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"time out" from trade may have begun

Posted: Tuesday, April 29, 2008, 17:49 (BST)
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TRADE POLITICS

Hoping to move the agreements, Bush submitted the Colombia pact to Congress for a straight up-or-down vote within 90 days under under White House trade promotion authority.

But Pelosi instead pushed through a vote indefinitely delaying action on the pact - in the process destroying a 34-year-old procedure both Republican and Democrat presidents have used to get trade deals through Congress.

Bush has tried to pressure Pelosi by accusing her of "killing" an agreement with a close U.S. ally. Pelosi responded by insisting the White House and Congress agree on a new U.S. aid package before lawmakers vote on the Colombia pact.

Many doubt a deal can be struck, but others see some signs of progress on the trade pacts. The United States and South Korea recently resolved a 4-year-old beef trade spat, removing a major obstacle to approval of the Korea trade deal.

Also, after the blowup over Colombia, the Bush administration has shown more interest in meeting Democratic demands for an expanded assistance program for workers who have lost their jobs because of trade, a congressional aide said.

Some even think Obama and Clinton would be relieved to see the Colombia and Korea agreements passed, so they don't have to deal with them next year if they become president and can start off with a clean slate on trade.

A former Bush administration official said he was "pretty optimistic" Congress would approve the Colombia accord before the November congressional and presidential elections.

"I don't think the Democrats will want to go into that election with this lamentable position they've staked out on Colombia, for which they're being excoriated" by many editorial boards and other commentators, said Grant Aldonas, a former under secretary of commerce for international trade.

However, Aldonas said he was skeptical there would be a long-awaited deal in world trade talks to tear down barriers to trade in agriculture, manufactured goods and services.

"To be blunt, this thing has been dead for some time and investing a lot more effort in it strikes me as futile," Aldonas said. "My own impression is what's being sold as progress (in the talks) doesn't really represent progress."

Still, many in the U.S. business community hold out hope for the Doha round talks, even if they have ratcheted back what they think could be accomplished this year.

The Bush administration may not be able to broker a final deal, but it could get close enough for the next president to get it done, said Doug Goudie, director of international trade policy for the National Association of Manufacturers.



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