KEY POINTS:
WASHINGTON - The United States is crippled in world trade talks and other trade negotiations because the White House has lost key legislative authority, a top US trade official said.
"We need TPA (trade promotion authority), frankly, to be able to negotiate effectively," Deputy US Trade Representative Karan Bhatia told reporters after meetings this week with Taiwan trade officials.
Although the United States and Taiwan could start talks soon on a bilateral investment agreement, the loss of TPA makes it unrealistic for the two countries to even think about negotiating a comprehensive free trade pact, Bhatia said.
"The obvious legal barrier to any FTA (free trade agreement) being negotiated at this point is the absence of trade promotion authority," he said.
That legislation, also known as fast track, expired on June 30. It allowed the White House to negotiate trade agreements that Congress could only approve or reject without making any changes. The theory behind it is other countries won't negotiate seriously if Congress can pick apart the final deal.
As it became apparent the legislation would expire without an extension, US trade officials insisted they could still negotiate in world trade talks as long as fast track was renewed before a deal was submitted to Congress.
But Bhatia said on Wednesday that renewal of the legislation was "pretty clearly a necessary prerequisite to us being able to be effective in trade negotiations, be they multilateral, regional or bilateral."
Democratic leaders in Congress have ruled out any early renewal of trade promotion authority. Many Democrats elected to Congress for the first time last year are sceptical of trade deals, which they believe lead to job losses at home.
The Bush administration still wants Congress to renew trade promotion authority. But until that happens, the United States won't be starting new free trade talks with any trading partner, Bhatia said.
- REUTERS