Four More Free-Trade Agreements on the Horizon
Free-trade agreements with Panama, Peru, Colombia and South Korea are getting closer to reality after Congress worked out a bipartisan trade policy between Democrats and Republicans.
After months of negotiations, congressional leaders and Bush administration officials announced on May 10 they had hammered out a trade policy agreement that tackled issues such as labor, the environment, port security, investment and training initiatives. These issues will be integrated into the pending trade agreement.
It was still unclear whether this new policy would lead to an extension of President Bush’s authority to fast-track trade agreements through Congress, a power that expires June 30. Fast-tracking, which allows Congress only a yes or no vote on trade agreements, has led to a host of free-trade accords being passed since Bush took office in 2001.
Already, the buzz is that trade agreements with Peru and Panama will speed along. Congressman Charles Rangel (D–N.Y.), who heads the House Ways and Means Committee, noted that the new trade policy clears the way for congressional support for free trade with those two Latin American countries.
Less certain is how soon free-trade agreements will be completed for Colombia and South Korea. It is likely Democrats will push for more labor rights in the Colombian accord and address beef and automotive issues for South Korea.
The American Apparel & Footwear Association, based in Arlington, Va., applauded the congressional trade policy agreement and urged swift approval of all pending trade agreements. “Important trade agreements have been on hold during these negotiations,” said Kevin Burke, the AAFA’s president and chief executive. “Now that policy issues have been addressed, it is imperative that Congress approve the U.S./Colombia and U.S./Peru trade promotion agreements immediately.”
The agreement was also supported by the National Retail Federation in Washington, D.C. “While we look forward to this agreement providing a basis to advance important issues on the trade agenda, we hope that the provisions on labor and the environment will not be used for protectionist purposes,” said Erik Autor, the NRF’s vice president and international trade counsel. “We will work to ensure that this agreement will be used to advance the cause of free trade and the economic and job growth that comes with free trade.”—D.B.
