U.S., Colombia agree to changes to free trade deal

WASHINGTON (Reuters) - The United States and Colombia have agreed on new labor and environmental rules for a bilateral trade agreement, a step the Bush administration hopes will bring the deal closer to congressional approval.

The changes reflect demands made by Democrats after they won control of Congress in last year's elections for stronger labor and environmental provisions in trade pacts.

The Bush administration struck a deal with congressional Democrats in House Speaker Nancy Pelosi's office May 10, and the two sides finalized the text just days ago.

The new provisions, which bind the United States and its free trade partners to abide by core international labor standards and certain international environmental agreements, have already been inserted into a trade pact with Panama that is to be signed later on Thursday.

Peru's legislature on Wednesday approved the same set of changes to an agreement it has already signed with the United States. U.S. negotiators also hope to persuade South Korea to incorporate the changes into a pact it is signing with the United States on Saturday.

"We ... look forward to working with Congress on the passage of all four of these important trade agreements," U.S. Trade Representative Susan Schwab said in a statement.

However, Democrats have raised additional concerns about the Colombia agreement because of that country's long history of violence against trade union members.

A paramilitary scandal ensnaring members of Colombian President Alvaro Uribe's party has also thrown a shadow over the free trade pact.

Some supporters of the Colombia agreement worry that those concerns could delay congressional action until after the November 2008 U.S. elections.

Many opponents argue at least that much time is needed for Colombia to demonstrate its commitment to reducing violence and bringing murderers of trade unionists to justice.

The Bush administration is pushing for approval of the Peru agreement by the end of the July, but Democrats have not publicly committed to that.