Powerful Democrats in Senate Say IPEF Should Drop Trade Pillar

As the negotiators push to get agreement on the Indo-Pacific Economic Framework in San Francisco, two Senate committee chairmen are arguing that the trade pillar should be jettisoned, or at least delayed until the administration can build support in Congress.

The trade pillar of IPEF is not aiming to lower tariffs on either side, but rather focuses on trade facilitation, digital trade rules, agricultural standards and other non-tariff barriers.

"As the administration works to finalize the Indo-Pacific Economic Framework, they should not include the trade pillar," Banking Committee Chairman Sherrod Brown said. Brown, a Democrat from Ohio, is up for re-election next year. Brown has been a longtime critic of free trade agreements, though he voted for the NAFTA replacement after the rapid response labor mechanism was included. He and Senate Finance Committee Chairman Ron Wyden, D-Ore., created that mechanism.

Brown added, "Any trade deal that does not include enforceable labor standards is unacceptable. That goes against everything I stand for -- and everything we successfully fought against when we led the opposition to the Trans-Pacific Partnership."

Wyden told International Trade Today, through a spokesperson: "Senators have warned [the U.S. trade representative] for months that the United States cannot enter into a trade agreement without leveling the playing field for American workers, tackling pressing environmental challenges and bulldozing trade barriers for small businesses and creators. Ambassador [Katherine] Tai must come home and work with Congress to find an agreement that will support American jobs and garner Congressional support."

After Brown issued that statement Nov. 9, National Security Council spokesperson John Kirby told a Politico reporter who asked about Brown's and Wyden's criticisms: "What I would tell you is that we're working with our partners to make substantial progress on IPEF for this [Asia-Pacific Economic Cooperation] Economic Leaders' Week this month.

"And as I previously noted, we also expect discussions on some IPEF elements will not be completed on this aggressive timeline and thus we expect it to fully be able to continue past November.

"On the Hill ... we’re going to stay in close coordination with members of Congress and their staff members as well as other stakeholders. But I just don't have any broad announcement on IPEF beyond that."