As the Bush administration enters its final year, US Trade Representative Susan B. Schwab has outlined an agenda that calls for approval of free trade agreements (FTAs), continuing pursuit of the Doha Round of trade liberalization negotiations and addressing trade problems with China, “with dialogue where possible and enforcement when necessary.”

Schwab expressed her concern over some of the legislation pending in Congress, saying, “This is not a good time for Congress to be seeking quick fixes for complex international economic challenges.” And she warns that unilateral actions can lead to retaliation.

With respect to specific issues, she called once again for congressional approval of the pending FTAs with Colombia, Panama and South Korea. US textile and apparel manufacturers and importers seem to be ready to go along with the Colombia and Panama agreements, but they are widely split with regard to South Korea, and it appears at this time there is very little likelihood it will be approved.

In a far-ranging discussion, Schwab called for continuation of a spirit of bipartisan cooperation that has emerged since the Democrats took control of Congress. “Together we have started down a new road, but we have yet to reach the final destination — indeed some fear that the destination keeps being moved,” she said.

Referring to a May 10, 2007, agreement between leaders of Congress and the administration, Schwab said, “I thought then, and I still believe that we can achieve a unified American approach to economic engagement and leadership in the world that transcends party, president and Congress.”

Turning to China, Schwab mentioned a number of recent successes with cases the administration has taken to the World Trade Organization (WTO), pointing out that the United States has won or successfully settled cases 96 percent of the time. She said the United States is ready and willing to settle disputes with China in “a business-like manner,” but warned that the admistration has serious concerns about “unintended consequences of proposed legislation targeting China.”

Although the Doha Round of Trade negotiations has been on dead center for months, she says the US government will continue to press ahead for an outcome that will “increase economic growth and development and alleviate poverty by generating new trade flows in agriculture, goods and services.” Schwab added: “The time for playing games is over. We have a window of opportunity. Let’s use it and use it wisely.”

She believes the remaining months of the Bush administration will be “very busy on the trade front, because we have the opportunity to get a lot of work done.”

Source: Textile World