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A New Trade Czar March 18, 2005 Washington Post AFTER MUCH-justified criticism of its economic team, the Bush administration has named a promising trade representative. Rep. Rob Portman (R-Ohio) has a background as a trade lawyer, but his most important credentials are political. He has a strong relationship with President Bush, which increases the chances that the president will put his shoulder to the wheel on trade issues, and his ties in Congress should brighten the prospects for trade legislation. His nomination has been welcomed by key Democrats as well as fellow Republicans. "Rob Portman is well liked and well respected for his intelligence, experience and willingness to work with both sides of the aisle," said Sen. Max Baucus (D-Mont.), a sometimes reluctant supporter of free trade. The first test for Mr. Portman will be the Central American Free Trade Agreement. The United States concluded this deal a year ago with five Central American countries and the Dominican Republic, but it has yet to secure congressional passage. Enacting the agreement would provide a boost for U.S. textile makers, which ship their fabrics to Central America to be sewn into clothes, and it would help Central Americans survive the challenge from the lifting of quotas on Chinese textile and apparel exports. But the deal has a broader significance as well. Global trade talks, which promise much bigger economic benefits, are unlikely to move forward unless the Central American deal passes: Why would the Europeans or Asians make politically difficult concessions to the Bush administration if the administration seems unable to get trade deals through Congress? Moreover, failing to pass the Central American deal would signal U.S. unreliability as a partner in Latin America, just when Venezuela's oil-rich populist leader, Hugo Chavez, is trying to rally the region to the cause of anti-Americanism. To win passage for the deal, Mr. Portman must neutralize claims that it is soft on labor issues. Critics complain that the deal does not incorporate International Labor Organization standards. But they fail to note that five of the deal's signatories are committed to all eight of these standards anyway and that the real issue is enforcing them. As a condition of the deal, the Central Americans have improved enforcement somewhat, and Congress is free to advance that progress by voting aid to further strengthen enforcement. But it is perverse to complain about poor labor standards while opposing a deal that would protect jobs. Mr. Portman will also have to fight the sugar lobby. The Central American deal restricts sugar imports from the region to less than 2 percent of the U.S. market. But the sugar barons fear that this small chink will set a pre- cedent for bigger openings, and they are spending lavishly to turn votes against the deal. Precisely because this is a test case for the ability of a lobby to obstruct the broader national interest, it is essential that Mr. Portman win what looks set to be his first battle. |