said Alee Lockman, Daines' communications director. "Trade plays an important role in Montana's economy and has been instrumental in allowing Montana producers and small businesses to grow their operations and create good-paying Montana jobs. In Montana alone, more than $900 million in bulk wheat and $130 million in beef is exported every year -- in turn, supporting family farm operations and thousands of Montana jobs. It's critical that we have smart policies in place that remove senseless barriers to free trade and help expand Montanans' access to new markets."

Tester, a Democrat and the Senate's only active farmer, indicated he's going to have to learn more about the fast-tracking proposal. On previous trade votes, Tester has been on the opposite side of the issue from Montana's wheat lobby because of the other considerations.

"When it comes to large international trade deals, Congress can't give up its seat at the table," Tester said. "The Trade Promotion Authority bill was just introduced days ago. As I review it, my support will hinge on whether this authority protects American jobs, middle-class families and small businesses."

Al Ekblad, Montana AFL-CIO executive, told The Gazette he was in Washington, D.C., last week meeting with Montana's delegation about fast tracking trade bills. There didn't seem like there was much support.

"The bottom line is, between the secrecy of Trade Promotion Authority and all of the unknowns of the Trans-Pacific Partnership, there's just so much there to hate that people in Congress can't get past it," Ekblad said. "There's a lot there to dislike."

Trade proponents argue that negotiations between nations carried out over several years cannot work, if Congress is allowed to amend the agreement afterward. If Congress doesn't like the agreement, they will have the power to reject all of it.

"Foreign countries won't negotiate trade agreements in good faith, or put their best offer on the table, if they know Congress has the ability to come in and make substantial changes," Raska said.

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