In a recent post and in this Washington Times commentary today, I note that there is less than meets the eye with respect to last week’s “grand deal” to include labor and environmental provisions in trade agreements reached between congressional Democrats and the White House. (That’s not to say its unimportant — it is significant, and also regrettable).
One of my points (implicit as it may be) is that caving on labor and the environment would not be enough to warm Congress to the benefits of trade liberalization. What was pitched to the press as the final price to win Congressional support for the administration’s trade agenda was merely the admission fee. More demands would be forthcoming.
Alas, today members of Congress (22 Ds, including the trade leadership and 20 Rs) petitioned the U.S. Trade Representative to launch a Section 301 investigation into Chinese currency manipulation. The petition is touted as “one last chance” for the Bush administration to act on the currency manipulation issue before legislation effectively mandating that conclusion, along with sanctions, is moved in Congress.
I can already see the words of Ways and Means trade subcommittee chairman Sander Levin (D-MI) when the USTR turns down today’s 301 petition. “How can any member of Congress in his right mind vote to support any more trade agreements when this administration is unwilling to stand up for the working men and women of America?”
Of the four pending bilateral trade agreements (Korea, Colombia, Peru, and Panama), I’m betting exactly none will become reality during this presidency and beyond.