Bloomberg News

House Committee Advances Trade Pacts Reached More Four Years Ago

October 05, 2011

Oct. 5 (Bloomberg) -- The House Ways and Means Committee voted to advance U.S. free-trade agreements with South Korea, Colombia and Panama to the full House, more than four years after the deals were reached.

The Colombia accord advanced over objections from Democrats including Representative Sander Levin of Michigan who said legislation on the pact submitted by President Barack Obama does too little to protect that nation’s workers.

“For the past five years, we have been working towards this day,” Representative Dave Camp, a Michigan Republican who leads the committee and voted for the agreements, said at a hearing today. “These agreements enjoy broad bipartisan, bicameral support, and are the product of a lot of hard work from all sides. I would also like to extend my appreciation to the president for sending these trade agreements to Congress.”

Camp said the bills will be considered on the House floor next week. The Colombia deal was approved 24-12, South Korea was adopted 31-5 and Panama was approved 32-3.

The deals, reached under President George W. Bush and revised by Obama, had been stymied in a stalemate with Republicans over aid for workers who lose their jobs to foreign competition. Obama submitted legislation on Oct. 3 after House Speaker John Boehner, an Ohio Republican, said he would consider the worker assistance in tandem with the trade deals.

Levin said he opposed the Colombia agreement because labor- rights assurances Obama won from the South American nation in a so-called Action Plan aren’t in the bill. Levin said he voted for the South Korea pact after Obama negotiated terms for auto tariffs and the Panama deal after Obama reached agreement on exchanging tax information.

‘Flaws Magnified’

“There remain troubling problems with how Colombia is addressing key elements related to the Action Plan,” Levin said. “The flaws are magnified by the failure to incorporate the Action Plan in the implementation bill as a result of the adamant refusal of Republicans, and the Obama administration’s acquiescence to that refusal.”

Richard Trumka, president of the AFL-CIO, the nation’s largest federation of labor unions and a frequent Democratic ally, has urged lawmakers to oppose the Colombia deal, saying the nation remains the world’s most dangerous for workers. Fifty-one Colombian union members were killed last year, up from 47 in 2009, according to the National Union School, a labor- rights organization based in Medellin, Colombia.

The three trade pacts are “lousy” deals that will destroy 159,000 jobs by encouraging companies to send work overseas, Trumka said yesterday in a Washington speech. The U.S. Chamber of Commerce says the trade agreements will prevent the loss of 380,000 jobs.

Export Estimates

The South Korea deal, the biggest since the North American Free Trade Agreement, would boost U.S. exports by as much as $10.9 billion in the first year in which it’s in full effect, according to the U.S. International Trade Commission. The accord with Colombia would increase exports by as much as $1.1 billion a year.

Not all Democrats opposed the Colombia bill. Representative Ron Kind of Wisconsin voted for it, saying he didn’t share Levin’s concern that leaving out Colombia’s labor-rights assurances means that nation wouldn’t honor the pledge. The Obama administration has taken sufficient steps to ensure the improvement of security for Colombian workers.

“The longer we’re on the sidelines, the greater the market share we’re going to be losing in these countries,” he said.

The bills are H.R. 3078 for Colombia, H.R. 3079 for Panama and H.R. 3080 for South Korea.

--Editors: Steve Geimann, Larry Liebert

To contact the reporter on this story: Eric Martin in Washington at emartin21@bloomberg.net

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net


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