CQ TODAY – TRADE
April 23, 2007 – 9:23 p.m.
Congress Gets Several Messages on Importance of Fast-Track Trade Renewal

The president of Peru on Monday joined President Bush in urging Congress to pass the pending free-trade deal between the United States and his nation.

“It is vital for our country,” Alan García said after meeting with Bush at the White House. García said implementation of the pact would promote “growth and social redistribution” in Peru and shore up the country’s democracy.

The Peruvian legislature has already ratified the deal, leaving U.S. congressional approval as the final hurdle. But the agreement remains stalled, as do deals with Colombia, Panama and South Korea, as the administration negotiates with congressional Democrats on strengthened labor standards for the pacts.

House Ways and Means Chairman Charles B. Rangel, D-N.Y., has said he would not allow pending deals to advance without concessions on labor language. His office did not comment on García’s visit.

García stressed the need to expand trade between the two nations.

“It is important to show the world that a democracy, with investment, leads to development,” he said. “And development is not achieved by becoming static and not opening our doors to the market.”

Also in Washington on Monday, World Trade Organization (WTO) Director-General Pascal Lamy discussed the importance of achieving a breakthrough soon in the global negotiations known as the Doha Development Round.

Speaking at the U.S. Chamber of Commerce, Lamy said progress is needed as the expiration of presidential fast-track negotiating authority approaches on June 30. American leadership — and concessions — are essential to any agreement, he said, although he stressed that other WTO members also must step up to energize the talks.

The current trade promotion authority, or fast track (PL 107-210), requires expedited up-or-down congressional votes on trade pacts without amendment. Experts say that without it, U.S. trade negotiators face a near-impossible task because other countries know that any deal would probably be significantly altered by amendments.

WTO leaders hope to reach an agreement by year’s end. If Congress fails to renew fast track in any form, the practical effect could be a collapse of the Doha talks.

Last week, Rangel said he would support temporarily extending fast track to help complete Doha. Still, lawmakers are likely to insist on seeing evidence of a deal before considering a Doha-specific fast-track renewal.

“I’d like to see first what Doha is, frankly,” Senate Finance Chairman Max Baucus, D-Mont, said last week when asked about Rangel’s idea.

Lamy said WTO members recognize that Congress will consider Doha progress and the likelihood of a timely conclusion as they weigh fast-track renewal. “Many WTO members believe we have a window of opportunity which will close unless there is clear progress over the coming weeks,” he said.

Lamy also reminded lawmakers and the Bush administration that the rest of the world is watching the U.S. debate on fast track and other trade issues. “Many U.S. trading partners consider that no movement on TPA [trade promotion authority] means that the United States has lost faith in the Doha Round — as if the United States was shifting from ‘drive’ to ‘park.’ ”

Source: CQ Today
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