South Korea, Colombia, Panama Trade Accords Clear U.S. Congress

Congress cleared legislation for U.S. free-trade agreements with South Korea, Colombia and Panamá that supporters called the biggest opening of markets for American companies in almost two decades.

The accords, reached under President George W. Bush more than four years ago and revised by the Obama administration, overcame a stalemate with Republicans on aid for workers who lose their jobs to foreign competition.

President Barack Obama submitted the legislation after House Speaker John Boehner, an Ohio Republican, said he would consider the worker assistance along with the trade deals. 

The bills now go to Obama for his signature.

"These agreements will provide an economic boost at a time when our country sorely needs it," Senator Max Baucus, a Montana Democrat who leads the Finance Committee, which controls trade bills in the chamber, said after almost eight hours of debate. 

"We also bind ourselves even more closely to three of our most important allies, and we demonstrate to countries around the world that the United States is a good and dependable partner."

The South Korea deal, the biggest for the U.S. since the North American Free Trade Agreement in 1994, would boost U.S. exports by as much as $10.9 billion in the first year in which it's in full effect, according to the U.S. International Trade Commission. 

The accord with Colombia would increase exports by as much as $1.1 billion a year.

Companies such as Ace Ltd., Citigroup Inc. and Pfizer Inc. have led the effort to get the South Korea deal passed, while Caterpillar Inc., General Electric Co. and Whirlpool Corp. were among the biggest backers of the accord with Colombia.

'Best Possible Deal'

"I've fought to make sure that these trade agreements" with three nations "deliver the best possible deal for our country," Obama said in an e-mailed statement. 

"American automakers, farmers, ranchers and manufacturers, including many small businesses, will be able to compete and win in new markets."

Obama spent two years seeking to broaden Democratic support for the accords. 

He negotiated terms for auto tariffs in the South Korea agreement that won over the United Auto Workers union, an exchange of tax information with Panama and labor- rights assurances from Colombia.

The South Korea accord removes duties on almost two-thirds of U.S. farm exports immediately, benefiting producers of meat, dairy, vegetables and fruits and nuts.

The House and Senate passed the agreements as South Korean President Lee Myung Bak visited Washington. Lee, who is to address Congress today, told the U.S. Chamber of Commerce yesterday that the trade accord will create "good, decent jobs" that will help spur both economies.

South Korea Tariffs

The agreement with South Korea would phase out tariffs on more than 95 percent of industrial and consumer exports within five years, increasing market access for U.S. chemical, automobile, medical device and drug companies. 

Banks and communications companies would gain new opportunities through reductions in regulatory barriers.

The trade deals were opposed by groups including the AFL- CIO the nation's largest federation of labor unions and a frequent Democratic ally. 

Richard Trumka, the organization's president, had urged lawmakers to oppose them, saying in an Oct. 4 speech in Washington that they are "lousy" deals and will destroy 159,000 jobs by encouraging companies to send work overseas.

"These flawed trade deals are the wrong medicine at the wrong time," Trumka said in a statement yesterday. 

"Working people know what too many politicians apparently do not: These deals will be bad for jobs, workers' rights and our economy."

Casey, Brown

Senators Robert Casey of Pennsylvania and Sherrod Brown of Ohio, both Democrats from manufacturing states facing re- election next year, opposed the agreements. 

They said prior trade deals never worked as well as advertised for U.S. workers.

"Will these agreements create a substantial amount of jobs?" Casey said before the vote. 

"They will not. They will in fact lead to job losses, especially in manufacturing."

The U.S. Chamber of Commerce said the trade agreements will prevent the loss of 380,000 jobs.