US will seek fast renewal of trade authority: Portman
Reuters
US will seek fast renewal of trade authority: Portman
Wed Mar 22, 2006
By Doug Palmer and Sophie Walker
WASHINGTON (Reuters) - The top U.S. trade official said on Wednesday he would push for quick renewal of trade promotion authority, which allows the White House to negotiate agreements that Congress must approve or reject but cannot change.
The legislation runs out mid-2007, putting pressure on World Trade Organization members to agree by the end of 2006 on a much-delayed pact to lower global trade barriers. An extension would allow talks to continue past then.
"Our trade promotion authority expires in July 2007. That means we really need to complete the WTO process this year to have the legislation go forth to Congress in time to reach that deadline," Portman said at an agricultural industry lunch.
"Would we like to see an immediate renewal of TPA? Of course. And as your trade representative and advocate of course that will be something I will be pushing for," Portman said.
But there is a big risk it won’t be renewed so WTO members need to remain focused on completing the talks by the end of the year, Portman said.
As the chief U.S. trade negotiator, Portman wants to keep pressure on WTO members to reach a deal, but be able to pursue other initiatives if those talks fail.
Expiration of trade promotion authority could not only bring world trade talks to a halt but the U.S. plan to negotiate bilateral free trade agreements, like ones that are soon to be started with South Korea and Malaysia.
The last time the negotiating authority lapsed in 1994, it took the White House eight years to win it back.
With Democrats poised to make gains in this year’s congressional elections and U.S. President George W. Bush’s popularity at a low ebb, the White House is expected to again face a tough battle to win TPA renewal.
Senate Finance Committee Chairman Charles Grassley, an Iowa Republican who is traveling this week in South America, said he underscored that point on Wednesday in a meeting with Brazilian Foreign Minister Celso Amorim.
"I also emphasized ... that it’s time for our trading partners in the world community to step up and make meaningful offers in agriculture market access, industrial market access and services. If they don’t, I question if we’ll be able to break the WTO logjam," Grassley said in a statement.
Trade promotion authority is viewed as vital for trade talks because without it Congress could change any deal the White House negotiates, potentially unraveling it.
At the same time, the prospect — however unlikely — that the White House would win renewal next year could WTO members yet another excuse to avoid making the hard decisions to reach a final agreement by the end of 2006.
In the short term, WTO members face an April 30 deadline to agree on broad formulas for cutting tariffs on agricultural and manufactured goods. Countries cannot miss that, as they have several times in the past, and stay on track to reach a final deal by the end of the year, Portman said.
"This means we are now at a crucial point," he said.
Portman told reporters he spoke by phone on Wednesday with several trade ministers, including EU Trade Commissioner Peter Mandelson. Portman expressed regret that a few members of the EU have prevented Mandelson from offering deeper cuts on farm tariffs needed to move the talks forward.
