MercoPress. South Atlantic News Agency

No “fast track” this year

US Congress Democrat Senate leader Tom Daschle confirmed this week in Washington that legislation giving the Executive power to negotiate new trade deals without the threat of congressional amendments, (“fast track”) will not be approved this year.

The delay in the "fast track" means a blow for Mercosur, but particularly for Chile that was expecting to reach a bilateral agreement with the United States to be announced before 2001 was over. "Fast track will be considered some time next year", said Senator Daschle. The initiative has been approved in the House of Representatives Means and Procedure Committee but still does not have sufficient votes for its consideration in the full House. In spite of a compromise hammered earlier this year, Republican House leaders have gained few Democratic votes and are having trouble persuading their own members. There are growing demands in the US Congress to protect industries and workers hurt by previous rounds of liberalisation.

Senator Daschle however made a positive announcement for several Latinamerican countries that are annually irritated by the US State Department Country Certification regarding combating the drug trade. "I think we're going to be able to eliminate the concept of drug combat certification", said Senator Daschle, following an agreement in both Houses. Mexico and the Andean countries are particularly angry and frustrated with the country certification process.

US Congress reacts to WTO agreement

Although US Trade Representative Robert Zoellick has won praise internationally for several concessions that helped the launching of a new round of world trade talks, the US Congress is not so encouraged and anticipates a strong reaction.

Political observers believe in Washington it's going to be particularly difficult for the Bush administration to rally support for further trade liberalization. "Mr. Zoellick gave in Qatar some concessions overriding the advice of 400 members of the House of Representatives and agreed to negotiations on anti dumping rule, and we're extremely troubled about it", said Max Baucus a key Senate Democrat. Besides, concessions regarding textiles, (increase in quotas and reduction of high tariffs), could have an impact for US textile state legislators. Mr. Zoellick had an adverse task in Qatar: launching a new round of world trade talks and simultaneously helping to rebuild congressional support for further trade liberalization. But ev