A new bill being tabled by the government is expected to push its way through over the next month according to officials.
It is expected that the trade promotion authority (TPA) legislation, which is widely regarded as being a huge step forward towards free trade deals, is going to be passed by Congress within the coming weeks.
According to a report by Reuters: “We believe that the votes are there to move forward,” Catherine Novelli, U.S. under secretary of state for economic growth, energy and the environment, told reporters in Singapore.
“We do expect it to be passed soon, within the next month or so.”
The crux of the TPA legislation is that it will allow for lawmakers in the United States to set clear trade deal objectives in exchange for a yes-or-no vote.
The delays in finalising the legislation are casting a cloud over a 12-nation trade pact many thought was near completion, officials close to the negotiations told Reuters last month.
Novelli said she expects negotiations for the Trans-Pacific Partnership (TPP) deal to be concluded in a relatively short time.
According to Reuters the TPP would link a dozen Asia-Pacific economies by eliminating trade barriers and harmonising regulations in a pact covering two-fifths of the world economy and a third of all global trade making this a huge boost for international trade.
Catherine Novelli said the United States does not oppose the China-led Asian Infrastructure Investment Bank (AIIB) and that she understands the need to build infrastructure in Asia.
“There is plenty of room for everybody to participate in Asia. It is a huge economic space,” she said.
Recently the Chinese government has successfully managed to convince a number of allies of the United States into coming together to become founding members of the Asian Infrastructure Investment Bank.
With the Europeans choosing to work with China, this shows a change in the world dynamics regarding China and that the huge economic power has seen its status change with western governments.
The United States may have its own enormous economy but to be able to move forward and maintain growth then it is essential that there are easy trade links between other nations in the world to boost external investment into the country.
Traditional trade links have worked well in the past but now it is time to look to new emerging economies to help keep the wheels of the United States economy turning.