[CTC_TRADE] Little Indication of Movement on Stalled Trade Deals

[Mark Harrison]

CQ TODAY ONLINE NEWS - TRADE
March 1, 2010 - 1:25 p.m.
Little Indication of Movement on Stalled Trade Deals
By Joseph J. Schatz, CQ Staff

The Obama administration's newly released 2010 trade agenda gives little indication that the White House will quickly advance long-stalled pacts with Panama, Colombia or South Korea, despite President Obama's increasing focus on international commerce.
After having U.S. Trade Representative Ron Kirk review the Bush-era agreements throughout 2009 and drawing criticism from business groups eager for a more aggressive trade liberalization policy, Obama has been talking up the importance of exports lately.
The agenda released by Kirk's office Monday morning stressed the new export focus, and says the administration is engaged in "unprecedented" consultations with Congress over the shape of impending negotiations on a Trans-Pacific Partnership, an Asia-Pacific free trade group.
But the agenda, which Kirk will discuss at a Senate Finance Committee hearing Wednesday, is cautious when it comes to the Panama, Colombia and South Korea deals that were inked by the George W. Bush administration. Amid concerns from labor unions and their congressional allies - and, in the case of the South Korea deal, the U.S. auto and beef industries - none of the three deals has seen action by the Democratic-controlled House or Senate.
On Panama, the administration is seeking "an understanding on tax transparency rules," according to Kirk's report, amid concerns about the country's banking secrecy practices, and is talking with the Panamanian government about its labor regime.
As for one of the biggest issues surrounding the Colombia pact, the office is working with the Colombian government "to address violence against labor union officials to ensure that union rights in that country can be fully and freely exercised," the document says.
And with regard to South Korea - where Ford Motor Co. argues that barriers to market access for U.S.-made vehicles remain prohibitive - Kirk's office is "determining how best to address outstanding issues" on autos and the imports of U.S. beef.
"If these outstanding issues can be successfully resolved, we will work with Congress on a timeframe to submit them for congressional consideration so our producers can take full advantage of the opportunities presented by these agreements," the document said.
'Longstanding Divides'

That prognosis is unlikely to spark much excitement among business groups or congressional trade advocates who have been pushing the White House to send the pacts to Congress and put political capital on the line to approve them.
But amid high unemployment rates, soured public attitudes about free trade policy and opposition from union allies who have been disappointed with other administration initiatives, Congress has been in no mood to consider trade pacts.
Obama has been publicly pushing export expansion as a job-creator, however, particularly when it comes to Asia.
"I know that trade policy has been one of those longstanding divides between business and labor, between Democrats and Republicans. To those who would reflexively support every and any trade deal, I would say that our competitors have to play fair and our agreements have to be enforced. We can't simply cede more jobs or markets to unfair trade practices," Obama told corporate executives in a Feb. 24 speech.
"At the same time, to those who would reflexively oppose every trade agreement, they need to know that if America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores."
Pacific Groundwork

On the Pacific Rim pact, the administration said that consultations with all 50 states and key congressional committees are ongoing, and promised to consider concerns from small businesses and labor and environmental advocates as it drafts goals for upcoming negotiations.
"This effort will also demonstrate that a properly designed process of expanded consultation with stakeholders and Congress does not have to slow down trade negotiations, but can in fact energize talks," the document said. That effort is still in its earliest stages.
The current members of the Trans-Pacific Partnership are Singapore, New Zealand, Brunei and Chile; the United States, Vietnam and Peru are all potential additions.
"Ninety-five percent of the world's consumers live outside the United States, and the president's trade agenda will help to get American workers and businesses access to as many of those customers as possible - in ways that affirm our rights in the global trading system and that reflect American values on worker rights, the environment, and open dialogue here at home," Kirk said in a statement. "The priorities in this agenda can work to strengthen the rules-based global trading system on which the nations of the world depend, while opening markets and ensuring that American businesses and workers receive the economic benefits of trade."


Mark W. Harrison
Director, Peace with Justice Program
United Methodist General Board of Church and Society



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