US Congress pushes reforms in Pacific trade deal

WASHINGTON (AFP) - US President Barack Obama's administration is under pressure from Congress to emphasize labor rights, democratic values and market reforms in talks to forge a trans-Pacific trade deal.

A Vietnamese flag is reflected in the window of a US food giant Kentucky Fried Chicken restaurant in Hanoi (© AFP/File - Hoang Dinh Nam)

Obama's top trade official Ron Kirk met lawmakers for consultations Wednesday ahead of negotiations for the Trans-Pacific Partnership (TPP) linking the United States with an initial group of seven nations -- Australia, Brunei, Chile, New Zealand, Peru, Singapore and Vietnam.

The meeting focused on issues including labor and environmental standards, food safety, procurement rules, democracy, services deregulation and foreign investor rights, congressional aides said.

"If other countries are going to try to get their foot in the door for expanded trade here, then these nations must respond by opening their markets to the United States," said Louise Slaughter, the chairwoman of the House of Representatives rules committee.

"There must be fair and reasonable reciprocal access to all markets to bring our trade policy to a place where workers are not the primary losers," said the New York lawmaker from Obama's Democratic party.

Congress is led by Democrats, many of whom have been skeptical about free trade agreements that had been signed under Obama's predecessor George W. Bush's administration with South Korea, Panama and Columbia.

The agreements have yet to be implemented and the Obama administration is seeking renegotiations on various issues, including market access for US autos and beef with South Korea and labor issues with Colombia.

Lawmakers told Kirk at the meeting Wednesday that "issues such as democratic values, labor rights and food safety should be emphasized" at the TPP negotiations beginning in Melbourne, Australia on Monday, a congressional aide said.

"We believe it is critical to approach these negotiations as an opportunity to redefine and redirect US trade policy," said Maine Democratic lawmaker Michael Michaud, also the chairman of the House trade working group.

"We must replace the failed policies of the past with those that deliver good paying jobs for American workers and a level playing field for our businesses."

Kirk, the US trade representative, said the meeting Wednesday was "an honest, constructive dialogue aimed at finding common ground."

"Our goal, as always, is to craft job-creating proposals that serve the interests and deserve the support of elected leaders and of the citizens they represent," he said.

Obama has set a bold goal to double US exports over the next five years in a bid to support two million new American jobs at a time when unemployment is hovering near double digit levels.

The US leader wants the Trans-Pacific Partnership, the first major trade initiative under his administration, to be the engine for a "high-standard, broad-based, 21st century regional trade agreement," officials said.

US experts say more countries could eventually come aboard, including possibly Canada, Japan, Mexico and South Korea, and Malaysia.

US officials want to focus first on talks with the seven in order to establish "a baseline" for expanding the partnership, according to experts at the Peterson Institute for International Economics.

The deal will add free trade with "small" economies Brunei, New Zealand and Vietnam and upgrade existing US free trade agreements with Singapore, Australia, Peru and Chile to incorporate the new "platinum" standard on such issues as labor, environment and intellectual property, the experts said.