WHITE HOUSE, CONGRESS FINALISE NEW TRADE PROVISIONS

The Bush administration and US legislators from both parties have finalised formal legal text for incorporating stronger environmental, labour, and access-to-medicine provisions in bilateral trade agreements, officials said on 25 June.

In a joint statement, representatives Charles Rangel (D-New York), chair of the House Ways and Means Committee, and Sander Levin (D-Michigan), chair of the Subcommittee on Trade, praised the template, saying that it "achieves the goals" for trade policy that the Democrats had set out in March (see BRIDGES Weekly, 28 March 2007).

The text, which builds on a framework compromise that Congressional Democrats, Republicans, and the administration struck last month, is expected to improve the prospects of the US' pending free trade agreements with Colombia, Panama, Peru and South Korea (see BRIDGES Weekly, 16 May 2007). However, those countries must agree to the changes before the trade deals can be put to a vote in Congress.

Peruvian officials have already moved to approve the new slate of legally binding provisions. On 26 June, Trade Minister Mercedes Araoz signed off on the amendments and expressed confidence that the Peruvian Congress, which was set to debate the amendments the following day, would also agree to the changes. Araoz told reporters that the provisions call for new legislation to rein in illegal logging, as well as stronger enforcement of existing labour laws.

US Trade Representative Susan Schwab expressed optimism that the accords would be approved. "I now look forward to Congressional action on the Peru agreement in July, and the agreements with Colombia, Panama and Korea as soon as possible," she said in a statement.

While the Peru deal is progressing rapidly, the Colombian and Korean agreements continue to face serious challenges in Congress. Many senior lawmakers have expressed deep concern over Colombia's history of violence against trade unionists, and have argued that the Korean deal would hurt US autoworkers.

In related news, Congressional leaders announced on 26 June that they had reached a bipartisan agreement on terms for an eight-month extension of trade preferences that allow most exports from Bolivia, Colombia, Ecuador, and Peru to enter the US duty free. At time of writing, lawmakers were set to vote on renewing the Andean preferences; supporters expressed high hopes for passage.

The final text of amendments to the Peru FTA is available at http://waysandmeans.house.gov/MoreInfo.asp?section=19

"USTR, Congress settle on changes to trade deals," REUTERS, 25 June 2007; "U.S. reaches accord on Peru trade deal," ASSOCIATED PRESS, 25 June 2007; "Peru trade minister signs amendments for US free trade agreement," CCTV INTERNATIONAL, 26 June 2007.