Subject: Re: Tariffs and the senate
From: Bracken Hendricks <[email-masked]>
To: Tara McGuinness <[email-masked]>
Cc: "[email-masked]'" <[email-masked]>
Date: Wed, 8 Jul 2009 05:03:04 -0400

Agreed.  I was at the AFL-CIO last night to welcome Franken, and ran  
into a lot of similar comments and concerns, and a mix of thoughts on  
how calculated Obama's position was.  If it was planned, I don't think  
it was widely discussed.

I thought John's response at NBC was right on target.  Focusing less  
on the tariff itself and instead drilling down on how to make sure we  
don't shift our emissions over seas, to my mind, offers the best  
chance of addressing the issue without inflaming protectionist fears.

B.

On Jul 7, 2009, at 10:51 PM, Tara McGuinness wrote:

> So, when I said I thought obama worked this out behind closed doors,  
> I might have been wrong.
>
> One interesting quote from senator brown in congress daily:
>
> Brown said that while Obama is open to the tariff authority, "I'm  
> worried
> more about his advisers." He clarified that Obama's economic  
> advisers "look
> at trade differently" than others. He said he has talked to Obama  
> about
> this and will continue talking to the White House.
>
> CongressDaily AM for Wednesday, July 8, 2009
>
> ENVIRONMENT: MIDWESTERN SENATORS FIRM ON CLIMATE TARIFF PROVISIONS
>
> By Darren Goode with Peter Cohn and Megan Scully contributing
>
>
> Midwestern Democratic senators are holding firm on challenging the  
> White
> House on allowing the federal government to issue tariffs against
> developing countries that do not take certain steps to reduce  
> greenhouse
> gas emissions.
>
> These Democrats say they need tariff authority at least as strong as  
> that
> in a House climate bill, a position that for the moment pits them  
> against a
> White House trying to help Democratic leaders secure swing votes to  
> get the
> needed 60 votes for a broader Senate bill.
>
> "This bill doesn't pass unless it takes care of manufacturing," Sen.
> Sherrod Brown, D-Ohio, said. "And this bill doesn't take care of
> manufacturing without border adjustments."
>
> President Obama, while overall commending the House bill, told a small
> gathering of reporters June 28 of granting tariff authority: "At a  
> time
> when the economy worldwide is still deep in recession, and we've  
> seen a
> significant drop in global trade, I think we have to be very careful  
> about
> sending any protectionist signals out."
>
> But Obama has also pushed Democratic leaders to send him a bill to  
> sign
> before the United States heads to UN climate change talks in Denmark  
> in
> December to provide leverage with developing nations like China and  
> India.
>
> Brown rejected the protectionist argument. "It's not protectionism;  
> it's
> fair play," Brown said. The Ohio Democrat -- who is working with Sen.
> Debbie Stabenow, D-Mich., on multiple ideas to protect domestic
> manufacturers in a cap-and-trade plan -- said his biggest priority is
> toughening the House tariff language. He noted that is key to  
> picking up
> support from House Democrats in his state and perhaps elsewhere in the
> Midwest who merely "were satisfied with the progress" made in the  
> House
> bill. The House bill scraped by on a 219-212 vote, with several  
> Democrats
> noting they were voting for it with the hope it would be improved in  
> the
> Senate.
>
> Brown said that while Obama is open to the tariff authority, "I'm  
> worried
> more about his advisers." He clarified that Obama's economic  
> advisers "look
> at trade differently" than others. He said he has talked to Obama  
> about
> this and will continue talking to the White House.
>
> Sen. Carl Levin, D-Mich., said the tariff language his brother --  
> House
> Ways and Means Trade Subcommittee Chairman Sander Levin, D-Mich. --  
> helped
> author in the House bill is "very reasonable." The deal Rep. Levin  
> worked
> out with House Energy and Commerce Chairman Henry Waxman requires the
> president, beginning in 2020, to impose a border adjustment unless he
> determines it would not be in the national interest. Such a waiver  
> would be
> subject to congressional approval. The president could also opt to  
> impose
> zero tariffs if he deems emissions allowances have erased foreign
> competitors' advantage, with specific criteria outlined.
>
> The concern is that domestic manufacturers otherwise could see their  
