Paulson urges OK on Colombia and Panama trade pacts

By David Lawder

MIAMI (Reuters) - U.S. Treasury Secretary Henry Paulson on Monday urged Congress to swiftly approve free trade pacts for Colombia and Panama, saying they would reinforce democracy in Latin America.

His renewed call at the Inter-American Development Bank Meeting here comes as President George W. Bush said he would formally send the long-delayed Colombia free trade deal to Congress for a ratification vote.

"I call on the U.S. Congress to show support for the Colombian people and provide greater hope for their future by passing the Colombian trade agreement without further delay," Paulson said.

"Immediately after approving the Colombia FTA, Congress should turn to the pending agreement with Panama to further build the existing trade relationship with another ally," he said.

Bush's decision to submit the Colombia deal to Congress marks a new offensive to persuade lawmakers to overlook objections over potential U.S. job losses and ratify the agreement, which would cut tariffs on imported goods from both countries.

The Bush administration has been trying to persuade House of Representatives Speaker Nancy Pelosi to allow House Democrats to vote freely on the issue, but has had little success in reaching a deal.

"While we will continue to work closely with Congress, the need for this agreement is too urgent, the stakes for our national security are too high, to allow this year to end without a vote," Bush said in before signing a letter to transmit the agreement to Congress.

The action gives Congress 90 days to complete its consideration of the bill.

Paulson is scheduled to appear in a news conference in Miami on Monday at 2 p.m. EDT (1800 GMT) with Colombian Finance Minister Oscar Zuluaga.

Paulson said Colombia has succeeded in transforming itself into one of Latin America's strongest and most stable democracies, with poverty and unemployment near 10-year lows.

Paulson told IDB delegates the Bush administration was committed to fighting for the benefits of free trade agreements and needed to push back on a "rising tide of protectionism" throughout the world.

"What we need to do is figure out how to deal with the job losses that come from trade and make sure that we do not turn isolationist," he said.

LATIN AMERICA "RESILIENT"

Paulson also said he believes the United States will return to robust growth that benefits the Americas and said Latin American economies were holding up better than expected amid global financial turmoil.

"U.S. long-run economic fundamentals remain sound, and the good news is that Latin American economies and financial markets have proven more resilient to the recent global financial turmoil than many might have expected," Paulson said.