Schwab urges Democrats honor trade deal with Bush
WASHINGTON (Reuters) - U.S. Trade Representative Susan Schwab urged House of Representatives Speaker Nancy Pelosi and other Democrats to honor a deal with the White House and vote this month on a free trade agreement with Peru.
She also urged quick action on three other free trade agreements with Colombia, Panama and South Korea that the Bush administration hoped were set for eventual approval after an agreement reached two months ago in Pelosi's office.
In a July 6 letter to Pelosi released on Monday, Schwab stopped short of accusing Democrats of reneging on the May 10 deal. But she said Democrats appeared to be making new demands to delay action on the four trade pacts.
"The administration has successfully worked with our trading partners to complete the steps agreed to in the May 10 bipartisan agreement; now it is time for Congress to fulfill its side of the deal," Schwab said.
In a statement, Pelosi reiterated her support for the May 10 deal but quashed hope of action this month on the Peru pact. "We remain committed to consideration of the Peru and Panama FTAs (free trade agreements) this fall," Pelosi said.
President George W. Bush also pressed Congress to approve the three Latin American agreements, beginning this month with Peru.
"The best way to help defeat poverty is to encourage commerce and trade," Bush said in remarks at a White House conference on the Americas.
The Bush administration has hoped approval of the Peru agreement this month would create momentum for Congress to take up the other pacts in following months.
But Pelosi, House Ways and Means Committee Chairman Charles Rangel and other senior Democrats laid waste to that plan on June 29 when they said Peru and Panama must take additional action before Congress would consider the pacts.
They also said they could not support the trade pact with South Korea because of its auto provisions and said Colombia must show "concrete evidence" of reduced violence against trade union members before Congress would vote on that agreement.
U.S. DELEGATION PLANNED
The May 10 deal with the Democrats required the Bush administration to change all four trade agreements to incorporate stronger labor and environmental provisions.
A Democratic statement at the time said the deal cleared "the way for broad, bipartisan congressional support for the Peru and Panama FTAs (free trade agreements)," although Rangel and others warned the Colombia and South Korean agreements faced additional obstacles.
All four countries have agreed to the changes, but Democrats say they want Peru and Panama to actually implement the reforms before Congress votes on the pacts.
Rangel is leading a delegation to the countries in August to press for the necessary changes. Pelosi said on Monday Democrats were confident that trip would move the U.S. legislative process forward.
Schwab said the Democrats' demand was unprecedented because longstanding U.S. practice has been to ask countries to make changes in their domestic laws and regulations "when the free trade agreement goes into effect, not before."
Democrats took issue with that point, saying there were other examples of the U.S. government asking countries to change their laws prior to the negotiation or congressional consideration of a free trade agreement.
