Milwaukee Journal Sentinel: Congress unifies for trade deals

Congress resoundingly approved long-stalled trade agreements with South Korea, Colombia and Panama late Wednesday, authorizing the most significant expansion of trade relations in nearly two decades.

In rapid succession, the House and Senate voted on the three trade pacts, which the administration says could boost exports by $13 billion and support tens of thousands of American jobs. None of the votes was close, despite opposition from labor groups and other critics of free trade agreements who say they result in job losses and ignore labor rights problems in the partner countries.

The House votes were 278-151 for South Korea, 300-129 for Panama and 262-167 for Colombia. The Senate votes were 83-15 for South Korea, 77-22 for Panama and 66-33 for Colombia.

In Wisconsin's House delegation, Democratic Reps. Tammy Baldwin and Gwen Moore voted against all three pacts. Wisconsin Sen. Ron Johnson, a Republican, voted for all three pacts, while Wisconsin Sen. Herb Kohl, a Democrat, voted for the South Korea and Panama pacts but against the Colombia deal.

The votes ended a four-year drought in the forming of new trade partnerships and gave the White House and Capitol Hill the opportunity to show they can work together to stimulate the economy and put people back to work.

"We don't do much around here that's bipartisan these days," said Sen. Rob Portman (R-Ohio), who was U.S. trade representative during the George W. Bush administration. "This is an example of where we can come together as Republicans and Democrats realizing that with 14 million Americans out of work, we need to do things to move our economy forward."

'Major win' for workers

President Barack Obama said passage of the agreements was "a major win for American workers and businesses. Tonight's vote, with bipartisan support, will significantly boost exports that bear the proud label 'Made in America,' support tens of thousands of good-paying American jobs and protect labor rights, the environment and intellectual property. ... I look forward to signing these agreements."

While the deals with Colombia and Panama are likely to have limited economic impact, the agreement with South Korea is designed to break down barriers between the United States and the world's 15th-largest economy.

The South Korea deal has the potential to create as many 280,000 American jobs, according to a recent assessment by the staff of the U.S. International Trade Commission, and to boost exports by more than $12 billion. Several major labor unions have warned that any gains will come at the cost of layoffs among American workers because of heightened competition from Korean imports.

The Korea deal was widely hailed as the most consequential trade pact since the North American Free Trade Agreement was ratified in 1994.

Ratification of the agreements holds particular importance for Obama, who has set a goal of doubling U.S. exports by 2015 and is facing a tough bid for re-election with unemployment stuck at 9.1%.

Various U.S. industries are expected to benefit from the agreements. American producers of beef, dairy, pork and poultry products, chemicals and plastics are all likely to increase exports to South Korea. The banking and financial services industries also could be big winners, analysts said, benefiting from relaxed regulations and rules relating to foreign investment.

"These free-trade agreements will give our economy a much-needed shot in the arm and create tens of thousands of American jobs," said Sen. Max Baucus (D-Mont.). "The passage of these agreements today is a significant victory for American workers and businesses and will help create jobs here at home."

Unions oppose deals

Several Democrats and prominent labor unions, however, opposed the deals, arguing that they could help U.S. companies without bringing much benefit to U.S. workers, particularly if increased imports lead to widespread layoffs.

Some also argued that the agreements serve to reward two countries, Panama and Colombia, that have been hostile to organized labor and international environmental standards. "I find it deeply disturbing that the United States Congress is even considering a free-trade agreement with a country that holds the world record for assassinations of trade unionists," Rep. Maxine Waters (D-Calif.), said, referring to Colombia.

To address Democratic objections to the deals, the White House demanded linking the trade bills to an extension of a Kennedy-era program that helps workers displaced by foreign competition with retraining and financial aid. The Senate went along; the House passed it Wednesday, 307-122. Wisconsin Republican Reps. Reid Ribble and Jim Sensenbrenner voted against the measure.

The pacts were first negotiated under President George W. Bush but were updated by Obama to include more guarantees for labor and human rights and environmental protections. The pacts were recently held up in a dispute between Obama and congressional Republicans over whether to renew the worker assistance program.

Overall, the trade pacts with South Korea, Panama and Columbia could increase exports by roughly $13 billion a year. But the amount of imports also is likely to increase by that much or more as a result of the deals, dampening the overall effect on the economy.

South Korean President Lee Myung-bak is set to deliver a joint address to Congress on Thursday and then travel with Obama on Friday to a General Motors plant near Detroit that is described as a likely beneficiary of the agreement.

The United States has similar agreements with 17 other nations, striking its last deal in 2007 with Peru. Other countries with such agreements include Canada, Israel and Australia.

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