Leading business groups, often at odds with President Barack Obama, are looking to give momentum to one of his top priorities before he leaves office: approval of a trade pact linking 12 nations along the Pacific Rim that make up 40 percent of the world economy.
The Business Roundtable, made up of chief executive officers from large U.S. companies, will endorse the Trans-Pacific Partnership (TPP) agreement on Tuesday. A trade group representing manufacturers did the same Monday.
Their influence could make supporters in Congress more eager to take the agreement up in an election year. Senate Majority Leader Mitch McConnell recently urged Obama to hold off on sending the agreement to Congress before the elections, warning that it didn’t have the votes.
John Engler, president of the Business Roundtable, and a former Republican governor of Michigan, said his organization is hoping Congress will approve the pact before it heads home for its August recess.
“The hope is to send the signal now that we’re getting pretty comfortable with the agreement and let’s get ready to give it serious consideration,” Engler told the Associated Press.
The trade agreement took more than five years to stitch together. Participating nations would reduce or eliminate thousands of tariffs that apply to foreign-made goods. The agreement also rolls back regulatory requirements, such as the need to establish an office in a particular country or partner with a local entity, in order to access their markets.
Several presidential candidates in both parties as well as members of Congress have panned the Trans-Pacific Partnership since agreement on the deal’s terms was announced in October. Donald Trump said it’s a “terrible deal.” Democrat Hillary Clinton said, “it didn’t meet my standards.”
That’s led to questions about whether Congress would pass the trade pact, even though lawmakers just last year passed legislation designed to speed TPP’s passage without the threat of amendments or filibuster. Support from business groups could ease some lawmakers’ concerns about the political environment.
The trade group representing manufacturers came out with its endorsement Monday. The group’s president and CEO, Jay Timmons, said that without the agreement, the United States would be ceding economic leadership to other global powers, letting them set the rules of economic engagement in the region.
The group has frequently clashed with the Obama administration over new environmental regulations and recently sued to stop stricter limits on smog-causing pollution.
Labor unions have come out overwhelmingly against the trade agreement, saying it will drive wages down, and it’s clear that for Obama to get a legacy-setting victory, he’ll have to rely on the GOP to push the legislation. Engler said he’s confident that the pact would end up getting more votes than the fast-track legislation that passed last year.
He said not all members of the Business Roundtable supported TPP, but there was a broad consensus.
“We cannot have a robust economy if the goal is to make things here and sell it to ourselves,” Engler said.
The White House said it welcomed the endorsements and that it showed that companies big and small feel the agreement is vital to their ability to compete globally.
“We look forward to working with Congress to ratify this agreement as soon as possible, so that these job creators can begin to take advantage of the 18,000 tax cuts within the agreement and support more higher-paying American jobs,” said White House spokeswoman Brandi Hoffine.