We are in the home-stretch to the August recess.
Traditionally, this IS when all the trade activity happens…

Oman FTA:
Was PASSED by the House 221-205.
The Chamber played a central role in “working” this issue on the Hill.
In addition to our Key Vote letter, we played a role in the formal “whip” effort for both Republicans and Democrats.
The number of Democrats who supported the bill was 22 (more than DR-CAFTA).
The GOP lost 28 to “fear of trade” arguments.
While the bill passed with success, getting to that point was not “easy” and now the GOP House Leadership is a bit “gun shy” to move forward on another trade bill without stronger guarantees of confirmed “yes” votes on the Democratic site.
Yes.
The Senate already passed the Oman bill too.
But now it has to pass the “HR” version of the bill.
So expect that vote in the next two weeks (Likely UC, or a Roll Call vote similar to the 60-34 vote held a few weeks ago.)

Senate Finance/Post-Oman:
You may recall that a number of Democrats on the Senate Finance Committee complained about a “lack of consultation” regarding an amendment on forced labor/human trafficking that was adopted by the Committee, but dropped by the Administration when the legislation was presented for formal consideration.
The Committee met in Executive Session with USTR Schwab to discuss the issue.
I’m told that the conversation was heated and at the end, four members shot off a letter to USTR indicating that they felt “misled” by the Administration in its response regarding forced labor/human trafficking in Oman. The purpose of this Session was to get Senators back to a “good place” with the Administration.
Clearly, that was not fully achieved, and we will have to wait and see what kind of fall out this may have on the upcoming markup on Peru and Vietnam.
The Senators signing the letter were Wyden, Rockefeller, Bingaman and Conrad.

Peru TPA:
I am very pleased to report movement!
The House Ways and Means Committee held a “mock” mark-up of the bill and favorably reported the bill with the support of one Democrat, Rep. John Tanner.
The Committee rejected Democratic Amendments on ILO core labor standards, port security, and endangered species.
The Senate Finance Committee is expected to hold its “mock” mark next week.
While there is a slim chance the Committees COULD move this bill to a vote before the August recess, prospects for this outcome are dwindling with each passing day.
The Peru Coalition is having a host of meetings in Senate offices next week and the US Chamber sent up the “Peru:
Faces of Trade Book” to the Hill.

PNTR for Vietnam:
I hope you can check out a number of good op-eds on this issue that I have attached to this email.
The Senate Finance committee will hold a formal markup of this legislation next week.
This legislation does not enjoy the “protection” of the fast track procedure and is amendable.
The markup will tell us what amendments we will have to contend with on the floor, i.e. Vietnam-specific on human rights or religious freedom, China enforcement, or now, we could even see amendments related to port security.
Prospects for passage of this Agreement continue to be very good.
The Coalition’s meetings continue to tell us that this agreement enjoys broad, bipartisan support in the House and Senate.
The strategy is to move first in the Senate in order to prompt House action.
And while we hope the Senate will act in short order, Senate Finance Chairman indicated that the road may be a bit ‘bumpy”:
Grassley said a floor vote on Vietnam is possible before the August recess, but said members had raised the issue of religious freedom as a reason to take the debate on Vietnam more slowly.

"Good Morning, Vietnam"By Robert E. Rubin in July 12 Wall Street Journal

"Trade with Vietnam" by Richard Armitage and Randy Schriver in July 18 Washington Times

http://www.washtimes.com/op-ed/20060717-084232-9809r.htm

"Opening Vietnam trade doors" by Daniel Christman in July 16 Washington Times

http://www.washtimes.com/commentary/20060715-082333-5486r.htm

CIFIUS Reform:
I expect the bill to come to the House floor under suspension next week (Monday/Tuesday).
The bill will be a revised version of the bill reported out of House Financial Services Committee with a few tweaks from Energy and Commerce.
The Senate bill is expected to be voted on and pass the Senate the week of July 31.

WTO Doha:
USTR Schwab will be back in Geneva in talks trying to rescue this trade negotiating round.
Here is the latest From Senate Ag Committee Chairman, Saxby Chambliss:
“Yesterday I was informed by Administration officials that the European Union is prepared to make a market access proposal to cut tariffs significantly above the G-20 offer with limited protection for sensitive products.
This is welcome news and the type of serious proposal we have been waiting for.

If the Europeans are prepared to move, then this shows the Europeans are finally willing to be full participants in the negotiations and this will help trade ministers make significant progress this weekend.”

Russia WTO:
No deal yet, but US Officials are noting progress.
The Hill’s instance that IP protections and appropriate market access for beef and poultry are key items needed for the US to reach final agreement with Russia on the terms of their WTO Accession.

Nicole Venable
Director, International Trade & Global Competitiveness
U.S. Chamber of Commerce
1615 H Street, NW
Washington, D.C. 20062