May 11, 2007

U.S. Agrees to Link Free Trade to Labor/Environmental Protections

Link: Bush and Democrats in Accord on Trade Deals - New York Times.

This is major news.

The Bush administration reached  agreement on Thursday with the House speaker, Nancy Pelosi, and other Democrats to attach environmental and worker protections in several pending trade accords, clearing the way for early passage of some pacts and improving prospects for others.

The unusual agreement, which came after weeks of negotiations, would guarantee workers the right to organize, ban child labor and prohibit forced labor in trading-partner countries. It would also require trading partners to enforce environmental laws already on their books and comply with several international environmental agreements.

While the understanding was a victory for Democrats, it also represented a shrewd compromise by the White House. The agreement is the first major bipartisan economic deal to emerge since Democrats took control of Congress in January. It has immediate importance for four countries — Colombia, Panama, Peru and South Korea — that are seeking to enter into trade pacts with the United States.

But officials in Washington predicted that the agreement’s effect would go beyond those countries and could be a template for all trade deals, including a possible worldwide accord.

Posted by Anupam Chander on May 11, 2007 at 11:20 AM in Globalization | Permalink