* Obama says "strong trade deals" help to boost jobs
* White House to formally notify Congress soon on EU talks
* U.S. hopes to finish Trans-Pacific trade talks this year
By Doug Palmer
WASHINGTON, March 12 U.S. President Barack Obama
said on Tuesday that forging new trade deals with Europe and 10
countries in the Asia-Pacific region would be an important part
of his second-term agenda to spur economic growth and create
"What we know is that a lot of the growth, a lot of the new
jobs that we've seen during the course of this recovery have
been export driven," Obama said at a meeting of the President's
Export Council, which brings together corporate leaders and
members of Obama's Cabinet to discuss trade issues.
"The question now becomes how do we sustain this momentum.
Part of it is making sure we get in place strong trade deals."
The statement reflected how far Obama has moved on trade
since early in his administration, when he frustrated many
business leaders for not moving quickly to enact free-trade
pacts with Colombia, Panama and South Korea left over from
Republican President George W. Bush's administration.
Obama submitted those deals to Congress for approval more
than two and a half years into his first term and only after
making changes to shore up support among fellow Democrats.
A 'MOST AMBITIOUS AGENDA'
Now, his administration hopes to finish talks on the
proposed Trans-Pacific Partnership with 10 countries in the Asia
Pacific region by the end of the year and to start free-trade
talks with the 27-nation European Union by June.
"If we succeed ... we will have created free trade with
two-thirds of the world, both by GDP and by global trade," the
White House's international economic affairs adviser Michael
Froman told the group. "That will be perhaps the most ambitious
trade agenda we've seen in a while."
U.S. Trade Representative Ron Kirk, who is leaving his job
soon to return home to Dallas, said the White House would
formally notify Congress shortly of its plans to negotiate the
U.S.-EU trade deal, a procedural step that allows lawmakers to
weigh in before actual talks begin.
The talks are expected to be tough because of different
approaches to food safety and other regulatory issues that have
blocked exports of U.S. farm products and other items to Europe.
Obama said he believes Europe's economic slump has made it
"hungrier for a deal" than in the past and therefore more
willing to address U.S. concerns.
EU Trade Commissioner Karel De Gucht said on Tuesday he
would ask the 27 EU countries to approve his draft negotiating
mandate, which will set out how much room for maneuver he has in
his talks with Washington.
"I hope that member states will now quickly decide to open
negotiations so work can begin with the United States ahead of
the summer break", De Gucht told a news conference at the
European Parliament in Strasbourg, France.
The Commision also released a study by the London-based
think tank, the Center for Economic Policy Research, showing
that a free-trade pact could generate 119 billion euros ($155
billion) a year for the European Union and 95 billion euros a
year for the United States.
That translates on average to an extra 545 euros in
disposable income each year for a family of four in the EU and
$854 per family in the United States.
According to the study, carmakers would likely be the
biggest beneficiaries of an accord, because of the current high
tariffs and differences in regulation on both sides of the
Atlantic. Processed foods, chemicals and transport equipment
would also see increases in sales, the study found.
NO TRADE NOMINATIONS YET
Despite the emphasis Obama is putting on trade in his second
term, he has not yet nominated a replacement for Kirk, or for
former Commerce Secretary John Bryson who left the
administration last year because of a health problem.
Rebecca Blank has been serving as acting commerce secretary,
but she recently interviewed for the position of chancellor at
the University of Wisconsin-Madison, suggesting she may also
leave the administration soon.
Froman, who has been a driving force on trade policy from
his position at the White House, noted that the United States'
negotiating agenda leaves out many important emerging economies
like China, India, Brazil and South Africa.
"But we are very much prepared to work with them when
they're ready to come to the table and play the role that we
think they should play in the global economic system," he said.
The United States has criticized major emerging countries
for not making better offers to open up their markets in the
long-running Doha round of world trade talks.
Despite the impasse in the broader Doha negotiations, the
United States hopes World Trade Organization members can reach a
smaller "trade facilitation" deal to cut red tape in customs
procedures by the end of the year, Froman said.