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Trade Politics and Bilateral Trade Agreements
Report Delivered October 9, 2008 By Stefanie
Westerman
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Overview

• Trade Politics History
• Bilateral Agreements To date
• Politics of Bilateral Agreements
• Problems
• Solutions

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History of Trade Politics

• From the start of our country until 1934, US
  trade politics was inward looking
• 1934 Secretary of State, Cordell Hull
• Great Depression had discredited protectionism
• Post World War II
• 1960s support for trade liberalization began
  to lessen
• Trade Adjustment Assistance
• 1974 Trade Promotion Authority
• It's not the facts on the ground it's the
  politics in the air Charlie Rangel

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Bilateral Trade Agreements

• Definition
• 1985 -- Israel, President Ronald Reagan
• 1989 Canada, President George H.W. Bush
• 1994 - NAFTA
• 2000 Jordan, President Bill Clinton
  _______________________________________
• Trade Diversion Trade Creation
• Economic/Security Interests
• Undermine the WTO Multilateral System?

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Status of Free Trade Agreements Negotiated Since
Trade Promotion Authority was Restored in 2002
Country Negotiations Launched Negotiations Completed Approved by Congress Entry into Force
Chile X X X January 1, 2004
Singapore X X X January 1, 2004
Australia X X X January 1, 2005
Morocco X X X January 1, 2006
DR-CAFTA Costa Rica Dominican Rep. El Salvador Guatemala Honduras Nicaragua X X X El Salvador and the United States Mar. 1, 2006 Honduras April 1, 2006 Nicaragua April 1, 2006 Guatemala July 1, 2006 Dominican Republic March 1, 2007
Bahrain X X X August 1, 2006
Oman X X X
Peru X X X
Colombia X X
Panama X X
Korea X X


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Source U.S. Chamber of Commerce
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Trade Politics of Today

• May 10, 2007 fundamental change to US trade
  policy
• labor, environmental regulation, intellectual
  property, port security, and investment in trade
  agreements
• Peru FTA passed in 2007
• Colombia under TPA, vote to stop the clock
• TAA needed
• Colombia, Panama and South Korea signed but
  pending Congressional Approval

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Bilaterals and Trade Politics

• So many votes on FTAs since 2002
• Difficult for Congress
• Communication between Administration and Capitol
  Hill
• Bilaterals Flare points more easily identified

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Current Problem

• TPA Power of Congress
• Significance of Bilateral Agreement
• Economic Gain
• Foreign Policy Imperative
• Trans-Pacific Strategic Economic Partnership
  Agreement (P-4)
• Singapore, New Zealand, Chile, and Brunei

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Solution

• Stop negotiating bilateral agreements and focus
  on regional/multilateral deals.
• Trade education
• TAA
• State Level Trade Delegations build up
  support/economic impact on a local level
• Meet with leaders in key Capitols around world
• Find new ways of communicating with the Hill

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Candidates Positions

• McCain
• Continue negotiating bilateral agreements
• Very supportive of WTO and multilateral
• Obama
• Renegotiate NAFTA labor/environment
• Regretful Doha round collapsed in July, but right
  for the US to walk away
• USTR
• TPA?

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Conclusion

• Domestic Impact of Solution
• Global Impact of Solution
• A Member of Congress is placed in the position
  of weighing the effects of his/her constituency
  verses the overall impact on the United States
  and other trading partners. William Cooper
• Questions?

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Sources Used

• BNA International Trade Daily, Democrats Pledge
  to Work Through Multilateral Fora to Achieve
  Trade Goals, August 19, 2008.
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• Connell, Sean. US Korea FTA Position Paper.
  U.S.-Korea Business Council, 2006.
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• Cooper, William. Free Trade Agreements Impact
  on U.S. Trade and Implications for U.S. Trade
  Policy. CRS Report for Congress, July 23, 2008.
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• Council on Foreign Relations, The Presidential
  Candidates on Trade, May 22, 2007.
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• Cut a deal on Colombia, Los Angeles Times,
  April 12, 208.
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• Dauster, William. U.S. Senate Committee on
  Finance, Trade Promotion Authority Annotated,
  February 2007. http//finance.senate.gov/TradeProm
  otionAuthority.pdf
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• Destler, I.M. American Trade Politics. Washington
  DC Institute for International Economics, 4th
  ed. 2005.
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• Forecast on Latin America and the Caribbean
  Conference, AACCLAs 41st Annual Meeting,
  September 22-23, 2008.
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• Griswold, Dan. Bilateral Deals are no Threat to
  Global Trade. CATO Institute, July 28, 2003.
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• Griswold, Dan. Dems betray our ally Colombia.
  CATO Institute, April 18, 2008.

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