Obama Submits FTAs to Congress for Approval

It’s taken half a decade, but three U.S. trade deals may finally gain approval in the near future. On Monday, the White House submitted pending free-trade agreements (FTAs) with Colombia, Panama, and South Korea to Congress. “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America,” U.S. President Barack Obama said in a statement coinciding with the FTAs. “We’ve worked hard to strengthen these agreements to get the best possible deal for American workers and businesses, and I call on Congress to pass them without delay.” The Oval Office made renewal of Trade Adjustment Agreement (TAA)—an aid program for U.S. workers affected by job outsourcing—a prerequisite for submission of the trade deals. The Senate passed TAA extension last month while the House added it to their docket on Monday. Legislators now have 90 days to vote on the trade agreements, although key congressmen indicated the FTAs could pass before the next recess later this month.

Given ongoing gloomy employment figures, the Obama administration has focused on how the trade agreements contribute to job creation. The Office of the U.S. Trade Representative estimates that, taken together, the FTAs could generate as much as $13 billion in new U.S. exports and that each $1 billion of new exports of U.S. goods supports 6,000 jobs. Trade-dependent states, such as California and Washington, will gain most from the deals’ approval, reports The Los Angeles Times, adding: “The pacts could help Obama meet his goal of doubling U.S. exports in five years and bring a rare bipartisan agreement in a divided Washington.”

Approval of the trade deals has been a long time coming, with the Colombia agreement signed in November 2006 and Panama and South Korea inked in June 2007. Each one came up against obstacles to passage, with unease about U.S. auto and beef exports dogging the South Korea deal and tax-transparency issues creating a stumbling block for the Panama pact. The U.S.-Colombia deal may be the most controversial due to ongoing concerns from human rights groups about violence against labor activists and impunity in prosecutions of those perpetrating the crimes. In the case of each FTA, the Obama administration undertook negotiations to win over trade-wary legislators, including an auto agreement with South Korea, a pact that requires Panama to improve its tax-transparency regime, and a labor-rights action plan with Colombia.

Now that the Obama administration has submitted the long-stalled FTAs, questions remain as to when they’ll come up for a congressional vote. In a statement yesterday, House Speaker John Boehner (R-OH) signaled fast movement from his chamber, saying: “We will quickly begin the required process to consider these bills and intend to vote on them consecutively and in tandem with Senate-passed TAA legislation.” Swift movement in the Senate may be less certain, given opposition to the deals from Senate Majority Leader Harry Reid (D-NV), although he indicated he expected to see the bills pass by October 24, reports The Hill. No doubt the Obama administration hopes passage comes sooner, in time for South Korean President Lee Myung Bak's official state visit on October 13.

Learn more:

• A Council of the Americas release applauds the submission of the FTAs to the U.S. Congress. 
• President Obama’s statement on submission of the three FTAs to Congress. 
• House Speaker John Boehner’s statement regarding submission of the FTAs. 
• The website of the Office of the U.S. Trade Representative offers a page collecting trade-agreement resources entitled “Next Steps on Pending Trade Pacts, Trade Adjustment Assistance.” 
• Text of U.S.-Colombia FTA.
• Text of U.S.-Panama FTA.
• Text of U.S.-South Korea FTA.