TRADEFTA UpdateBush Administration officials have begun the uphill work of moving trade deals with Peru, Panama and Colombia through Congress. Labor remains the linchpin for congressional approval of those agreements. Democrats seek a return to something along the lines of the labor provision in the US-Jordan free trade agreement. At a minimum, Democrats want trade agreements to spur improvement in those laws by obligating countries to meet core international labor standards. And they want violations punishable by trade sanctions, the same penalty available for skirting commercial obligations. The Bush Administration has therefore agreed to negotiate changes in the labor chapters of the trade deals with these three countries. “We are open to a dialogue with Congress regarding the labor chapter in those agreements,” said Deputy Trade Representative John Veroneau. “It is clear that some adjustments to that chapter will be made before Congress takes those up.” Further, the countries have been notified that changes will be necessary, and they understand the need for some accommodations to ensure broad bipartisan support on Capitol Hill. Reaching agreement on the labor provisions alone might be a formidable challenge before March 30 - the date that agreed-upon language must be in place for the Peru, Colombia or Panama agreements to be considered under current trade negotiating authority rules. There is also a split between Democrats and the Administration about the legal instrument that should be used to add strengthened labor commitments to trade deals. White House officials insist the additions must be dealt with through side letters in the case of Peru and Colombia since those agreements have already been signed. Administration Officials Split on DohaUS Trade Representative Susan Schwab told reporters that she still hopes there will be progress on the Doha round. Jean-Luc Demarty, Director General for Agriculture in the European Commission, had offered to reduce EU agricultural tariffs by 55% to 56% rather than the 39% in its most recent offer and that US negotiators had offered to reduce US trade-distorting subsidies to $17.5 billion per year rather than $22 billion. Meanwhile, Agriculture Secretary Johanns took a hard line on prospects for the Doha Round saying the US position would depend on the willingness of other countries to offer easier market access to US agricultural products. Johanns added that he regarded criticism from other countries that the Bush Administration’s farm bill would not reduce subsidies enough as a “lot of noise” and that he considers such criticism “an interesting distraction” from working on the Doha round. Freshmen Want Voice in TradeClaiming a mandate from voters, the House’s large class of Democratic freshmen is seeking a role in shaping trade legislation the chamber might consider this year. Thirty-nine of the 42 first-term Democrats wrote to House Ways and Means Chairman Charlie Rangel (D-NY) asking to be heard “in crafting a new model for US trade agreements.” The effort was led by Rep. Betty Sutton (D-OH) who was elected to fill the seat of now-Sen. Sherrod Brown, who was long a key House opponent of Bush Administration trade policies. The letter asked Rangel to seek opportunities to discuss trade with members of the Democratic Caucus who do not serve on the Ways and Means Committee. There are no freshmen on the panel. Meanwhile, Rangel and Ways and Means ranking member Jim McCrery (R-LA) offered a glimpse of areas of oversight the panel might pursue. On the agenda for the Trade Subcommittee is oversight of the US-Korea free trade agreement negotiations and other pending free trade agreements. Chinese intellectual property and currency abuses - and strengthening US remedies against unfairly traded imports - will be another area of focus.
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