Obama slows down

The newsletter World Trade/Interactive reports that the Obama administration, which had shown some interest in the bilateral trade agreements with Panama, Columbia, and Korea earlier this year, has decided to slow down (World Trade/Interactive):

The Obama administration, which had actively pushed for congressional consideration of the Panama FTA over the past few months, has reportedly decided to put the issue on hold in order to avoid contention that could have dimmed the prospects for enacting legislation on the higher priority issues of health care and climate change. Observers do not now expect the FTA to move forward until President Obama gives a speech outlining what deputy U.S. trade representative nominee Sapiro called “a new framework for trade that embeds it in his overall economic policy.” According to Inside US Trade, however, that may not happen until the president “can highlight progress on health care and other measures, such as expanded Trade Adjustment Assistance (TAA), as a new domestic framework that ensures that U.S. workers can better face the impact of international trade.”

Senate Finance Committee Chairman Max Baucus, D-Mont., who is among the Democrats who support the pending FTAs with Panama, Colombia and South Korea, told Sapiro in a recent confirmation hearing that he was upset that the White House has not consulted with Congress on the decision to put the Panama FTA on hold or its broader trade policy framework. Baucus said he learned of the Panama decision in the press, which he argued was inconsistent with USTR Ron Kirk’s pledge to maintain “close consultation” with Congress on potential FTAs. He proposed that in the future USTR and the Finance Committee hold regular meetings to “minimize misunderstandings and avoid surprises.” Sapiro responded that she personally would consult with Baucus “as much as you would like” and that she would raise the idea of regular discussions with Kirk.