Bush tries to build support for Latam trade deals

By Caren Bohan

MIAMI (Reuters) - President George W. Bush urged Congress on Friday to approve free-trade agreements with Latin American countries "as soon as possible," saying failure to do so would diminish U.S. leadership in the hemisphere.

Approval of the trade deals would help U.S. exports and "counter the false populism promoted by some nations in the hemisphere," Bush said, apparently referring to Venezuelan President Hugo Chavez who has positioned himself as a counterweight to the United States in Latin America.

Bush is seeking ratification for pacts with Peru, Panama and Colombia from Democrats who captured Congress in last year's elections and have shown some uneasiness about the president's free-trade agenda.

"Collectively, these three trade agreements have the potential to boost our economy and strengthen our allies and spread prosperity throughout our region," Bush told a conference on trade in the Americas.

"I urge congressional leaders to pass these three Latin American agreements as soon as possible."

Although the deal with Peru appears likely to be approved soon, the two other agreements face significant obstacles.

Democrats in the U.S. House of Representatives on Friday unveiled draft legislation for an expansion of federal trade adjustment assistance to help retrain workers who lose their job because of foreign competition.

In his speech, Bush said he was a "big believer" in the program. It's unclear whether he'll agree to the billions of dollars of new funding that Democrats want, but that could be the price needed to win approval of the trade agreements.