What's Next for the U.S.-Mexico-Canada Trade Deal? The “Fast Track” Explained

Following the announcement by the Trump administration that the U.S. and Canadian governments agreed to enter into a new North American free trade deal with Mexico, attention turned to the “fast track” process used by Congress to approve such deals. Here’s a look at how Congress will consider the United States-Mexico-Canada Agreement (USMCA).

What is the “fast track”?

Trade promotion authority (TPA or fast track authority) allows the president to negotiate trade deals that have to be considered by Congress without amendment and receive votes on the floors of the House and Senate within a 90 day timeframe.

Once a fast track trade agreement is submitted to Congress by the president, an implementation bill is introduced in each chamber on its next day in session and referred to relevant committees. Committees then have 45 days to consider the bill and report it to the full House, after which it’s automatically discharged for a floor vote within the next 15 days.

(Because tariffs are taxes that generate revenue to the government, the House generally has to consider a trade implementation bill first to avoid a “blue slip” issue that violates the Constitution’s Origination Clause.)

After it’s passed by the House, Senate committees have 15 days to consider the trade bill and report it, otherwise it’d be discharged so that it could get a floor vote within the subsequent 15 days. Only a simple majority is required for such a bill’s passage on the Senate floor.

Fast track authority itself is time-limited and subject to renewal by Congress. It was last extended by the 114th Congress via the Bipartisan Congressional Trade Priorities and Accountability Act, when the Obama administration was pursuing the Trans-Pacific Partnership. It provided fast track authority through July 1, 2018 with a three-year extension available at the president’s request, which the Trump administration took advantage of to keep fast track trade authority available until July 1, 2021.

What happens next?

President Donald Trump indicated in a press conference Monday that he intends to sign the trade deal and submit it to Congress before the end of November, which would begin the 90 day fast track process.

It’s unclear whether the current Congress will look to quickly approve the trade deal during its post-election lame duck session. Given that lawmakers will likely be focused on funding the government beyond December 7th ― floor votes on the U.S.-Mexico-Canada Agreement may not occur until the 116th Congress is seated early next year.

Tell your reps whether you support the United States-Mexico-Canada Agreement and share your thoughts below!

— Eric Revell

(Photo Credit: iStock.com / ronniechua)