Trade Negotiations During the 110th Congress

The Bush Administration has made bilateral and regional free-trade agreements FTAs an important element of U.S. trade policy, a strategy known as competitive liberalization. This strategy, it argues, will push forward trade liberalization simultaneously on bilateral, regional, and multilateral fronts. It is meant to spur trade negotiations by liberalizing trade with countries willing to join FTAs, and to pressure other countries to negotiate multilaterally. Critics contend, however, that the accent on regional and bilateral negotiations undermines the multilateral forum and increases the risk of trade diversion away from competitive countries not in the trade bloc. On May 10, 2007, Congressional leaders and the Bush Administration announced a conceptual agreement on changes to currently notified free trade agreements FTA. Negotiations have been concluded with Peru, Colombia, Panama, and South Korea in time to be considered by Congress under U.S. trade promotion authority. Legislation to implement the Peru FTA was approved by Congress and signed into law by the President on December 14, 2007 P.L. 110-138. Legislation to implement the Colombia FTA was introduced in each chamber under TPA rules on April 8, 2008 H.R. 5724, S. 2830. On April 10, the House voted to suspend TPA rules with regard to this agreement H.Res. 1092. Several other trade initiatives are under discussion, including a U.S.-Middle East FTA and an FTA with countries in Association of South East Asian Nations ASEAN bloc. Legislation to implement the Central American-Dominican Republic Free Trade Agreement CAFTA-DR and FTAs with Bahrain and Oman were approved by the 109th Congress. The broadest trade initiative being negotiated is the Doha Round of multilateral trade negotiations in the World Trade Organization WTO.