The election of a Democratic- controlled Congress more skeptical about the value of free trade is forcing Colombia and Peru to decide whether they need to make additional concessions on labor issues to win congressional approval of trade deals they have negotiated with the US, The Wall Street Journal reported yesterday.
The report said the two South American nations have negotiated deals with the US that liberalize trade in a host of areas, including industrial tariffs, textiles, and apparel and service industries.
Peru already has ratified the pact; Colombia plans to sign its agreement next week and ratify it afterwards. Congress isn't likely to take up either measure until next year, after the Democrats take control, according to the report.
Democrats have long complained that the South American agreements -- as well as other deals signed by the Bush administration -- skimp on protections of labor rights. That has presented Colombia and Peru with a dilemma: Should they make concessions beyond what the White House has sought -- which is sure to be controversial at home -- or face possible rejection of the deals by Congress, said the report.
On Monday, Colombian President Alvaro Uribe said he didn't plan to accept changes in the deal. "I consider that the provisions we have included to protect workers in the agreement are clear provisions" and didn't need to be augmented, he said, after a day of lobbying on Capitol Hill. "More than the provisions, we have the political will to protect our workers."
Earlier in the day, Hernando de Soto, a Peruvian economist appointed as special trade envoy, took a more conciliatory stance. He said his country had a "game plan" to present to the US that "should put to rest the concerns many Democrats have concerning labor and other matters," according to Reuters. But he wasn't more specific.