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When chairmen throw chairs
This week the Senate passed legislation that repeals the export tax regime that the World Trade Organization (WTO) has ruled to be an illegal export subsidy. In March, the European Union (EU) imposed a series of retaliatory sanctions against certain U.S. products as a result of the WTO's finding. Agricultural commodities are at the top of the EU's $4 billion retaliation list.
The Senate-passed JOBS Act replaces the current export tax regime with a more favorable and trade-legal one. A week ago, the possibility that the JOBS Act would pass the Senate was uncertain at best. However, as a result of political pressure from outside the Beltway and a series of compromises within it, a majority of Senators were able to support the bill's final passage. While this sends a strong signal to our trading partners that we are serious about living up to our trade commitments, agriculture and the rest of the U.S. industries affected by the sanctions are not out of the woods yet.
The House, usually the quicker of the two bodies of Congress in considering legislation in a timely manner, remains wrapped around their own axle on this issue. The chairman of the committee of jurisdiction in the House has been unsuccessful in several attempts to move legislation from his committee that the full House could consider. Rep. Bill Thomas, chairman of the Ways and Means Committee, has run into roadblock after roadblock. Among the roadblocks is competing legislation offered by members of his committee.
Though timing, unrelated legislation requiring the House's attention, and other issues of the day have frustrated Chairman Thomas' attempts, the apparent largest roadblock in Chairman Thomas' path appears to be his own pride. Despite the fact that alternate legislation is closer to that passed by the Senate, which makes it much it easier to complete a conference agreement between the House and Senate, the chairman has insisted upon moving the legislation he has authored.
As each passing month brings increasing pressure to repeal and replace the export tax regime, so to will the pressure increase upon the House to act. When the House does, a quick conference with the Senate is equally uncertain, especially if its legislation differs dramatically from that of the Senate. The two lead conferees, Senator Grassley and Representative Thomas are notorious for their tendency to strongly disagree on legislation--Washington-speak for the fact that the two men don't really like each other. Last year's Medicare prescription drug conference between the House and Senate became so acrimonious that President Bush had to intervene to get the two Republican Chairmen to even speak to each other.
At the end of the day legislation will be passed that will enable the EU's sanctions to be lifted. The road to that accomplishment will be lit with the fireworks between the lead negotiators from the House and Senate. Congress is not always as dull and dry as it sometimes appears.
Date: 5/12/04
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