White House Signals Movement On Pending Trade Agreements, by Leroy Baker, Tax-News.com, New York

Last updated 8 hours ago Tuesday, April 21, 2009

www. tax-news.com

The Obama administration has indicated that it wants to progress long-stalled free trade agreements with Colombia and Panama.

Following meetings with Latin American government leaders at the Summit of the Americas in Trinidad and Tobago last weekend, US Trade Representative Ron Kirk revealed that the US government is keen to begin negotiations with key lawmakers in a bid to secure Congressional approval for the trade agreements.

Both agreements were signed during the last term of the George W. Bush administration, but Congress needs to pass the relevant enabling law to allow the texts to be fully ratified.

However, senior House and Senate Democrats, who want stronger labor rights written into the agreements, have been able to block their progress. But with the administration and Congress now singing from the same hymn sheet, Kirk is optimistic that the agreements can be ratified sooner rather than later.

This will depend, of course, on Colombia and Panama, which have been criticised for stifling trade union activism, also agreeing to any changes to the agreements, but, after his return from the Caribbean, Kirk told reporters that both his meeting with Colombian representatives and the summit in general had been "very productive" for the US. He went on to add that the administration would consult with Congress "early and often" on the agreements.

The US National Foreign Trade Council, which represents a broad base of American multinationals, welcomed the administration's announcement, describing Columbia as a "critically important" economic partner for the US.

"We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway," said NFTC President Bill Reinsch. "Colombia has long been an important friend to and ally of the United States. With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement."

"Colombia has already proven its commitment to and diligence in working to prevent and stop crimes against trade unionists and all other members of Colombian society," added NFTC Vice President for Regional Trade Initiatives Chuck Dittrich.

"The Colombian Government has worked tirelessly to reduce the overall level of violence in the country, and has made significant strides in strengthening democratic institutions to restore and maintain the rule of law in a country once described as a failed state."

Under the US/Colombia trade agreement, first signed in November 2006, over 80% of US exports of consumer and industrial products to Colombia would become duty-free immediately, with remaining tariffs phased out over 10 years.

Key US exports would gain immediate duty-free access to Colombia. Colombia has also agreed to allow trade in remanufactured goods, and will join the WTO Information Technology Agreement.

The US/Panama agreement, signed in December 2006, will eliminate nearly 90% of Panama’s tariffs on industrial goods immediately, with remaining tariffs phased out over 10 years.

On April 20, Senators Max Baucus and Chuck Grassley, Chairman and Ranking Member respectively of the Senate Finance Committee, urged President Obama to resolve outstanding issues blocking the path towards Congressional approval of the other currently-stalled free trade agreement, that with South Korea.

"We have long supported a bilateral trade agreement with Korea, and we strongly believe an agreement would provide tremendous benefits to American workers, farmers, and ranchers.

Korea is already our seventh largest trading partner, our fifth largest agriculture export market, and our eighth largest market for goods exports," the Senators wrote in a letter to the President.
However, they warned that there is "further work to be done" if Congress is to support the agreement.

"In particular, Korea has yet to ensure US beef exporters full access to its market in accordance with international standards. Korea’s long history of non-tariff barriers to its autos sector also raises serious concerns with some regarding the agreement," the Senators wrote.

"Postponing addressing such issues will not make them easier to resolve," they added.

Free Trade Returns to the Table

By Joseph J. Schatz, CQ Staff

The Obama administration and trade advocates in Congress are trying to put a series of long-delayed trade pacts back on the front burner, despite widespread skepticism on Capitol Hill about the benefits of expanded international commerce.

On the heels of the Summit of the Americas in Trinidad and Tobago, U.S. Trade Representative Ron Kirk said Monday that a delegation from Panama will visit Washington this week to try to resolve disputes over the U.S.-Panama trade deal. Kirk added that President Obama hopes to clear remaining obstacles to a separate pact with Colombia.

Ultimately, Obama — who met with Colombian President Alvaro Uribe during the summit — believes that “a resolution of the Colombia trade agreement would be a good thing for both economies,” Kirk said.

Meanwhile, the chairman and ranking member of the Senate Finance Committee — Max Baucus , D-Mont., and Charles E. Grassley , R-Iowa — wrote Obama on Monday asking him to “begin the hard work of winning broad approval” of a trade pact with South Korea, which is stalled due to resistance from U.S. automakers and concerns over restrictions on the Asian nation’s beef imports.

All three trade deals were negotiated by George W. Bush ’s administration but have faced opposition in the Democratic-controlled House and Senate over the past two years. During his Senate confirmation process this year, Kirk told senators wary of mounting job losses — and public opinion polls showing declining support for free trade — that his office would undertake a comprehensive review of each trade deal.

At the same time, the United States has faced pressure from abroad not to appear overly protectionist in the midst of a global economic downturn, a posture many economists fear could slow a recovery.

But hammering out adjustments or side agreements that would win majority support in the House for any of the deals would be difficult. Labor unions, environmental groups and consumer advocates oppose all three agreements for varying reasons, including the effect of trade on American workers. And perhaps even more significantly, it’s unclear what it would take to satisfy Democratic leaders in Congress.

Lori Wallach, director of Public Citizen’s Global Trade Watch program, which is critical of recent trade agreements, argued that Kirk was trying to “create a sense of momentum on something that is highly contested and not decided . . . and has a huge political liability domestically.”

Trade critics contend that the North American Free Trade Agreement (NAFTA) resulted in U.S. job losses and complain that the three pending pacts were written in the NAFTA mold. Kirk, however, said concerns about NAFTA “can be addressed without having to reopen the agreement.” Some labor groups have called for a renegotiation of the pact, a move Obama also suggested during his presidential campaign.

