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February 15, 2007  
 

The Washington Post

Democrats, White House Clash on Trade

 

Peter Goodman, Washington Post Staff Writer

 
For a time yesterday, it seemed as if a new bipartisan spirit was flowering between the Bush administration and Democratic leaders on Capitol Hill over trade policy. Until, that is, flowers themselves entered the conversation during a Valentine's Day hearing.

The U.S. trade representative, Susan C. Schwab, told the House Ways and Means Committee that she was eager to find a compromise that would satisfy Democrats demanding stricter labor protections in proposed trade deals with Colombia, Peru and Panama. She cited the benefits of expanded trade, noting that U.S. exports are booming, the economy is growing and unemployment is low.

The chairman of the committee, Rep. Charles B. Rangel (D-N.Y.) praised Schwab for agreeing to discuss the labor issue, adding his hopes that Congress would soon pass the trade deals.

But then Rep. Sander M. Levin (D-Mich.), who chairs the trade subcommittee, chided Schwab for focusing exclusively on U.S. exports: What about imports? What about the people losing factory jobs as cheap goods flow in from countries where workers, he said, are exploited?

"Imports do matter," Schwab assured him. "They matter to people who went out and bought roses today for their sweetheart, where they were able to buy inexpensive flowers at Safeway or Costco, where maybe a few years ago it would have been much more expensive to buy long-stemmed roses. That's trade."

Rep. Bill Pascrell Jr. (D-N.J.) took no comfort from Schwab's point. "Those very flowers come from countries that have child labor and forced labor, and that's why the prices are cheaper," he said. "And if we don't concern ourselves about that, then we are not the country we pretend to be."

That exchange illustrated the significant divide that remains over trade policy, even as Bush administration officials meet behind closed doors with House leaders to try to hash out a compromise.

Democrats, eager not to be painted as protectionists, have in recent weeks toned down their rhetoric, with leaders saying repeatedly that they want to see a new round of trade pacts approved. The Bush administration, keen to win congressional approval for recently negotiated pacts with Peru, Colombia and Panama and intent on securing deals with Korea and Malaysia, has been speaking of compromise on labor protections, the most contentious issue of the debate.

But beneath that amiable talk, substantial disagreement remains over details, according to sources in the administration and on Capitol Hill and as evidenced by the sometimes sharp exchanges during yesterday's hearing.

Previous trade deals, such as the North American Free Trade Agreement, have included side letters that say countries must not tolerate forced or child labor and must allow labor groups to form unions. But much to the consternation of U.S. labor unions, those conditions have been subject to a more lenient enforcement standard than applies to other parts of the pacts, such as those governing the lowering of tariffs.

Democratic leaders have long insisted that trade deals include core labor standards enunciated by the International Labor Organization, an arm of the United Nations: the abolition of child and forced labor, no discrimination in employment, and the right to collective bargaining.

The administration has sought to finesse the issue, discussing with congressional staff members the possibility of adding language in which governments promise to abide by similar standards but with a different kind of enforcement mechanism.

In an interview yesterday, Levin, the trade subcommittee chairman, said that would not fly: "Now, we're in the majority, and they have to step up to the plate," he said. "They haven't so far."

When, during the hearing, Rep. Lloyd Doggett (D-Tex.) pressed Schwab to embrace ILO standards, she demurred. "I have made a commitment to this committee to try to bridge the divide on labor standards," she said.

Schwab said the committee should be "upbeat" about data released by the Commerce Department on Tuesday showing that the U.S. trade deficit reached a record $764 billion in 2006. Looking beyond that headline, she said, will show that exports are booming to countries with which the United States has trade deals, creating jobs for Americans.

"Upbeat," Doggett repeated scornfully. "You believe that we just need to stay the course."

Rep. Stephanie Tubbs Jones (D-Ohio) dismissed talk of low unemployment, asserting that parts of her district have a jobless rate pushing 14 percent.

"In Ohio, workers -- fact or fiction -- believe that their jobs are gone because of the trade policies of our government," she said. What, she asked, was Schwab doing to "ease their worry"?

Schwab acknowledged a perception problem, adding that the majority of Americans have benefited from trade.

"There is a reality," Tubbs Jones replied. "People have lost jobs because of trade."

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