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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 CruzOn The Money: Senate GOP faces post-Trump spending brawl | Senate confirms SEC chief Gensler to full five-year term | Left-leaning group raises concerns about SALT cap repeal Biden watching Derek Chauvin verdict from West Wing Cruz opposed to state lawmaker's bid to replace Wright in Congress MORE (Texas) and Marco RubioMarco Antonio RubioOn The Money: Senate GOP faces post-Trump spending brawl | Senate confirms SEC chief Gensler to full five-year term | Left-leaning group raises concerns about SALT cap repeal Senate GOP faces post-Trump spending brawl 15 Senate Republicans pledge to oppose lifting earmark ban MORE (Fla.) voted no, while Sen. Rand PaulRandal (Rand) Howard PaulOn The Money: Senate GOP faces post-Trump spending brawl | Senate confirms SEC chief Gensler to full five-year term | Left-leaning group raises concerns about SALT cap repeal Senate GOP faces post-Trump spending brawl 15 Senate Republicans pledge to oppose lifting earmark ban MORE (Ky.) voted yes. So did Sen. Lindsey GrahamLindsey Olin GrahamOvernight Energy: Biden reportedly will pledge to halve US emissions by 2030 | Ocasio-Cortez, Markey reintroduce Green New Deal resolution The Hill's Morning Report - Presented by Facebook - GOP draws line on taxes; nation braces for Chauvin verdict Senate GOP faces post-Trump spending brawl 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 BoehnerCantor: 'Level of craziness' in Washington has increased 'on both sides' Cheney on Trump going to GOP retreat in Florida: 'I haven't invited him' Republicans race for distance from 'America First Caucus' 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 SchumerChuck SchumerLawmakers react to guilty verdict in Chauvin murder trial: 'Our work is far from done' Overnight Health Care: Johnson & Johnson pause seen as 'responsible' in poll | Women turning out more than men for COVID-19 vaccines 'Real Housewives of the GOP' — Wannabe reality show narcissists commandeer the party 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 BrownGOP eyes new strategy to derail Biden infrastructure plan World passes 3 million coronavirus deaths Democratic senators call on Biden to support waiving vaccine patents 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.