MercoPress. South Atlantic News Agency

US/Peru trade pact vote signals change in Democrats stance

The free trade pact between the United States and Peru won bipartisan support in a crucial Congressional committee this week signaling that some opposition Democrats will be receptive to new trade deals as long as they call on other nations to adhere to international labor and environmental standards.

The voice vote in the Lower House Ways and Means Committee clears the way for approval of the Peru deal by the US Congress this fall, with most Republicans and perhaps sufficient Democrats supporting it, according to Congressional analysts. The Senate Finance Committee approved the treaty last Friday 18 to 3. The vote was a victory for the President Bush administration and Representative Charles B. Rangel, the New York Democrat who as chairman of the Ways and Means committee argued, against the opposition of many Democrats, that well-devised trade deals can benefit US workers and the economy. The bipartisan votes also reflect the shift in sentiments among Democrats, traditionally wary of free trade deals, since Democratic leaders last May reached a deal with the Bush administration assuring that worker rights and environmental standards will be central parts of all future trade deals. Chairman Rangel traveled to Peru in August to win assurances from the Peruvian leadership that they would fully carry out the labor and environmental clauses of the trade deal, which were written in cooperation with the US powerful unions' federation AFL-CIO. Along with Peru, Congress could act this year on a bilateral agreement with Panama. Other pending deals with Colombia and South Korea are more problematic because of concerns over Colombia's human rights record and South Korea's restrictions on US auto imports. The Ways and Means vote, said US Trade Representative Susan Schwab, shows that the May agreement ''created a path that is leading to positive results.'' In consenting to move the Peru deal with Rangel, House Speaker Nancy Pelosi of California and Senator Harry Reid of Nevada, the Senate majority leader, reflected the internal pressure inside the Democratic caucus since the Clinton presidency. While many rank-and-file Democrats fear that trade deals erode American jobs, Democratic leaders have developed close ties with Wall Street and with many high technology and industrial companies that rely on trade agreements to expand their markets overseas. "This is another indication that the Bush administration and Congress can find a way to do the right thing for the American people, the U.S. economy and our key allies in the region," said Susan C. Schwab, the United States trade representative. The Bush administration and Democrats are also fearful of the advancing influence (and oil funds) from Venezuela's Hugo Chavez and his nationalization policies as well as his close links with what Washington defines as "rogue" states. Opponents of the administration's trade policies said that they would continue to battle the Peru deal and other pending trade agreements would have a much tougher time because of particular concerns with each of them. A Panama deal may have the best chance of passage. But Democratic leaders said that the Colombia deal cannot be considered until Colombia does more to end human rights abuses, especially against workers trying to organize. And they said South Korea must take further steps to open its market to American beef, autos and auto parts. While its symbolic value is high for the US the Peru agreement has little economic significance since the total two-way trade between Peru and the United States was 8.8 billion US dollars in 2006, less than half a percent of total US foreign trade. The Bush administration argues that the deal grants Peru continued access to US markets while leading to duty-free access overseas for US farm products, construction equipment, auto parts and high-technology goods.