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.
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