House approves FTA pacts for Chile, Singapore
House approves FTA pacts for Chile, Singapore
Date: Friday, July 25, 2003 1:32 PM
JOB DESTRUCTION NEWSLETTER
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House approves free trade pacts for Chile, Singapore
By Marilyn Geewax
WASHINGTON BUREAU
Friday, July 25, 2003
WASHINGTON -- The House approved free trade agreements with Chile and
Singapore on Thursday, angering labor unions but pleasing U.S.
companies that want greater access to foreign markets.
If the Senate also blesses the pacts, as is expected, Chile and
Singapore will be added to the short list of countries -- currently
Mexico, Canada, Israel and Jordan -- that can trade goods and services
with the United States with few barriers.
U.S. Trade Representative Robert Zoellick, who negotiated the accords,
said in a statement that they would "eliminate tariffs, tackle
nontariff barriers, open service markets, strengthen intellectual
property protections for our knowledge industries and enhance labor and
environmental protections."
U.S. high-tech industry groups were pleased because the agreements
include provisions to combat illegal copying of movies, music, books
and software.
"We want to cut down on the piracy so we can export more legitimate
software," said Joe Pasetti, a trade expert for the Information
Technology Industry Council, a lobbying group.
The agreements also would give U.S. companies far greater freedom to
sell advice and know-how overseas, he said, because "a lot of the
growth sectors are in computer services, consulting services and
telecom services."
But the Singapore agreement has one other feature that could help
expand trade with all of Southeast Asia. Typically under a free trade
agreement, preferential tariffs apply only to goods that follow strict
country-of-origin rules. But Singapore will be allowed to use a looser
interpretation because it is an island of about 267 square miles.
As a result, many Singapore companies assemble products in other
countries. Under the trade agreement, certain components made offshore,
largely electrical goods, will be treated as though they had been made
in Singapore.
Pasetti said high-tech companies hope that this part of the agreement
will help spread free trade enthusiasm to all of Southeast Asia.
"We're hoping the agreement in Singapore will serve as a model for
other agreements," he said.
Although high-tech companies are excited about this prospect, many
workers are skeptical.
U.S. companies "aren't going to sell more products over there; this is
not about selling phone switches," said Michael Emmons, an information
technology worker from Longwood, Fla., who belongs to the Organization
for the Rights of American Workers.
"Our government and our corporations are just intent on getting access
to cheap labor," he said.
On Tuesday, Teamsters President James Hoffa said at a Capitol Hill
press conference that lawmakers would lose union backing if they voted
for free trade.
"You are either with the American worker or against the American
worker," he said. "These agreements leave no room in the middle."
High-tech companies said they, too, would be watching the vote. The
Information Technology Industry Council said it would score votes on
the trade agreements in its High Tech Voting Guide for the 108th
Congress.
The voting guide is used by many tech executives as they decide what
lawmakers to reward with endorsements and contributions.
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Rob Sanchez is board member of NAEA - www.NAEA.US
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