Update on Korea and Colombia Free Trade Agreements

April 25, 2008

On April 22, 2008, U.S. Trade Representative Susan Schwab stated the Bush Administration intends to submit the implementing bill of the U.S.-Korea Free Trade Agreement to Congress, “at the most appropriate time that will facilitate enactment in 2008,” following an agreement that was reached to fully open Korea’s market to U.S. beef exports.

U.S.-Korea Business Council President Myron Brilliant stated that the beef deal was critical to passing this agreement, but that it will not dislodge the Free Trade Agreement ("FTA") overall because of other issues raised by members of Congress. 

House Ways and Means Subcommittee on Trade Chairman Sander Levin (D-MI) responded to the beef deal, stating it was not enough to get the FTA passed specifically due to the issue of, “Korea’s one-way street in manufacturing trade.” Levin charged that the FTA would, “allow the Korean auto industry to continue an export driven strategy using the profits from their protected home market to fund research and development and broader incursions into the U.S. and other major markets.”

Previously, the Bush administration had insisted that the U.S.-Colombia FTA take priority since it was signed before the U.S.-Korea FTA.  Earlier this month the House voted to delay the vote on the Colombia FTA.   The Bush Administration has publicly criticized House Speaker Nancy Pelosi (D-CA) for orchestrating this delay. 

This week, Dan Glickman, former Secretary of Agriculture under President Bill Clinton, stated that the administration’s strategy of strongly criticizing Pelosi for delaying the House vote on the agreement will hurt the passage of this FTA in the long term.  Previously, Glickman was one of 35 former Democratic administration officials that sent an open letter supporting passage of the Colombia FTA.

Speaker Pelosi, this week, announced that she would not publicly list her conditions for having the House consider this agreement before revisiting the economic stimulus package.  According to a Pelosi aide, certain initiatives were left out of the first stimulus package from last January including the extension of employee benefits, the provision of food stamps, and a robust Trade Adjustment Assistance (TAA) bill. 

In response to Pelosi, House Republican Leader John Boehner (R-OH) stated, “ it is increasingly evident that the Democratic leadership does not want to see a vote on this important free trade agreement."  In addition, Boehner continued to argue that Pelosi is holding up this FTA for “purely political reasons.”