Latin American WATCH

Kirk Renews Push for Panama Trade Deal By Joseph J. Schatz, CQ Staff After what he called “very productive” talks with Panama on labor and tax issues, U.S. Trade Representative Ron Kirk said Monday that the Obama administration is working toward getting a stalled free-trade agreement to Congress for implementation. The trade deal with Panama was negotiated during the administration of George W. Bush, but Democratic congressional leaders never brought it to the floor because they opposed some of its provisions. Bush-era trade deals with Colombia and South Korea also have not seen action by Congress. Kirk’s comments, part of an increasingly optimistic tone on the Panama deal from some leading Democrats, came as he pressed the business community to help stop the “name-calling” he said has hindered trade policy on Capitol Hill. “It won’t matter how hard we try to craft a new international trade agenda if squabbles here at home continue to bog it down,” Kirk said in a speech to the U.S. Chamber of Commerce. “Reflexive labeling of foes as either protectionists or anti-worker does little to foster the discussion of genuine concerns that need to be considered and addressed if we are going to have an opportunity to move forward successfully.” The stalled trade agreements, as well as trade liberalization efforts in general, face a tough road in Congress right now among lawmakers wary of mounting job losses and negative public attitudes toward free trade. Trade advocates “need to be a little more sensitive to the concerns of those members of Congress, in particular, whose districts have been hardest hit” by job losses, Kirk said. Moreover, he urged the business community to support administration efforts to overhaul the health care system and improve education as “necessary corollaries to a strong [trade] policy.” Those initiatives will help strengthen businesses and the overall economy, he said, helping the nation compete better internationally. While he would not give a timeline for the Panama deal, Kirk said he is working “furiously” to reach a conclusion. The Senate Finance Committee has scheduled a May 21 hearing on the deal. The deal was signed by the United States and Panama in late 2006. Efforts to approve the agreement stalled after Pedro Miguel Gonzalez, wanted in the United States for the murder of a U.S. soldier in 1992, was elected in 2007 as president of Panama’s National Assembly. Gonzalez recently stepped down, leading many proponents of the deal to predict smooth sailing. But Sander M. Levin, D-Mich., chairman of the House Ways and Means Trade Subcommittee, has raised concerns about Panamanian labor laws and banking secrecy laws, cautioning that those issues must be addressed before the deal is sent to Congress. Kirk said both countries are working to resolve the issues. Still, it is considered the easiest of the three stalled trade deals to get through Congress, in part because of its relatively small size. The agreement would repeal the vast majority of Panamanian tariffs on U.S. goods and services and would have relatively little impact on U.S. manufacturers.