Democrat win could curb free-trade moves
The outcome of yesterday's mid-term elections in the United States might affect that country's international free-trade initiatives if Democrats grab control of the House of Representatives, Thai officials say.
The Democrat Party is considered less friendly towards free trade, the officials believe. They consider a Democrat-controlled House would make it difficult for President George W Bush to extend his Trade Promotion Authority (TPA) - an essential tool for his administration to pass trade agreements. The director of Thailand's International Economic Affairs Department at the Foreign Affairs Ministry Virachai Plasai said the mid-term elections held yesterday had implications for US trade policy with many countries, especially where Washington remained engaged in talks. That included Thailand. Under the TPA the Congress has a yes-or-no vote only to accept trade deals and has no right to change their details. The president's authority expires in the middle of next year. With a Democrat-controlled House Bush might have difficulties convincing it to vote for an extension to the authority. Democrat members may agree to extend the TPA on condition Washington includes labour rights and environment clauses into trade agreements. These are seen as by some as protectionist measures. Even with the TPA, the House has previously found it hard to pass free trade agreements. The Central American Free Trade Agreement (Cafta) was carried in the House by a few votes only. Director-general of the Commerce Ministry's Trade Negotiations Department Chutima Bunyapraphasara said the Democrat Party would respond to its constituency - including many labour unions. Therefore, it would want to link labour and the environment with trade deals. She added the US Congress might choose to extend the TPA only to allow negotiations in the unfinished Doha Round of multilateral trade negotiations under the World Trade Organisation. It seemed unlikely talks would be wrapped up before the authority expired next year. Thai-US bilateral trade talks hinge on the TPA. Barbara Weisel, assistant US Trade Representative for Southeast Asia and the Pacific, made it clear recently Washington would suspend those talks until the Kingdom elected a new government.
Jeerawat Na Thalang The Nation
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