Washington Insider-- Friday

By DTN's Washington Insider

Here's a quick monitor of Washington farm and trade policy issues from DTN's well-placed observer.

U.S. Labor Unions Concerned About 'Secrecy' of TTP Negotiations

Organized labor in the United States has been highly critical of the proposed Trans-Pacific Partnership free trade agreement almost from the start. Labor leaders worry freer trade among the 12 Pacific Rim nations conducting TTP talks could mean the loss of a number of higher-paid, better-benefits jobs in the United States.

Accordingly, labor would like to have a greater input in the negotiations, but has been somewhat thwarted due to what its leaders say is the secrecy of the talks. In fact, said a top AFL-CIO official, the fact ongoing TTP negotiations have been conducted behind closed doors is one of the principal reasons organized labor remains wary of the provisions of the potential deal. Thea Lee, the organization's deputy chief of staff, told reporters that the umbrella group is calling on the administration "to release the negotiating texts and ask our negotiating partners to do the same."

The European Union recently decided to make the negotiating text of the Transatlantic Trade and Investment Partnership agreement with the United States available to the 751 members of the European Parliament. But even European officials acknowledge that releasing that information to the general public would be a formula for derailing the TTIP talks. Organized labor in the United States almost certainly agrees with that assessment, which is the likely, if unstated, reason it is calling for U.S. negotiating points to be made public.

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Senate Expected to Approve Tax 'Extenders' Bill Before Adjourning

Senate Majority Leader Harry Reid, D-Nev., has warned his charges that they should expect to be in Washington this weekend to finish work on several must-have bills. These include one that would extend a number of tax breaks that expired in 2013.

The House already passed the measure, which would retroactively extend 55 lapsed tax incentives, but only through the end of this year. It is widely expected the Senate will clear the measure and send it to President Obama, who is expected to sign it into law.

Approving the so-called tax extenders bill would give a boost to a number of industries that have come to rely on the tax credits. It also will allow the Internal Revenue Service to finalize forms and publications covering the current tax year.

But perhaps most importantly, it should provide a boost to efforts to make major reforms to the federal tax code early next year that could include making permanent some of the tax credits in the extenders bill. Republicans have been talking about such a reform package for several years, and the president has indicated he is on board for the process. Now all that remains to be worked out are the details.

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Washington Insider: Appropriations Thunderbolt

Years ago, in 1941, Jamie Whitten was elected to the U.S. House of Representatives in a special election. He later won a full term, and then was re-elected 25 more times, serving from 1941 to 1995, which was a longevity record at the time.

Because of his deep interest in agriculture and the details of farm policy –– as well as his long-time use of the appropriations process to shape that policy –– Nick Kotz, a well-known reporter for the Washington Monthly, wrote in 1969 that Whitten was in fact the Permanent Secretary of Agriculture — a term intended to indicate the power Whitten often wielded. Kotz probably did not intend it as a compliment.

Whitten's memory is called to mind as the House and Senate move forward with their agreement on an omnibus appropriations measure to fund the government through next September. The reason is that in addition to massive spending authorities, the bill covers many, many policy interventions, including some reminiscent of Congressman Whitten's use of his appropriations powers.

The bill includes a number of broad funding measures such as $73.7 billion for Overseas Contingency Operations, including the fight against ISIS; $5.4 billion in emergency funding to address the Ebola outbreak; $6.5 billion of disaster aid; and $1.5 billion in "program integrity funding."

One rider would allow multi-employer pension plans to reduce the benefits of existing retirees. Another would amend the Dodd-Frank Act to modify its "Swap Pushout Rule." Primarily as a result of these "dark of night" provisions, the bill has quickly become enormously controversial.

Several of these policy riders affect agriculture directly, including the U.S. country-of-origin labeling policy that has been controversial since its initial implementation. It has been twice been found illegal by the World Trade Organization, but the United States is appealing. The appropriations Act won't directly change the program, but does direct USDA to recommend changes needed in COOL requirements "that aren't in conflict with international trade obligations."

USDA's recommendations would be due within 15 days of final resolution by the WTO, including all pending appeals or May 1, 2015, whichever comes first.

One statement in the bill also would direct USDA not to implement a second beef marketing and research check-off program, as it has been considering doing.

Another provision in the bill itself would nullify the new livestock marketing rules the administration put in place after the 2008 farm Act, but which are opposed by meatpackers. Members of the National Sustainable Agriculture Coalition have been quick to note that it is unprecedented for Congress to use an appropriations bill to rescind regulations already in place.

Observers also pointed yet another intervention spelled out in the explanatory statement which would halt Farm Service Agency plans to close 250 local offices, especially those whose workload has dwindled to very low levels. This fight has been ongoing for years, as USDA seeks to trim its overhead costs in recognition of the fact that most of today's interactions are electronic. About the only thing more bitterly protected than local USDA offices are local high school football teams, critics say, and, even those rural schools seem to be consolidating more rapidly than USDA's offices are.

Well, there are many more interventions in this bill including possibly some not yet noticed. But, perhaps the most puzzling is language requiring the U.S. Food and Drug Administration to work with the food industry "to identify questions and concerns, and provide any clarification necessary, including publication of any necessary guidance on a regulation to require calorie counts on menus for restaurant and carry-out food." It likely will surprise no one if some instances of needed clarification are found, but it will certainly be interesting see what "necessary guidance" turns out to imply. Observers in the food industry suggest they may have too much guidance along those lines already.

So, it may be a while before any of the current crop of appropriators is appointed as a new "Permanent Secretary of Agriculture," or has a building on USDA's Washington Campus named in their honor, as Whitten does. But the current secretary may be excused if he thinks there are new competitors for a growing part of his job that are not entirely welcome, Washington Insider believes.

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(GH/CZ)

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