Reuters
May 7, 2001
By Steve Holland

WASHINGTON (May 7) - President Bush warned Monday the drive to attach labor and environmental standards to trade deals represents a "new kind of protectionism" that is hampering his ability to pursue open trade.

In a nine-minute speech to the Council of the Americas, an influential business group, Bush urged Congress to give him the trade negotiating authority he needs to pursue a free trade agreement among North and South American nations.

Bush said the concerted effort, which has been led by Democrats and labor unions, to attach labor and environmental standards to free trade agreements represented a threat to free trade that the previous Clinton administration and Congress allowed to gather strength.

"By failing to make the case for trade we've allowed a new kind of protectionism to appear in this country. It talks of workers while it opposes a major source of new jobs. It talks of the environment, while opposing the wealth-creating policies that will pay for clean air and water in developing nations," Bush said.

"It talks of the disadvantaged even as it offers ideas that would keep many of the poor in poverty. Open trade is not just an economic opportunity. It is a moral imperative. Trade creates jobs for the unemployed," he said.

Bush praised what he called "fresh new thinking" among some members of Congress on how to handle labor and environmental standards -- an apparent reference to proposals to fine nations that fail to uphold agreed-upon standards, rather than levying sanctions against them.

"They recognize that 'one-size-fits-all' policies can't succeed. They know we need a toolbox equipped to match diverse tools with diverse problems, and I agree," Bush said.

Fast Track Died Under Clinton

Under the trade promotion authority, also know as "fast track," Congress can vote up or down, but not amend, trade deals negotiated by Bush.

Bush's father had the fast track authority during his presidency, but it expired in 1994 under President Bill Clinton and has never been renewed as lawmakers spar over how to handle labor and environmental issues associated with trade.

Bush cited "the inactivity of the American government" in letting fast track lapse. he said one of the casualties has been uncompleted trade talks with Chile.

Demonstrators against free trade and largely in favor of labor and environmental protections have played havoc with a number of international gatherings including the 34-nation Summit of the Americas in Quebec last month.

The president is to make his formal request to Congress to give him the authority later this week. It faces an uncertain future on Capitol Hill.

"One tool I must have is renewed U.S. trade promotion authority. I urge the Congress Restore our nation's authority to negotiate trade agreements, and I will use that authority to build freedom in the world, progress in our hemisphere, and enduring prosperity in the United States," he said.

Bush pointedly praised Taiwan and managed a dig at communist China in talking about countries where democracy is flourishing, propelled by free trade.

"Look at our friends Mexico and the political reforms there. Look at Taiwan. Look at South Korea. And some day soon, I hope that an American president will end that list by adding, look at China. I believe in open trade with China because I believe that freedom can triumph in China," he said.

At the Summit of the Americas, Bush told regional leaders he was confident he would get trade promotion authority "before the end of the year" and promised to kick off the debate by outlining a set of principles when he returned to Washington.

Democrats generally want strong protection for labor and the environment as part of trade pacts, while Republicans are leery of including such provisions, fearing they could become obstacles to trade.

The standoff has prevented action on a U.S.-Jordan Free Trade Agreement negotiated by the Clinton administration.