White House Presses for Korea Trade Pact

U.S. Trade Representative Ron Kirk on Monday appealed to congressional leaders to begin work "without delay" toward ratifying a free-trade deal with South Korea, even as Republican leaders continued to press to link such action with movement on trade pacts with Colombia and Panama.

In a letter sent Monday to leaders of the House Ways and Means and Senate Finance committees, Mr. Kirk asked Congress to begin a process that would lead to a vote on the Korea pact this spring. His letter didn't address pending trade-opening deals with Colombia and Panama, which prompted criticism from House Ways and Means Chairman Dave Camp (R., Mich.).

"We really need all three agreements to have a specific path forward," Mr. Camp said. All three, he said, "will help support jobs here in the United States—250,000 jobs, using the president's own measure." Mr. Camp said the administration hasn't provided Congress with a time frame for reviving the trade deals with Colombia and Panama.

Republican lawmakers don't oppose the Korea trade deal, but want to leverage their support for it to push through the accords with Colombia and Panama.

Democrats say they are reluctant to back the Colombia deal without revisions that address reports of violence against trade-union organizers there. Trade officials say the Panama deal awaits passage of legislation by that country's government that would change its tax code and end its reputation as a tax haven.

Administration trade officials say they working on revising both Latin America pacts this year, and will send them to Congress for approval immediately thereafter.

Mr. Kirk is expected to outline the next steps on the Colombia and Panama agreements when he appears Wednesday before the Senate Finance Committee, which has jurisdiction over trade pacts in that chamber.

The Korea pact is a high priority for President Barack Obama, who has pledged to double U.S. exports by the end of 2014. The administration made revisions to the agreement that favor U.S. auto makers, changes expected to garner critical Democratic support for the pact.

Rep. Sander Levin of Michigan, the top Democrat on Ways and Means, said Republicans "can't hold up Korea but they threaten to anyway."

The trade agreements need to pass the House and the Senate and be signed by the president to take effect.

The Colombia and Panama trade deals have languished since they were negotiated by the administration of George W. Bush.

March 09^th, 2011

Source: The Wall Street Journal