Bridges Weekly Trade News Digest • Volume 12 • Number 33 • 9th October 2008
US Congress May Put Trade Deals on Hold for 2008
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Despite efforts by the Colombian and Panamanian governments to gain US approval of their respective Trade Promotion Agreements (TPAs), it appears that any discussion on the trade deals will be further delayed as US lawmakers turn their attention to the upcoming presidential and congressional elections, now less than four weeks away. Three trade agreements - with Colombia, Panama and South Korea - are currently awaiting Congressional approval.
But US domestic issues - including the elections and the recent financial crisis - are expected to fill Congress’ agenda over the next month, leaving little room for commercial affairs. House Majority Leader Steny Hoyer, a Democrat, said that “no action” was expected on trade issues before the elections on 4 November.
If Congress fails to vote on the agreements by the end of the year, it might be “a long time” before the treaties are approved, Frank Vargo, vice president for international economic affairs for the National Association of Manufacturers told Reuters. Congressional approval may be elusive well into 2009 while the new US President and new legislators work to find consensus on trade issues.
But Bill Reinsch, president of the National Foreign Trade Council, which represents multinational corporations in the US, remains optimistic. He argues that it is still possible that legislators could adopt the agreement with Colombia or Panama after the elections but before the end of the year.
US Trade Representative Susan Schwab urged legislators to act quickly to approve the deals. “Congress should approve the FTAs with Colombia, Panama and Korea, which would reduce or eliminate tariffs faced by American goods and services sold in those countries,” she said in a statement released. “Opening markets around the world to US goods and services can only help boost our economy and create new, and higher-paying jobs,” she said
Achieving US adoption of the TPA became a priority of Colombian President Álvaro Uribe, who toured the US in late September in an attempt to garner support for the deal. The TPAs have even received the collective backing of the leaders of 10 Latin American nations who issued a letter on 30 September urging Congress to approve the TPAs.
ICTSD reporting; “Pactos comerciales EEUU podrían languidecer otro año,” REUTERS, 2 October 2008; “Presidente Uribe inicia gira por Estados Unidos,” EL PAÍS, 18 September 2008; “10 gobiernos americanos piden a Bush que ratifique dos TLC,” PATAGONICO, 30 September 2008.
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http://american-platform.com/america/2008/10/10/us-colombia-trade-promotion-agreement/