Senators Say 3 FTAs Won't Pass Unless Packaged, USTR Calls for GSP Renewal
On March 9, 2011, U.S. Trade Representative Kirk testified before the Senate Finance Committee at a hearing on the President’s 2011 trade agenda.
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Administration Wants Congress to Vote on KORUS this Spring
In his written testimony, USTR Kirk says that the President is requesting that Congress vote on the U.S.-Korea free trade agreement (KORUS FTA) this spring. USTR Kirk also reiterated his announcement from earlier this week that this FTA is ready and the Administration is ready to begin technical discussions with Congress on the draft implementing legislation and associated documents.
(See ITT’s Online Archives or 03/08/11 news, 11030824, for related BP summary.)
Committee Leaders Urge Agreement with Korea on Beef Access
Senate Finance Committee Chairman Baucus (D) pressed the USTR to secure an agreement from Korea to consult with the U.S. on a path to full market access for U.S. beef in the future, consistent with international scientific guidelines. Ranking Member Hatch (R) also said that there needs to be more progress on beef access.
(See ITT’s Online Archives or 02/17/11 news, 11021720, for BP summary of Baucus’ previous comments on the KORUS FTA beef issue.)
Chairman Urges Quick Resolution of Issues, Says FTAs Need to be “Packaged”
In his opening statement, Baucus urged the Administration to quickly resolve outstanding issues and send the Colombia, Panama, and Korea FTAs to Congress. According to Baucus, none of the pending FTAs are going to pass unless they are “packaged,” either as one package or locked so closely together that it’s clear they will all be acted upon.
Ranking Member Says All Three FTAs Must Move at Same Time
Although Ranking Member Hatch (R) supports the KORUS FTA and wants to move on it as soon as possible, in his opening statement he says he doubts the President will act on the Colombia and Panama FTAs if they do not move the KORUS FTA. Hatch says that if the President sends the KORUS FTA to Congress without the Colombia or Panama FTAs, he will do everything he can to make sure that the Colombia and Panama FTAs are considered at the same time as the KORUS FTA.
USTR Reiterates 2011 Timetable for Colombia and Panama FTAs
The USTR explains that the U.S. and Panama have made progress on the Panama FTA and are on track to resolve pending issues in 2011. The USTR states that the Administration will send the FTA to Congress once that is complete.
The USTR further states that U.S. and Colombia are working to assess what can be done on FTA issues such as labor rights and violence against labor leaders. The USTR commits to addressing such concerns in 2011 and to prepare the agreement for Congressional consideration immediately thereafter.
(The Committee had asked the USTR to provide information on the steps that Colombia and Panama should take and a timetable for moving the FTAs at the hearing. See ITT’s Online Archives or 03/03/11 news, 11030309, for related BP summary.
See ITT’s Online Archives or 02/10/11 news, 11021031, for BP summary of USTR’s hearing testimony in which he outlined a similar timetable.)
USTR Continues to Urge Renewal of GSP and ATPA for Longest Possible Time
USTR Kirk continues to state that the Generalized System of Preferences (GSP) program and Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) merit renewal for the longest period possible.
(GSP for most beneficiary countries (A, A+, and A*), i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, expired on December 31, 2010. ATPA/ATPDEA expired on February 12, 2011.)
Administration to Work to Address African Trade and AGOA Expiration Dates
In his written testimony, the USTR noted that as the U.S. faces the expiration of the African Growth and Opportunity Act’s (AGOA’s) third country fabric provisions in 2012 and of the broader AGOA in 2015, he will seek to work with Congress to determine which initiatives, current and future, can best boost U.S.-sub-Saharan Africa trade.
Russia’s Accession to the WTO
The USTR notes in his written testimony that the U.S. will seek to work with Congress this year to grant Russia Permanent Normal Trade relations so that U.S. firms can fully benefit when Russia joins the World Trade Organization (WTO). Some of the Committee Members complained that the Administration’s concerns with Colombia’s labor practices but not with labor conditions in Russia is a “double standard.”
Chairman and Others Urge Administration Action on IPR and Other China Issues
During the hearing, Chairman Baucus and other Senators urged the USTR to map a course for dealing with China trade issues such as currency and intellectual property rights protection.
Webcast of hearing and links to written statements and testimony available here