12.08.2006
FTAA a Pipe Dream
The US congress today is set to approve an extension of APTDEA, which would extend the tariff preferences for Colombia, Ecuador, Peru and Bolivia for six months. The extension is a compromise between different versions of a larger trade bill – the more generous (and sensible) Senate version would have extended the preferences for a full year (which would allow more time for a probable renegotiation of bilateral FTAs with Peru and Colombia) and the House version would have extended preferences only to Peru and Colombia for six months.
This is certainly good news, but Lima and Bogotá are not exactly popping champagne corks. The most likely scenario for next year’s Congress is a return to the drawing board on labor standards and other disputed aspects of the agreements. I blame timing for this one, as the shift in political power mandates that the Democrats flex their muscle on prominent legislative battles, and Peru and Colombia end up being the unintended losers. Throughout the hemisphere, opinion polls show that Latin Americans want trade. It is ironic that the US has leaned decidedly towards protectionism with two strong allies in the region while “leftist populists” win elections nearby.
This is certainly good news, but Lima and Bogotá are not exactly popping champagne corks. The most likely scenario for next year’s Congress is a return to the drawing board on labor standards and other disputed aspects of the agreements. I blame timing for this one, as the shift in political power mandates that the Democrats flex their muscle on prominent legislative battles, and Peru and Colombia end up being the unintended losers. Throughout the hemisphere, opinion polls show that Latin Americans want trade. It is ironic that the US has leaned decidedly towards protectionism with two strong allies in the region while “leftist populists” win elections nearby.
# posted by Juanson : 5:50 PM
