Administration Says Panama Close to Completing Work on FTA Issues

Chair Says No Need to Wait to Begin Technical Drafting on Panama, Colombia FTAs

In his opening statement, Chairman Brady (R) said that Panama’s actions to date are more than enough to warrant Congressional consideration of the Panama FTA. Brady called on the Administration to begin technical discussions with Congress on legislation to implement the Panama and Colombia FTAs. (Technical discussions on legislation to implement the U.S.-Korea FTA (KORUS FTA) have already begun.) Brady also restated his desire for Congress to consider all three pending FTAs by July 1, 2011.

Ranking Member Urges Subcommittee to Hold KORUS Mock Markup ASAP

Trade Subcommittee Ranking Member McDermott (D) expressed disappointment with the slow pace of congressional consideration of the KORUS FTA and encouraged the scheduling of a mock mark up for the KORUS FTA as soon as possible.

Delay for Rest of Trade Agenda Until Colombia FTA Criticized by McDermott

McDermott further criticized what he described as the Republicans’ decision not act on other trade issues, such as renewal of the Generalized System of Preferences (GSP), Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA), and Trade Adjustment Assistance (TAA) programs; a second Miscellaneous Tariff Bill (MTB); etc., until the Colombia FTA is passed.

McDermott Also Urges Submission of Panama FTA as Soon as Issues Resolved

McDermott notes that Congress would undermine the Administration’s efforts to resolve the outstanding issues if it were to consider the FTA before Panama takes action. However, McDermott stresses that once Panama takes the required action, the Panama FTA should be submitted to Congress without delay and not held hostage to unrelated issues.

Discussions with Colombia on FTA Issues Resumed on March 30

During her testimony, Deputy USTR Sapiro noted that high-level discussions with Colombia on outstanding FTA issues resumed on March 30, 2011. She said that labor and tax transparency issues still needed to be addressed before moving forward on the Panama FTA, and that the USTR has worked with Congress, stakeholders and the Government of Panama to identify specific steps Panama could take to improve its protection of internationally recognized labor rights and to address impediments in its domestic law that had prevented the conclusion of a Tax Information Exchange Agreement (TIEA) with the United States.

Administration Continues to Urge Prompt Renewal of GSP, ATPDEA, and TAA

As she did during the Trade Subcommittee’s March 17, 2011 hearing on the Colombia FTA, Deputy USTR Sapiro urged Congress to promptly renew ATPDEA, GSP, and TAA for as long as possible.

(In addition to Deputy USTR Sapiro, various private-sector witnesses also testified at this hearing.)

(See ITT’s Online Archives or 03/24/11 news, 11032436, for BP summary of Trade Subcommittee announcement that the second in a series of hearings on the pending FTAs would be on Panama.

See ITT’s Online Archives or 03/16/11 news, 11031618, for BP summary of joint statement from the Chairmen of the House Ways and Means Committee and its Trade Subcommittee that all three pending FTAs would pass the House with bipartisan support if the White House agreed to act on all three.

See ITT’s Online Archives or 03/10/11 news, 11031026, for BP summary of USTR Kirk’s testimony on the 2011 trade agenda In which various Senators said that the three pending FTAs would not pass unless “packaged” and called for GSP renewal.

See ITT’s Online Archives or 03/11/11 news, 11031110, for BP summary of Senate Finance leaders’ request for technical discussions to begin on Colombia and Panama FTA bills.)

Hearing opening statements and written witness testimony available here