After the U.S. House of Representatives voted by one vote last December to grant President Bush Fast Track authority to negotiate a sweeping Free Trade Area of the Americas, the White House was convinced that the issue was settled. So too were many of activists who had poured their time and energy into opposing Fast Track.
Because they are much more likely to feel the brunt of grassroots lobbying at the district level, House members have since the early 1990s been more dubious about trade deals than members of the Senate. So when the House buckled under intense rally-round-the-flag pressure from the White House in December, it appeared to many Washington observers that Bush would have what Bill Clinton did not: free reign to negotiate away workers rights, family-farm protections, environmental regulations and basic democratic principles in order to create a corporation-friendly free trade zone encompassing most of the entire western Hemisphere.
But appearances were deceiving. Fast Track ended up on the slow track in a Senate controlled by Democrats who were in no rush to do Bush any major favors. Senate Majority Leader Tom Daschle, D-South Dakota, and Senate Finance Committee chair Max Baucus, D-Montana, generally side with Wall Street against Main Street on trade issues. But they resisted White House pressure for quick action on the issue just long enough to allow critics of corporate-dictated free trade schemes to raise serious objections to letting Bush negotiate a voluminous FTAA arrangement and then force the Congress to accept or reject the deal in a simple up-or-down vote.
Even Daschle and Baucus were surprised this week when the appeal of those objections became evident. By a voice vote Tuesday, the Senate approved a major amendment to the Fast Track resolution that the Bush administration had warned could earn a presidential veto.
The amendment, written by Minnesota Democrat Mark Dayton and Idaho Republican Larry Craig, was described by its sponsors as a move to preserve the right of American businesses, workers, and farmers to challenge unfair and illegal trade practices that threaten their livelihoods and their ability to enjoy the benefits of free and fair trade. It does this by creating an exception to the bar on congressional changes to trade agreements contained in the expedited Trade Promotion Authority ratification procedure that — despite efforts by the Bush administration to change the name — is still broadly described as “Fast Track.”
Under the Dayton-Craig exception, senators would be allowed to strike any part of an FTAA pact that changes U.S. “trade remedy” rules. Often referred to as “anti-dumping laws,” trade remedy rules allow the U.S. government to protect U.S.-based producers against unfair competition from foreign corporations that “dump” goods on the U.S. market at below the price of production. The Bush administration angered many senators when, after more than 60 senators signed a letter opposing the surrender of such protections, United States Trade Representative Robert Zoellick volunteered to do just that at last year’s World Trade Organization ministerial in Qatar.