White House uses slow GDP growth to push trade agenda

The White House said sluggish economic growth in the first quarter shows the need for Congress to advance President Obama’s trade agenda.

“The U.S. economy is directly affected by the global economy, making clear the importance of advancing trade promotion authority in Congress so the president can take further steps to open up markets abroad to increase U.S. exports and expand opportunities for the middle class,” Council of Economic Advisers Chairman Jason Furman wrote in a blog post Wednesday.

The U.S. gross domestic product (GDP) grew at a 0.2 percent rate in the first three months of the year, a significant slowdown from the last half of 2014.

The White House said falling U.S. exports, driven by slow growth abroad, played a significant role, claiming the decline subtracted a full percentage point from quarterly GDP growth.

“The sensitivity of our exports to foreign demand, especially in an environment where foreign demand is slowing, underscores the importance of reducing trade barriers and opening foreign markets to our exports,” Furman wrote.

Obama is pushing Congress to pass a bill that would give him “fast-track” authority to finalize the Trans-Pacific Partnership (TPP), a sweeping free-trade pact among a dozen Pacific Rim nations.

The president touted progress made toward a deal on Tuesday during a state visit with Japanese Prime Minister Shinzo Abe, a U.S. partner on the TPP.

But Obama faces opposition from Democrats and labor unions, who don’t want to grant him fast-track authority over concerns that new trade deals could ship American jobs overseas.