House Puts Brakes On Colombia FTA Discussions

by Mike Godfrey, Tax-News.com, Washington

14 April 2008

US Treasury Secretary Henry Paulson and Trade Representative Susan Schwab have spoken out in light of the decision made by Congress to stall the country's pending Free Trade Agreement with Columbia.

Mr Paulson argued that:

"The Trade Promotion Authority process has served America well, enabling us to open markets around the world to US exports. And today, exports are the bright spot in our economy. I can't recall another time when trade has played such a vital role in creating jobs for American workers."

"Changing the rules in the middle of the game is fundamentally unfair to Colombia, a good friend of the United States, and to all those in the region who have stood with Colombia as it has created stability and opportunity for its people."

"Changing the TPA process could have lasting impact, undermining our country's ability going forward to open foreign markets to American goods and services," he continued, concluding:

"It also sends an unwelcomed signal to global markets at an economically sensitive time. I urge the Congress not to chip away at an agreed process, and in so doing isolate US workers from opportunities around the globe."

Ms Schwab, meanwhile, commented:

“The US - Colombia Free Trade Agreement would have brought fairness to US workers by finally leveling the playing field for our exports to Colombia. Colombia’s exports to our market already enter duty-free, and the Colombia FTA would have opened their market to the products of American workers, farmers, and entrepreneurs."

“When Congress enacted Trade Promotion Authority in 2002, it chose to enact rules that the United States and the other sovereign nations we negotiated trade agreements with followed. Now, the House is choosing to not honor those rules by changing them – in the middle of the game."

"The action by the House will have profoundly negative consequences for our workers, our relationship with Colombia, and the credibility of the United States. This is a sad day for the United States of America as the reckless decision by the Democratic House Leadership dismantles over thirty years of bipartisan trade policy precedent," she explained, adding that:

“The Administration held extensive consultations with Congress before negotiations on the Colombia free trade agreement began, during negotiations, and after the agreement was signed in November 2006. The Administration worked with Colombia, at Congress’ request, to add new strengthened environmental and labor provisions – as negotiated with the Democratic Leadership - into the core text of the agreement."

"Since September of last year, the Administration has held over 400 consultations with Members of Congress and led 8 Congressional trips to Colombia with 55 members of the House and Senate. The Administration has repeatedly reached out to the Congress to engage in discussions so that we could move the Colombia agreement forward to a successful bipartisan vote. Congress has yet to act."

“I believe that opening overseas markets and leveling the playing field for our workers and families – and honoring the rules that we all play by – is the right thing to do, the smart thing to do, and simply makes sense."

“The administration has gone above and beyond its statutory commitment under Trade Promotion Authority. Frankly, we have bent over backwards – time and time again – only to see the goalposts move further and further away. Changing the rules now only makes losers of American workers, farmers, and service providers,” Schwab concluded.

Last Monday President Bush urged Congress to cease its lengthy deliberations over the US-Colombia Free Trade Agreement and pass the necessary legislation before his presidency expires.

Making use of his authority to 'fast track' legislation through Congress, Bush signed a letter that was designed to trigger the procedure whereby the US-Colombia FTA must be considered within 90 legislative days.

According to the rules of the Trade Promotion Authority, the full House should vote within 15 legislative days, for a total of 60 legislative days.

However, the House vote has put the brakes on the fast tracking procedure, and the future of the controversial agreement seems likely to remain uncertain for at least 90 days longer.

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