Already-signed US free trade agreements with Peru and Colombia face opposition from leading Democrats, who are demanding that the Office of the US Trade Representative renegotiate their labour provisions.
As written, the labour provisions require Peru and Colombia to enforce their own labour laws, but do not oblige them to comply with all the ‘core’ rights set by the International Labour Organisation. If either country were found to violate its domestic laws, it would have to pay a fine that would be used to address enforcement problems. Should the country fail to pay up, the US would be entitled to impose trade sanctions under the FTA. The Democrats requesting changes in the FTAs are calling for provisions that would bring both countries’ laws in line with ILO standards.
At the time of writing it was not clear when Congress would start its examination of the agreements.
ATPDEA Extension Possible
Andean countries started FTA negotiations with the US when the latter made it clear that the Andean Trade Promotion and Drug Eradication Act (ATPDEA) would not be renewed after its expiry at the end of this year. Now, however, the Bush administration has warmly recommended the extension of current preferences for all four members of the Andean Community (Bolivia, Colombia, Ecuador and Peru) for an as yet- undetermined period. Ecuador’s FTA negotiations with the US are suspended, while Bolivia’s have yet to start.
The current Republican chair of the Ways and Means Committee may submit new legislation on preferences to be considered by the House of Representatives in early December. According to some sources, however, the bill might extend ATPDEA for just Peru and Colombia, and that possibly for no longer than six months. The incoming Ways and Means chair Charles Rangel supports a two-year extension of the preferences for all four Andean countries.