Most Likely to Succeed?

The Panama deal has the fewest political problems of the three, in part due to its small size in terms of overall trade flows. But Sander M. Levin , D-Mich., chairman of the House Ways and Means Subcommittee on Trade, said in March that Panama has not yet met sufficient labor standards. He also raised concerns about the country’s reputation for banking secrecy and as a tax haven.

Kirk said he “will be working with the Panamanians to identify and resolve all of those issues.”

While declining to give a timeline, he said Panama’s own political situation may yield a “discrete” window to push the trade deal through — an apparent reference to the nation’s coming May presidential elections.

Concerns about violence against labor unions in Colombia have stymied movement on that deal, despite support from Democrats such as House Majority Leader Steny H. Hoyer of Maryland.

In a conference call with reporters Monday, Kirk said that while progress has been made toward addressing those concerns, there are “a number of issues that need to be resolved.”

But the fact that the Obama administration is talking about moving forward on the Colombia deal was cause for optimism among trade advocates eager for any sign of progress on their agenda.

“We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway,” Bill Reinsch, president of the National Foreign Trade Council, said in a statement. “With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement.”

On the U.S.-South Korea deal, Grassley and Baucus cast their comments in the context of North Korea’s widely condemned missile launch on April 5, adding that the trade deal would “anchor our economic presence in Asia.”

Baucus and Grassley acknowledged disputes over the entry of U.S. beef into South Korea — a key issue for the Montana chairman — and the fact that the trade deal would give South Korean auto companies wide access to the U.S. market despite ongoing concerns that the Asian country restricts imports of American cars.

Nonetheless, the two senators pressed Obama to keep negotiations moving.

“The issues are complex, and they may not be easy to resolve,” Baucus and Grassley said. “Yet their very complexity, as well as their potential rewards, demands we begin our work without delay and persist as long as necessary.”

In a conference call with reporters Monday, Kirk said that while progress has been made toward addressing those concerns, there are “a number of issues that need to be resolved.”

But the fact that the Obama administration is talking about moving forward on the Colombia deal was cause for optimism among trade advocates eager for any sign of progress on their agenda.

“We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway,” Bill Reinsch, president of the National Foreign Trade Council, said in a statement. “With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement.”

On the U.S.-South Korea deal, Grassley and Baucus cast their comments in the context of North Korea’s widely condemned missile launch on April 5, adding that the trade deal would “anchor our economic presence in Asia.”

Baucus and Grassley acknowledged disputes over the entry of U.S. beef into South Korea — a key issue for the Montana chairman — and the fact that the trade deal would give South Korean auto companies wide access to the U.S. market despite ongoing concerns that the Asian country restricts imports of American cars.

Nonetheless, the two senators pressed Obama to keep negotiations moving.

“The issues are complex, and they may not be easy to resolve,” Baucus and Grassley said. “Yet their very complexity, as well as their potential rewards, demands we begin our work without delay and persist as long as necessary.”

U.S. Trade Representative Ron Kirk reports progress on deals with Panama, Colombia

03:00 PM CDT on Monday, April 20, 2009

By TODD J. GILLMAN / The Dallas Morning News
tgillman@dallasnews.com

http://www.dallasnews.com/sharedcontent/dws/news/politics

/national/stories/042109dnnatkirk.f418b574.html

WASHINGTON – U.S. Trade Representative Ron Kirk reported progress today on pending trade deals with Panama and Colombia.

The former Dallas mayor accompanied President Barack Obama to the Summit of the Americas this weekend in Trinidad and Tobago, where he met privately with Panama's president, Martin Torrijos, and Colombia's president, Álvaro Uribe, to discuss separate free-trade deals long stalled in Congress.

Both countries are eager to finalize the deals, and Kirk said he's working "in good faith" to do so.
"It was a very productive summit for the U.S., and and it was something that I personally enjoyed," Kirk told reporters today in a conference call before attending the first meeting of the Obama Cabinet.

On Panama, Kirk said he's focused mainly on beefing up labor rules, and to a lesser degree addressing concerns in Congress about Panama's tax laws. Panama holds a presidential election next month, and Kirk said that may provide a "window to move more forcefully."

As for Colombia, Kirk noted that Uribe puts a high priority on the deal. And, although some Republicans fear the Obama team isn't as eager to finalize the deal, Kirk indicated the administration is interested in finalizing the deal, too. Democrats and U.S. unions cite concerns about violence targeting labor activists in Colombia.

"It was a very, very good, productive meeting," Kirk said, "My own personal thought as a mayor and as a lawyer is that when you've got two willing partners, that's a pretty good recipe for getting a deal done."

Kirk was careful in describing discussions pertaining to the North American Free Trade Agreement.

During the campaign last year, Obama told Midwest voters he would renegotiate the deal that is widely blamed for job losses. As president, Obama has softened that stance, which angered Mexico and Canada, though he continues to call for new labor and environmental safeguards.

Kirk said all three NAFTA partners are seeking "opportunities to strengthen" the deal, but Obama's goals "can be addressed without having to reopen the agreement."

"At an appropriate time I will be meeting with our colleagues to try to put a little form to that," he said.

At the summit, Obama's interactions with two leaders who are most antagonistic toward the United States – Venezuelan strongman Hugo Chavez and Bolivian leader Evo Morales – were closely watched.

Kirk said he personally had only passing contact with those leaders, devoting much of his time getting to know trade ministers from Latin America with whom he'll work in coming years.

"I'd like to think I'm a reasonably pleasant fellow," Kirk joked, though "it was a good substantive dialogue as well."