Senate approves trade enforcement measure, clearing way for fast-track

Senate approves trade enforcement measure, clearing way for fast-track

The Senate took an initial step toward picking up President Obama’s trade agenda on Thursday by approving a controversial customs bill that includes language cracking down on currency manipulation by trading partners.

The legislation was easily approved in a 78-20 vote. Under rules adopted for the vote, 60 votes were needed for the measure to pass.

GOP presidential hopefuls Sens. Ted CruzRafael (Ted) Edward CruzGOP deeply divided over Trump's social media crackdown Hillicon Valley: Twitter flags Trump tweet for 'glorifying violence' | Cruz calls for criminal investigation into Twitter over alleged sanctions violations | Senators urge FTC to investigate TikTok child privacy issues Cruz calls for criminal investigation into Twitter over alleged Iranian sanction violations MORE (Texas) and Marco RubioMarco Antonio RubioSchumer to GOP: Cancel 'conspiracy hearings' on origins of Russia probe Trump administration designates B of PPP funds for community lenders The Memo: Trump's Scarborough tweets unsettle his allies MORE (Fla.) voted no, while Sen. Rand PaulRandal (Rand) Howard PaulSecond senator tests positive for coronavirus antibodies Senate Democrats pump brakes on new stimulus checks Tim Kaine tests positive for COVID-19 antibodies MORE (Ky.) voted yes. So did Sen. Lindsey GrahamLindsey Olin GrahamSchumer to GOP: Cancel 'conspiracy hearings' on origins of Russia probe Graham announces hearing on police use of force after George Floyd killing In a new cold war with China, America may need to befriend Russia MORE (S.C.), who is considering a 2016 run.

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Democrats had demanded a vote on the bill in exchange for supporting a later vote that would allow the Senate to begin debate on fast-track trade legislation, a top legislative priority for Obama. That vote is scheduled for 2 p.m.

Supporters of the currency manipulation language frame the customs bill as a trade enforcement measure, and the vote gives some cover for Democrats who want to back fast-track.

It’s unlikely the customs bill will be picked up by the House. 

Speaker John BoehnerJohn Andrew BoehnerBottom line Pelosi, Trump slide further into the muck The partisan divide on crisis aid MORE (R-Ohio) on Thursday called efforts by Congress to legislate foreign currencies "laughable." 

The Obama administration also doesn’t support the measure. It warned ahead of the vote on Thursday that the currency provisions “raise highly problematic questions” about if the legislation would violate current international trade agreements, though it stopped short of a veto threat.

Despite White House concerns, Sen. Charles SchumerCharles (Chuck) Ellis SchumerFederal judges should be allowed to be Federalist Society members Warren condemns 'horrific' Trump tweet on Minneapolis protests, other senators chime in VA hospitals mostly drop hydroxychloroquine as coronavirus treatment MORE (D-N.Y.)  said he's “hopeful” the bill will make it to Obama's desk. 

The fast-track legislation would allow Obama to send a trade pact he is negotiating with Asian and Latin American countries to Congress for an up-or-down vote. Congress would not be able to amend the legislation under fast-track.

Unions and other liberal groups have launched a heavy lobbying and public relations campaign to defeat it. Earlier in the week, Senate Democrats voted against moving to the fast-track bill, demanding that the customs legislation be added to the package.

After a wave of headlines highlighting the fight between Obama and Democrats, a deal was reached on Wednesday in which the customs bill was given a separate vote.

Sen. Sherrod BrownSherrod Campbell BrownHillicon Valley: Twitter flags Trump tweet for 'glorifying violence' | Cruz calls for criminal investigation into Twitter over alleged sanctions violations | Senators urge FTC to investigate TikTok child privacy issues Democratic senators urge regulators to investigate Instacart over 'tip baiting' Senate Dems press DOJ over coronavirus safety precautions in juvenile detention centers MORE (D-Ohio), one of fast-track’s fiercest opponents, argued that in adopting the customs bill the Senate was acting as an “empathetic voice” on trade.

“The simple message: We cannot have trade promotion without trade enforcement,” he said. “We shouldn't be passing agreements while doing nothing, which the Senate tried to do on Tuesday.”

The bill increases the likelihood that penalties could be imposed on trading partners who engage in currency manipulation, which can lower the value of products and make them more competitive as exports.

Republicans were under pressure to oppose the customs bill.

The Club for Growth, a conservative outside group, said ahead of the vote that it would include the customs vote as part of its congressional scorecard. 

“Our largest objection to this bill is the currency language that was added during the committee markup conducted earlier this year,” the group said. “This new language would designate currency manipulation as a prohibited export subsidy, and thus, allow the government to take remedial action against the foreign country in question.”

Senators also voted 97-1 to pass a non-controversial package package of trade preferences for sub-Saharan Africa. Sen. James Lankford (R-Okla.) was the only no vote. 

This story was updated at 1:37 p.m.