> costs
> rise to the advantage of foreign competitors when greenhouse gas  
> emissions
> and related jobs shift overseas if an international climate change
> agreement cannot be reached.
>
> Republican critics of a cap-and-trade plan have argued that China --  
> which
> has surpassed the United States as the world's largest carbon  
> emitter --
> and India will not play along. China so far has agreed to reduce their
> "energy intensity" 20 percent over five years, while India has flatly
> refused to adhere to mandatory greenhouse gas reductions and has  
> blamed
> developed countries for climate woes there and in other developing  
> nations.
>
> The Senate Finance Committee today is holding a hearing on the issue  
> as
> part of a broader look at international trade implications of climate
> change legislation. Finance Chairman Max Baucus recently struck a
> diplomatic tone while not ruling out some variation of the House  
> language.
> "Our challenge is to craft climate legislation in a manner that both  
> meets
> our domestic priorities and respects international trade rules,"  
> Baucus
> said in a statement to CongressDaily. "I've said before we must  
> level the
> regulatory playing field by encouraging other countries to adopt  
> their own
> emissions limits, while minimizing competitive disadvantages to  
> American
> firms."
>
> Domestic industry groups -- such as the American Iron and Steel  
> Institute
> -- have argued that the Senate needs to go farther than the House  
> and move
> up the date for the president to start assessing whether other  
> countries
> have taken similar steps to curb emissions. But groups like the U.S.
> Chamber of Commerce and National Foreign Trade Council have said the  
> House
> language could start a trade war and violate global trade rules.
>
> Granting tariff authority is one of several issues Democratic  
> leaders need
> to work out with scores of swing-vote Democrats and a handful of  
> moderate
> Republicans.
>
> Senate Foreign Relations Chairman John Kerry -- whose panel is  
> holding a
> hearing today on reducing global emissions while staying competitive  
> with
> developing nations -- said he is meeting with individual senators in  
> both
> parties "who have had problems with [cap-and-trade legislation] in the
> past." He met with several senators Tuesday and was scheduled to sit  
> down
> with Environment and Public Works Chairwoman Barbara Boxer Tuesday  
> night,
> he said.
>
> Boxer Tuesday said the plan is to "keep the structure" of the House  
> bill
> but said details are still being discussed. "I'm going to say  
> everything is
> on the table," she said. Boxer is hoping to mark up a bill in her  
> panel
> before the August recess and Majority Leader Reid seems poised to  
> try to
> move a bill on the floor in October.
>
> Kerry said the House bill took care of some of the concerns he has  
> heard
> "but we have to make that case" to senators less familiar with the  
> bill, he
> said. He said getting 60 votes is doable "but it's going to take a  
> lot of
> work." Echoing how House Democratic leaders pulled together  
> individual or
> group deals with Democrats worried about the impact on coal,  
> manufacturing
> and the agriculture industry, Kerry said, "We need to walk through  
> those
> very carefully over here."
>
> Some Democrats Tuesday laid out broad concerns with a bill. Sen. Maria
> Cantwell, D-Wash., who has criticized the idea of setting up a carbon
> market, as in a cap-and-trade program, said the House bill is "way too
> complex." Sen. Jim Webb, D-Va., said he also has "serious questions"  
> about
> a cap-and-trade program and its effect on U.S businesses "absent  
> very clear
> commitments from countries like China."
>
> Sen. John (Jay) Rockefeller, D-W.Va., said he would vote against the  
> House
> bill but that "there's lots of opportunities" to make a plan more  
> palatable
> to his state's coal industry.
>
> Sen. Joseph Lieberman, D-Conn., a close ally of Sen. John McCain, R- 
> Ariz.,
> said he has not spoken to the 2008 GOP presidential candidate about  
> the
> issue yet but plans to. Lieberman said more broadly he wants to work  
> out
> deals with other Republicans "who have not said 'no, never,'" as  
> well as
> moderate Democrats and liberal Democrats from "high coal burning  
> states."
> Lieberman said a key to getting 60 votes is to "beef up" help for  
> nuclear
> energy.