Korea Trade Deal to Reach Congress in Weeks

WASHINGTON--U.S. Trade Representative Ron Kirk told lawmakers Wednesday President Barack Obama will send the South Korea free-trade agreement to Congress in the coming weeks, and hopes to finalize similar deals with Colombia and Panama as soon as several issues can be resolved.

The Obama administration faces a tight time frame for passage, if the Korea deal is to take effect before a pact between South Korea and the European Union comes into force July 1. If the deal passes after that date it could cause U.S. manufacturers to lose out to European competitors.

"The president intends to submit the U.S.-Korea trade agreement to Congress in the next few weeks and looks forward to working with you to secure its approval this spring," Mr. Kirk said in prepared opening remarks to the House Ways and Means Committee, his first testimony since Republicans took control of the chamber in January.

The official urged Congress to pass the reworked South Korea trade agreement "without delay," but Mr. Kirk resisted Republican calls to immediately send up the Colombia and Panama pacts as well.

Mr. Kirk said the president has directed him to "immediately intensify engagement" with the two countries to resolve outstanding issues as soon as possible. A fact-finding mission will be sent to Colombia next week, though Mr. Kirk wasn't sure whether he would participate.

Mr. Kirk said Colombia and Panama must be "prepared to take additional meaningful actions" on improving labor standards and other issues.

Supporters of the Colombia pact are pressing for passage within six months, but administration officials won't commit to that time frame. They worry that organized labor, which is traditionally highly skeptical of trade deals, may choose the Colombia deal to mount a campaign of opposition. Union leaders have condemned violence against labor organizers in Colombia, which Bogotá says it has worked to alleviate.

House Ways and Means Chairman Dave Camp (R., Mich.) expressed his exasperation with the lack of progress, repeating a call he made earlier Wednesday in a speech for all three trade agreements to be submitted to Congress by mid-year.

Business groups, including the Chamber of Commerce and National Association of Manufacturers, also sent out statements during the hearing calling for the administration to send up the Colombia and Panama deals without further negotiation.

Colombian Ambassador Gabriel Silva welcomed the pledge to move forward on the trade deal, but rejected the idea that little progress has been made on human and labor rights in the country.

"It is convenient to leverage old arguments based on Colombia's past," Mr. Silva said in a statement, calling for a "fresh assessment" by the administration.

Mr, Kirk also addressed prospects for a trade deal with Russia, saying he would work with lawmakers this year to grant Russia Permanent Normal Trade Relations, as part of the country's bid to join the World Trade Organization.

While China didn't dominate discussions as it typically does in trade hearings, Mr. Kirk said his department lacks the resources to pursue a robust enforcement agenda against China and other countries. He said his office is working with other agencies to try to address the issue.

Sander Levin, (D., Mich.), the top Democrat on the Ways and Means committee, said he hopes Republicans would support additional funding in the upcoming budget to address China's "trade-distorting policies."

Mr. Levin also called for the administration to take action on China's undervalued yuan by labeling the country as a currency manipulator, imposing retaliatory duties and filing a case with the WTO. The Treasury Department last week once again declined to put the manipulator label on China.

When asked about China's currency policy, Mr. Kirk deferred to Treasury in that area. But he said president Obama always addresses the need to allow the yuan to become more flexible in meetings with President Hu Jintao.

He also said concerns about China's discriminatory innovation policies and intellectual-property rights "can be just as important as addressing the currency issue."

Mr. Kirk also urged Congress to renew trade measures that are set to expire at the end of the week, including a program that allows duty-free access for imports from Colombia and Ecuador as well as a training program for workers displaced by trade.

Feb 9^th, 2011

Source: online.wsj.com