March 13, 2008

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US-Colombia Trade Deal Faces Uncertainty

March 11, 2008
By James Politi and Daniel Dombey in Washington

The US administration is facing a key decision on whether to submit a contentious free trade agreement with Colombia for approval by Congress, in a move that could dramatically ratchet up the debate over US trade policy. Over the past 10 days, administration officials and congressional staffers have intensified their negotiations over the terms of a deal that would bring the Colombian agreement to a vote with the support of Democratic ­lawmakers, who hold the majority. But people close to the talks say that unless the considerable distance between the sides is bridged in the coming weeks, the White House is likely to pursue what it has claimed would be its least preferred option – forcing Congress to consider the deal without having guaranteed bipartisan support.

A high-profile standoff between the administration and Congress over trade would come at a time when US trade policy is being hotly debated in the race for the presidency, with both Democratic candidates, Barack Obama and Hillary Clinton, signaling that they would seek to renegotiate the North American Free Trade Agreement. The Colombia FTA was signed two years ago under “fast-track” rules, which allow the administration the option of forcing lawmakers to consider the deal within a maximum of 90 session days.
Many Democrats are opposed on the grounds that the Colombian government has not done enough to curb violence against union leaders in its fight against the Farc, the rebel group. But some insiders believe their support could be gained if the administration agreed to a wide expansion of federal aid to workers displaced by trade – or “trade adjustment assistance”. Colombian officials argue that one of the principal benefits of the treaty would be to attract long-term investment to the country and so contribute to its national security by bolstering the foundations of its economy. Colombian exporters already have broad access to US markets through the Andean preference programme.

People close to the discussions say the the legislative calendar requires the White House to submit the Colombia deal to Congress within the next month if it wants to run out the 90-day clock on the agreement and ensure a vote in both the House and the Senate this year. Chris Padilla, the senior international trade official at the commerce department, told the Financial Times: “We don’t have months. We want to get this agreement the vote that it deserves in Congress.” “Our goal has always been to work with Congress,” said Sean Spicer, assistant US trade representative. “The statute permits us to send [the Colombia FTA to ­Congress] any time.” But a spokesman for Charles Rangel, chairman of the House ways and means committee, which oversees trade policy, warned: “Submitting the FTA without consultation or laying the proper groundwork on the Hill would do more harm than good.” Luis Guillermo Plata, Colombia’s trade minister, is due to travel to Washington today, to make the case for ratification to US members of Congress.

In an unusual departure for a Pentagon chief, last week Robert Gates, US defence secretary, also lobbied members of Congress for the trade deal, according to congressional aides. The national security argument has gained prominence in recent days, with the uptick in tensions between Colombia and its neighbours Ecuador and Venezuela after Colombian forces killed a leader of the rebel Farc in Ecuadorian ­territory. While Álvaro Uribe, Colombia’s president, is George W. Bush’s closest ally in South America, Hugo Chávez, Venezuela’s president, is the US administration’s bête noire in the region.

Financial Times


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