Juanson World

How will the Democratic congressional win affect relations with Latin America? Critical to US-Latin American relations are the negotiations for bilateral and regional free trade agreements (FTAs). While both parties were strong proponents of NAFTA, DR-CAFTA encountered stiff resistance in the House from Democrats and only passed by two votes. The US signed agreements with both Peru and Colombia in the past twelve months, but neither FTA made it to Congress for a vote.

Now in the lame duck session, the Andean Trade Preferences and Drug Eradication Act (APTDEA), which covers Colombia, Ecuador, Peru, and Bolivia, is up for renewal at the end of the year. Extending ATPDEA is crucial for the bilateral agreements with Colombia and Peru to have any chance of making it through the Democratic House. It will be interesting to see whether the new Congress – composed of many moderate Democrats – will see the benefits of these agreements. The Republicans in the House will do everything possible in the lame duck session to extend ATPDEA until the Peru and Colombia agreements pass the House. It is in the interests of both parties to continue this accord, which claims to provide benefits for drug eradication as well.

President Bush’s fast track authority, set to expire next July, could also be in jeopardy. Without significant reworking and bipartisan cooperation, it is unlikely that the two agreements pass the Congress either in this lame duck session or in next year’s Pelosi Congress.