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White House calls for extension of special trade powers

Friday, June 29th 2007 - 21:00 UTC
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The White House has urged Congress to renew President George W Bush's ability to agree trade deals without Congress interference. Its comments come ahead of a 30 June deadline that ends Congress' current inability to seek to amend any global trade deals that the President agrees.

The Trade Promotion Authority (TPA) rule is designed to prevent Congress undoing any deal the White House makes. Analysts say that without another TPA, current global trade talks will fail. The current round of World Trade Organization (WTO) talks started in November 2001 but has been beset by problems and delays. They have repeatedly broken down due to disputes between the US and the European Union on one side, and developing nations led by Brazil and India on the other. Agriculture has proven to be the main stumbling block, with Brazil and India accusing the US and EU of not making enough concessions on reducing their agricultural protectionism. Commentators say that without a new TPA, any future deal that is agreed by President Bush could simply be undone in Congress. US Trade Representative Susan Schwab called on Congress to continue its recent spirit of bipartisanship and agree to a fresh TPA. Her comments come as the White House aims to secure a new free trade deal with South Korea before the 30 June deadline.

Categories: Economy, United States.

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