09 May 2007
Free-Trade Deals Help Latin American Nations Boost Democracy
Rejecting Colombia, Peru, Panama pacts would send wrong signal, Rice says
Washington – Failing to extend free-trade agreements (FTAs) to Colombia, Panama and Peru would be a “huge” mistake at the time when Latin America faces real challenges to democracy and peace, U.S. Secretary of State Condoleezza Rice says.
“Trade helps new democracies to consolidate their political transitions and to prevent backsliding,” Rice said in May 9 remarks to a business group in Washington. “It helps them to build the effective institutions of a free society. And trade helps to give citizens a greater stake in the long-term stability and success of their democracy."
The Bush administration has signed FTAs with Colombia and Peru and negotiated another one with Panama, but the agreements require congressional approval to come into force. Congressional Democratic leaders have pressed the administration to strengthen labor and environmental provisions in FTAs. Those leaders have called for a “new trade policy for America,” beginning with the trade pacts with the three Latin American nations.
Colombian President Alvaro Uribe and Peruvian President Alan Garcia were recently in Washington to encourage Congress to approve pacts with their nations.
Speaking at the White House in April, Garcia said the trade pact “would help us keep and maintain a strong democracy.” In the 2006 elections, Garcia narrowly defeated a candidate backed by leftist President of Venezuela Hugo Chávez.
Rice said the trade agreements would help Garcia and Uribe make further political and economic progress under difficult circumstances. (See related article.)
“In democratic countries, trade and economic reform can help to consolidate lasting political reform,” she said.
In addition, Rice said, the recently negotiated FTA with South Korea creates an opportunity to help a key democratic ally in Asia “lock in” economic reform and the rule of law.
She said this trade pact could serve as an anchor of the lasting U.S. engagement in the region at a time when “some fear that American leadership in Asia is waning.” (See related article.)
Refusing to approve that FTA would be a “disastrous signal to send,” Rice said.
All four FTAs were negotiated under the presidential trade promotion authority (TPA) also known as “fast track.” Under TPA, which expires June 30, Congress must either approve or reject the deals without amendments. (See related article.)
Max Baucus, Democratic chairman of the Senate Finance Committee, which has jurisdiction over trade issues, said May 7 that Congress might let TPA expire as scheduled June 30 if the Doha round of global trade talks being negotiated under the auspices of the World Trade Organization fails to make significant progress.
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
