Include environmental and labor standards in trade agreements

Pursuing new trade policies

Updated: Friday, November 6th, 2009 | By Lukas Pleva

In an effort to appeal to labor unions and environmentalists during the campaign, Barack Obama promised that he  "will use trade agreements to spread good labor and environmental standards around the world."

Obama has a chance to address the promise with pending trade agreements with Colombia, Panama and South Korea. All three were drawn up and signed under President George W. Bush, but Congress has yet to ratify any of them.

Obama and other Democrats have opposed the Colombia and South Korea trade agreements because of Colombia's record in dealing with labor leaders and their belief that South Korea hasn't done enough to open up its market to American cars.

The Obama administration appears to be moving toward eventually passing the pacts, but is still addressing those concerns. Ron Kirk, the U.S. trade representative in the Obama administration, hinted in a recent speech that he and his negotiating team are close to removing the obstacles that stand in the way of passing the Panama trade agreement. Labor and environmental standards are the focus of these negotiations.

Some other examples of the administration's focus on Obama's promise:

*The administration's 2009 Trade Policy Agenda, released in February, calls for a trade agenda that will "reflect our respect for ... our environment ... and the rights of workers."

* Kirk has emphasized on several occasions that he and his negotiating team are waiting for labor rights reforms to become permanent in countries such as Colombia and Panama before the United States signs trade agreements with them.

* In late October, the U.S. ambassador to Canada, David Jacobson, said that Obama won't open the North American Free Trade Agreement, or NAFTA, for renegotiation, but the administration is still pushing for inclusion of more stringent environmental and labor standards into the treaty.

* In September, the United States held talks with Jordanian officials about the U.S.-Jordan Free Trade Agreement. Lewis Karesh, who led the team, said "the meetings in Jordan are an important example of the United States' increased engagement on labor issues."

We'll wait and see if Obama succeeds, but in the meantime, we rate this promise In The Works.

Sources:

Global Atlanta, U.S. Trade Rep: No Timeline for Votes on FTAs, Oct. 9, 2009

Reuters, Lawmakers see trade deal chance after healthcare, Oct. 29, 2009

Canadian Press, U.S. envoy says 'side letters' on labour and environment may benefit NAFTA, Oct. 21, 2009

Office of the United States Trade Representative, Press Release, Sept. 30, 2009

Reuters, USTR Kirk sets speech on long-delayed Korea pact, Oct. 30, 2009