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WASHINGTON: The Democratic-controlled Congress made clear on Friday it was taking back its constitutional trade authority from President George W. Bush, a day before his special power is set to end.
The expiration of the Trade Promotion Authority (TPA), which allows the Bush administration to negotiate trade agreements that cannot be amended by Congress, could deal a major blow to the nearly collapsed Doha Round of World Trade Organisation (WTO) talks.
The TPA, also known as "fast-track," was extended for two years in 2005 and expires at midnight on Saturday.
"Our legislative priorities do not include the renewal of fast-track authority," House of Representatives Speaker Nancy Pelosi and other leading Democrats said in a statement.
The House Democrats said they had a plan to improve US trade policy, while at the same time addressing increased economic insecurity felt by American families.
Among the steps to be taken is the introduction soon of legislation to address the growing US trade imbalance with China and strengthen overall enforcement of US trade agreements and US trade laws.
"Before that debate can even begin, we must expand the benefits of globalisation to all Americans, including taking the actions outlined above. We hope that the administration will join us in these efforts," they said.
Senator Max Baucus, chairman of the Finance Committee, which has jurisdiction over trade policy, said his panel would turn to the TPA "at an appropriate time in the future", after it has been reshaped in "a more powerful job-creating tool for American workers and businesses".
Meanwhile, the Bush administration made a last-minute pitch to save the TPA.
"It's regrettable that Congress is letting this authority expire this weekend," said Tony Fratto, a Bush spokesman.
"It will be damaging to our economy and our national security if Congress abandons Americas leadership role in trade and the global marketplace," he said.
US Trade Representative Susan Schwab pointed to a May compromise reached between the Republican administration and Congress on several bilateral trade pacts negotiated under the TPA.
"I am hopeful this spirit of cooperation will guide our efforts to renew TPA," she said in a statement.
Secretary of State Condoleezza Rice called on Congress to renew TPA "immediately".
"If Congress does not renew that authority, America will lose an important diplomatic tool that has proven essential to bringing foreign leaders to the negotiating table and advancing our nation's broader foreign policy interests," Rice said.
The White House appeal, however, apparently fell on deaf ears as Congress headed into a week-long recess for the July 4 Independence Day holiday. The House of Representatives adjourned on Thursday and the Senate on Friday.
The looming expiration of the TPA had been used as a spur to move forward the WTO's sputtering Doha Round of global trade talks, launched in the Qatari capital in 2001.
However, the Doha Round remains stalled over agricultural tariffs and subsidies. Early this month, talks collapsed in Germany between the so-called "G4" – the European Union, United States, Brazil and India – representing industrialized and developing nations.
Meanwhile, the Bush administration was planning to wrap up a week of bilateral free-trade agreements negotiated under TPA with the signing of a pact with South Korea on Saturday.
The United States sealed FTAs with Peru on Monday and Colombia and Panama on Thursday.
However, House Speaker Pelosi said the lower chamber would not support approval of the pacts with South Korea or Colombia at this time.
The US-South Korea deal lacks adequate market access for the US, particularly in the automobile sector, she said.
And lawmakers are concerned about the levels of violence in Colombia and weakness in the legal system, she added.
- AFP/so
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