The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SM 174
INTRODUCER: Commerce and Tourism Committee and Senator Pizzo
SUBJECT: Trade
DATE: November 2, 2021
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Vigrass McKay CM Fav/CS
2. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SM 174 urges Congress to renew Trade Promotion Authority (TPA) to the executive branch.
The memorial also encourages the executive branch to negotiate a comprehensive and mutually
beneficial free trade agreement between the United States and the United Kingdom, and
encourages Congress to ratify such an agreement.
Legislative memorials are not subject to the Governor’s veto power and are not presented to the
Governor for review. Memorials have no force of law, as they are mechanisms for formally
petitioning the federal government to act on a particular subject.
II. Present Situation:
Trade Promotion Authority
Although the President has the authority to negotiate treaties with foreign countries, Congress
has the sole authority to regulate international trade.
1
“The President shall have Power, by and
with the Advice and Consent of the Senate to make Treaties, provided two thirds of the Senators
present concur.”
2
Since 1974, Congress has enacted TPA legislation that defines U.S. negotiating objectives and
priorities for trade agreements and establishes consultation and notification requirements for the
1
U.S. CONST. art. 1, s.8
2
U.S. CONST. art. 2, s.2
REVISED: BILL: CS/SM 174 Page 2
President to follow throughout the negotiation process.
3
TPA does not provide new power to the
executive branch, but rather, TPA is a legislative procedure through which Congress defines U.S.
negotiating objectives and details the oversight process used during trade negotiations.
4
TPA is only extended for limited periods, so Congress periodically reconsiders legislation to
extend it and to outline future negotiation objectives.
5
The most recent TPA expired on July 1,
2021. This precludes the opportunity to fast track trade agreements between the United States
and other countries.
6
Free Trade Agreements
A Free Trade Agreement is an agreement between two or more countries where the parties
involved agree on certain trade obligations for the purpose of reducing barriers and providing a
more stable and transparent trading environment. It also allows an easier process for U.S.
companies to export products or services to partner markets.
7
All U.S. Free Trade Agreements
(FTAs), except the agreement with Jordan, were considered in Congress under TPA.
8
The U.S. currently has FTAs with 20 countries. The current U.S. FTA partner countries include:
Australia; Bahrain; Canada; Chile; Colombia; Costa Rica; Dominican Republic; El Salvador;
Guatemala; Honduras; Israel; Jordan; Korea; Mexico; Morocco; Nicaragua; Oman; Panama;
Peru; and Singapore.
9
In 2020, the U.S., Mexico, and Canada renegotiated the North American
Free Trade Agreement and entered into force the United States-Mexico-Canada Agreement on
July 1, 2020.
10
US and UK Trade Negotiations
In July of 2017, the U.S. – UK Trade and Investment Working Group was established to provide
commercial progress for the UK and U.S. businesses, workers, and consumers to prepare for the
UK’s withdrawal from the European Union. On May 5, 2020, the U.S. and UK announced the
formal launch of trade agreement negotiations.
11
3
Office of the United States Trade Representative, Trade Promotion Authority, available at https://ustr.gov/trade-
topics/trade-promotion-authority (last visited Oct. 15, 2021).
4
Id.
5
Id.
6
Congressional Research Service, Brexit and Outlook for US-UK Free Trade Agreement (Jan. 14, 2021), available at
https://fas.org/sgp/crs/row/IF11123.pdf (last visited Oct. 15, 2021).
7
International Trade Administration, U.S. Free Trade Agreements, available at https://2016.export.gov/FTA/index.asp (last
visited Oct. 15, 2021).
8
Congressional Research Service, Major Votes on Free Trade Agreements and Trade Promotion Authority (July 22, 2020),
available at https://fas.org/sgp/crs/row/R45846.pdf (last visited Oct. 15, 2021).
9
Office of the United States Trade Representative, Free Trade Agreements, available at https://ustr.gov/trade-
agreements/free-trade-agreements (last visited Oct. 15, 2021).
10
Office of the United States Trade Representative, United States-Mexico-Canada Agreement, available at
https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement (last visited Oct. 15, 2021).
