The US presidential administration signed a free trade agreement (FTA) with Colombia on 22 November, touching off indignation among Congressional Democrats who had been seeking to have the accord modified to include tougher labour standards.

In a letter to US Trade Representative Susan Schwab on 21 November, influential Democrats warned that they may not approve FTAs with either Colombia or Peru unless they were appropriately renegotiated. After their victory in the midterm elections earlier this month, Democrats will take control in both chambers of Congress in January (see BRIDGES Weekly, 15 November 2006).

"We are dismayed that the administration has consistently declined to take the simple steps necessary to address our key outstanding concern (about the Peru agreement), which continues to be labor standards," the letter stated, adding that "our concerns apply to the Colombia agreement as well." The letter was signed by members of the House Ways and Means Committee and on the Senate Finance Committee, the Congressional bodies with jurisdiction over trade-related legislation. It was spearheaded by New York Representative Charles Rangel, who is set to become chair of the House Ways and Means Committee.

It seems increasingly unlikely that the Bush administration will try to push the two trade deals through the outgoing Republican-controlled Congress before the year's end.

Despite his qualms about the two FTAs, Rangel has indicated that he would be willing to renew the Andean Trade Preference Act (ATPA), which currently allows many of Colombia and Peru's exports to enter the US market duty-free. The unilateral preferences are scheduled to expire at the end of this year.

US trade officials have indicated that the Bush administration would consider working with the Democratic majority to add supplemental labour commitments to the FTAs, according to Washington publication "Inside US Trade." They have not, however, said that they would be open to renegotiating the agreements.

ICTSD reporting; "Democrats Urge USTR to Renegotiate Andean Trade Pacts," REUTERS, 21 November 2006; "US, Colombia Sign Landmark Free Trade Agreement," THE CALTRADE REPORT, 27 November 2006.