October 1, 2015 | By

Guest Commentary – Will Boehner's Departure Imperil the TPP?

US House Speaker John Boehner (R-OH) heads to a news conference to discuss his resignation after it was announced at the US Capitol in Washington, September 25, 2015. REUTERS/Jonathan Ernst

Trade ministers from the 12 participating nations are trying to finalize the Trans-Pacific Partnership (TPP) this week in Atlanta. As hard as those negotiations may be, any deal that emerges will have to make it through the US Congress. How have the odds changed with Speaker John Boehner’s surprise resignation announcement last week?

Supporters of TPP will find comfort looking at the voting records of the two candidates vying for the speakership—Kevin McCarthy (R-California) and Daniel Webster (R-Florida). The CATO Institute has a nifty database that tracks all the trade votes by members of Congress, and ranks them accordingly. McCarthy and Webster, like Boehner, both supported recent US free trade deals with Columbia, Korea, and Panama. And while McCarthy is a more vocal supporter of the TPP than Webster, both men ultimately voted in favor of passing Trade Promotion Authority (TPA) in June. Similarly, the three top contenders for House majority leader—Tom Price (R-Georgia), Steve Scalise (R-Louisiana), and Cathy McMorris Rodgers (R-Washington)— all have solid voting records in favor of free trade and voted to pass TPA.

This suggests there is a very good chance that whomever assumes Republican leadership in the post-Boehner House will continue to carry the TPP torch.

But if the case for TPP optimism can be found by looking at the new potential Republican leadership, the case for pessimism can be found by looking everywhere else.

Start with rank-and-file Republicans. Will Boehner’s resignation make them more or less likely to vote for the TPP? Consider that Boehner’s fate demonstrated to other House Republicans the perils of compromise, and the consequences of betraying the more conservative members of Congress. His resignation was an apparent victory for the ultra-conservative House Freedom Caucus, which will likely grow in influence after Boehner leaves. Given that the TPP is one of President Obama’s top policy priorities, how many House Republicans will be willing to hand him a victory in the thick of the 2016 campaign season?

Add to this the overwhelming Democratic opposition to the deal. Bernie Sanders, who represents an influential and growing voice from the left, declares the TPP is “anti-worker legislation” that “must be defeated.” Or look at the fiery populist rhetoric that is gaining traction within conservative circles that generally look favorably at free trade. Donald Trump calls the deal a “disaster” and an “attack on America’s business.” These grievances will be more and more difficult to ignore the closer we get to elections.

Finally, remember that TPP will need 218 votes to pass in the House. And recall that in the June 18 House vote to advance Trade Promotion Authority, there were few votes to spare (see Figure 1). This means that defections, whether Democrat or Republican, could be fatal for the deal.

Figure 1

Of course, if trade negotiations drift in Atlanta, there may be no deal for Congress to vote on. But even if an agreement is reached, the struggle over TPP will be far from over.  

About the Author

Andy Morimoto joined The Chicago Council in 2014 and currently serves as a research associate.

 

About

Phil Levy is senior fellow on the global economy at The Chicago Council on Global Affairs. Previously he was associate professor of business administration at the University of Virginia’s Darden School of Business. He was formerly a resident scholar at the American Enterprise Institute and taught at Columbia University’s School of International and Public Affairs. From 2003 to 2006, he served first as senior economist for trade for President Bush’s Council of Economic Advisers and then as a member of Secretary of State Rice’s Policy Planning Staff, covering international economic matters. Before working in government, he was a faculty member of Yale University’s Department of Economics for nine years and spent one of those as academic director of Yale’s Center for the Study of Globalization.

His academic writings have appeared in such outlets as The American Economic ReviewEconomic Journal, and theJournal of International Economics. He is a regular contributor to Foreign Policy magazine’s online Shadow Government section and writes on topics including trade policy, economic relations with China, and the European economic crisis. Dr. Levy has testified before the House Committee on Foreign Affairs, the Joint Economic Committee, the House Committee on Ways and Mean, and the US-China Economic and Security Review Commission. He received his PhD in Economics from Stanford University in 1994 and his AB in Economics from the University of Michigan in Ann Arbor in 1988.

Archive

Seals, Morality, and the WTO

I recently returned from a conference in which a coauthor and I presented some research on clubbing seals to death. The case raises issues of morality, extraterritoriality, and the dangers of a global trading system adrift.



The Cost-Benefit of Responding to Russia

After Russia’s move into Crimea and the danger that its military involvement could spread further, there is the question of how to deter a Russian invasion. 


Today’s Economic Report Card

This has been an eventful week in economic news. This morning, we got a first, early look at US economic growth in the fourth quarter of 2013—and it proved a pleasing sight.


Guest Commentary: Bali and Its Lessons

Uri Dadush, senior associate at the Carnegie Endowment for International Peace, offers his analysis of an important subsequent event–the limited global trade deal that was agreed in Bali in December in a guest post for World of Cents.




Global Trade enters Crunch Time

Those who enjoy sports will be familiar with the rhythm of a season. The global trade agenda is entering an analogous critical stage.



Congress and the Currency Manipulation Craze

A filibuster-busting 60 US senators last month sent a letter to Treasury Secretary Jacob Lew and US Trade Representative Michael Froman asking for new enforceable rules in trade agreements to attack currency manipulation.  A majority of House members signed a similar letter in June.


Reading the Jobs Report Card

This was to be the morning when we received the bill for last month’s government shutdown shenanigans.





TPP: United we stand, divided…

An analysis by the Asian Development Bank said that the TPP “risks collapsing and producing a series of bilateral deals if the 12 nations involved cannot reach agreement…”