It Finally Happened! On October 12th, the U.S. Congress passed the implementing bills to allow the three long-stalled FTAs (Panama, Colombia and Korea) to finally come into force after five long years. Once the vote count in the House hit 219 members (after briefly pausing at 217) in favor of the first FTA to be considered, Colombia, applause broke out in the galleries, only to be rapidly admonished by security.
All three bills to implement the FTAs passed Congress comfortably, showing strong bipartisan support. The Colombia FTA passed with a vote of 262-167, Panama FTA with 300-129, and the Korea FTA with 278-151. In the Senate, the Korea FTA passed 83-15, Panama FTA 77-22, and Colombia FTA 66-33. A “poison pill” motion proposed by Rep. Levin to recommit the Colombia-FTA with instructions to the Ways and Means committee to deal with the China currency issue was overwhelmingly voted down in the House, allowing the votes to resume a normal course without jeopardizing their fast-track status. President Obama is expected to sign the FTAs into law as early as next week. Congress meanwhile was pleased that they were able to “do their portion” for the FTAs the day before the President of Korea addressed a joint session of Congress on the 13th. All of the FTAs will prove beneficial, however, the KORUS-FTA in particular is heralded as the most economically significant trade agreement since NAFTA, which was signed over 15 years ago.
Alongside the passage of these FTAs yesterday, Congress also approved the long-overdue renewal of the Generalized System of Preferences (GSP) and the Andean Trade Preference Act (ATPA) through July 31st, 2013. Both programs will be retroactive, allowing importers refunds from the date of the programs’ original expiration. Our previous coverage on this issue highlights the political rollercoaster well.
Moving forward, the issue of artificially depreciated Chinese currency will be the next political battlefield as the Administration tries to wade in very sensitive waters. With the House Speaker appearing firmly against any such measure, the Democrats, led by Sander Levin ((MI) will try to force the bill to the full House by using a “discharge petition” measure. The FTAs votes were an important moment that showcased the speed the political process can move if pushed to take action. A legion of international companies, Hill staffers and trade policy wonks are now ready to start dealing with all trade issues that have been waiting on the backburner for years.
