US-Korea FTA Progress Uncertain

by Mary Swire, for LawAndTax-News.com, Hong Kong

11 April 2008

Observers have suggested that the recent set-to in Congress over the US-Columbia Free Trade Agreement is indicative of a changing political climate, which may have an effect on the ratification of a similar FTA with South Korea.

President Bush on Monday 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 this week signed a letter that will trigger a procedure whereby the US-Colombia FTA must be considered within 90 legislative days.

However, the move angered Democrats, and Sen. Max Baucus, Chairman of the Senate Finance Committee warned Bush that he is "making a big mistake” by forcing Congress to vote on the Colombia trade agreement without a chance to properly consider the legislation.

According to Baucus, Bush's decision represents "an abuse of the fast-track process for trade agreements, and may well turn supporters and potential supporters of the Colombia agreement into opponents of the deal".

"Forcing this vote now is a disservice to American workers and to our trading partner, Colombia, as well. Colombia is an important ally in a troubled region. I urge the President not to add fuel to the fire surrounding this agreement, but to reconsider this unwise decision," he stated.

South Korea's President, Lee Myung-bak is reported to be visiting Washington next week in an attempt to to move the FTA process forward. The agreement was signed in June of last year, but remains to be approved by either country, due in part to a dispute over South Korea's ban on beef exports from the United States.

Reports in the US media have predicted an announcement on the ban by President Lee during his visit, which would likely improve the FTA's chances of being approved by US lawmakers.

However, key Democrat figures, such as Presidential hopefuls Hillary Clinton and Barack Obama have condemned the Korean FTA and others like it as bad for workers in the US.

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