11
Office of the United States Trade Representative, U.S.-UK Trade Agreement Negotiations, available at
https://ustr.gov/countries-regions/europe-middle-east/europe/united-kingdom/us-uk-trade-agreement-negotiations (last visited
Oct. 15, 2021). BILL: CS/SM 174 Page 3
With total trade at over $250 billion a year, the U.S. and the UK are each other’s largest source
of foreign direct investment with about $1 trillion invested in each other’s economies.
12
More
than 1.25 million U.S. workers are employed by British companies in the U.S., and over 1.5
million Britons are employed by U.S. affiliates. Additionally, the UK is the United States’ 7
th
largest trading partner and the 5
th
largest export destination for U.S. goods and services.
13
Current Trade Agreements
As part of the U.S. – UK Trade and Investment Working Group, the U.S. and the UK have
signed agreements on specific products that were covered by existing agreements the U.S.
maintains with the EU.
14
These agreements between the U.S. and UK were entered into force on
December 31, 2020, to ensure that there was no disruption in trade for specific products between
the U.S. and UK. These new agreements include U.S. – UK Agreement on Trade in Wine; U.S. –
UK Agreement on Mutual Recognition of Certain Distilled Spirits/Spirits Drinks; Agreement on
Mutual Recognition; and Agreement on the Mutual Recognition of Certificates of Conformity
for Marine Equipment.
15
As of January 1, 2021, EU Trade Agreements no longer apply to the UK. The UK has sought to
replicate the effects of previous trade agreements to ensure continuity for UK business.
16
In
2018, the Trump Administration notified Congress, under TPA, of its intent to enter
comprehensive FTA negotiations with the UK. The U.S. and UK conducted five rounds of
negotiations in 2020, with negotiations pending over outstanding issues.
17
The most recent TPA,
which was established under the Obama administration, expired on July 1, 2021.
18
III. Effect of Proposed Changes:
CS/SM 174 urges Congress to renew TPA to the executive branch. The memorial also
encourages the executive branch to negotiate a comprehensive and mutually beneficial free trade
agreement between the U.S. and UK, and encourages Congress to ratify such an agreement.
Copies of this memorial will be dispatched to the President of the United States, the President of
the United States Senate, the Speaker of the United States House of Representatives, and each
member of the Florida delegation to the United States Congress.
12
U.S. Department of State, U.S. Relations with the United Kingdom. (Feb. 6, 2020), available at https://www.state.gov/u-s-
relations-with-united-kingdom/ (last visited Oct. 15, 2021).
13
U.S. Chamber of Commerce, U.S.-UK Trade and Investment Ties, available at
https://www.uschamber.com/international/europe/us-uk-business-council/us-uk-trade-and-investment-ties (last visited Oct.
15, 2021).
14
These existing agreements have covered trade with the UK by virtue of the UK’s membership in the EU. See Office of the
United States Trade Representative, U.S.-UK Trade Agreement Negotiations, available at https://ustr.gov/countries-
regions/europe-middle-east/europe/united-kingdom/us-uk-trade-agreement-negotiations (last visited Oct. 15, 2021).
15
Id.
16
Gov.UK, UK trade agreements with non-EU countries, available at https://www.gov.uk/guidance/uk-trade-agreements-
with-non-eu-countries (last visited Oct. 15, 2021).
17
Congressional Research Service, Brexit and Outlook for US-UK Free Trade Agreement (Jan. 14, 2021), available at
https://fas.org/sgp/crs/row/IF11123.pdf (last visited Oct. 15, 2021).
18
Id. BILL: CS/SM 174 Page 4
Legislative memorials are not subject to the Governor’s veto power and are not presented to the
Governor for review. Memorials have no force of law, as they are mechanisms for formally
petitioning the federal government to act on a particular subject.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None. BILL: CS/SM 174 Page 5
VIII. Statutes Affected:
None.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on November 2, 2021:
This amendment corrects the Memorial to reflect current trade conditions. The
amendment urges Congress to renew Trade Promotion Authority for the Executive
branch.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.