U.S. Trade Representative Susan Schwab |
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Washington – The Bush administration’s
trade agenda will remain basically unchanged as the Democrats
take control of the Congress in January 2007 for the first
time in 12 years, U.S. Trade Representative Susan Schwab said
November 28.
The administration and key Democratic and
Republican leaders in Congress can work together, building
on shared trade principles and objectives, she told business
representatives at a conference organized by the U.S. Chamber
of Commerce, the largest U.S. business lobbying group based
in Washington. It was her first major speech since the U.S.
midterm elections in November.
Schwab countered “conventional wisdom”
that the takeover of both chambers of Congress by Democrats
will force the administration to change trade priorities.
Citing multilateral and bilateral trade agreements that
received bipartisan support in the past, she said these
priorities go beyond party affiliations.
“Bipartisanship on trade should not
be a historical concept but a driving force for the future,”
she said.
Democrats have been perceived by the media
and some analysts as less trade-friendly than the Republicans
because of their advocacy on behalf of U.S. workers displaced
or threatened by globalization and their insistence on strong
labor and environmental protection provisions in U.S. free-trade
agreements.
Schwab said that despite differences on
the labor and environmental issues, many Republicans and
Democrats share the view that trade liberalization on its
own promotes higher standards and protections in both areas.
Nevertheless, she added, more dialogue and consultations
with Congress may be necessary on these issues.
The administration and Congress must address
needs of displaced workers without hampering efforts to
expand trade, she said, adding that the widespread and deep
economic hardships caused by any retreat from trade liberalization
would “dwarf the occasional dislocation that comes
from economic engagement.”
Schwab acknowledged that some legislators
“in the extremes of both parties” espouse protectionism.
“The good news is that the leaders
and people in responsible positions in both parties know
better,” she said.
Trade experts who spoke at the conference
generally shared Schwab’s optimism.
Grant Aldonas said that in January 2007
and in the subsequent months Democratic leaders of key committees
in both chambers are likely to act on issues that are important
to their constituencies such as minimum wage and health
care. He suggested that progress in these areas could create
an atmosphere conducive to trade deals in general even though
initially there might be little progress on specific trade
issues.
Aldonas, who served as under secretary of
commerce from 2001 to 2005, is currently associated with
the Center for Strategic and International Studies, a Washington-based
policy research group.
Cal Dooley, a former Democratic congressman
from California who currently is president of the Food Products
Association, said the Democrats might want to advance a
trade program as part of a broader competitiveness agenda
that would include reforming the Trade Adjustment Assistance
(TAA) program.
TAA provides a variety of benefits and re-employment
services to workers who lose their jobs as a result of increased
foreign competition.
DOHA ROUND AS NUMBER 1 ISSUE
Schwab cited World Trade Organization (WTO)
talks as the Number 1 issue on the administration’s
agenda. She said the United States must “speak with
one voice” on the WTO negotiations in the coming months.
Officially known as the Doha Development
Agenda, these negotiations collapsed in July as countries
failed to narrow their differences on agricultural issues.
(See related
article.)
“We walked away from a bad deal in
July; if necessary we will do so again – but we cannot
let a strong, potential Doha deal slip through our fingers,”
she said.
Former U.S. Trade Representative Clayton
Yeutter agreed with Schwab’s view that the Doha round
is not doomed. He said, however, it is not likely to succeed
if it drags on until 2009-2010, positions of the United
States and the European Union do not get closer and other
countries do not appreciate the benefits they can derive
from its successful outcome.
Developing countries in particular, Yeutter
said, would make a huge mistake by giving up on the Doha
round because what already has been agreed – the elimination
of farm export subsidies in particular – would give
them a great advantage.
Speaking on the same day in London, U.S.
Treasury Secretary Henry Paulson said he and his British
counterpart, Chancellor of the Exchequer Gordon Brown, believe
a Doha agreement is within reach.
He said the elections have not weakened
U.S. commitment to achieving a successful Doha agreement
and that Schwab and other U.S. officials are conduction
quiet diplomacy “to explore some ‘what ifs’
and test new ideas.”
The full
text (PDF, 9 pages) of Schwab’s prepared remarks
is available on the Web site of the Office of the U.S. Trade
Representative. The full
text of Paulson’s remarks are available on the
Treasury Department’s Web site.
For more information on U.S. policies see
USA
and the WTO and 2006
Midterm Elections.
Andrzej Zwaniecki
USINFO Staff Writer
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