May 8th, 2003

By William New

National Journal's Technology Daily
 

Both Republican and Democratic members of a House subcommittee
on Thursday raised various concerns about the U.S. trade
agreements with Singapore and Chile that the Bush administration
plans to send to Congress later this year.
But at the hearing of the House Energy and Commerce Subcommittee
on Commerce, Trade and Consumer Protection, administration
officials and technology industry representatives held fast to
their strong support for the agreements.
Committee chairman Cliff Stearns, R-Fla., and Democrat Edward
Markey of Massachusetts, ranking Democrat on the
Telecommunications and the Internet Subcommittee, raised
concerns about Singaporean corporations that are majority
government-owned being able to compete in the United States.
Ralph Ives, the assistant U.S. trade representative for
Asia-Pacific affairs and lead negotiator to Singapore,
acknowledged that they could compete but said that in the
telecommunications chapter of the deal, the Singaporean
government agreed not to interfere with company operations and
to privatize the nation's telecom industry over time.
Markey also sent a letter to President Bush on Thursday calling
for adherence to World Health Organization guidelines to be
obligatory for members of the World Trade Organization (WTO). He
cited the negative impact on regional and global trade of
China's cover-up of the presence of severe acute respiratory
syndrome (SARS), and called for the United States to raise the
issue at the September WTO ministerial.
Regina Vargo, the assistant U.S. trade representative for the
Americas and lead negotiator to Chile, said that while the
administration was disappointed with Chile's failure to support
the United States in the war against Iraq, the trade deal
between the United States and Chile is moving forward.
Michelle O'Neill, the deputy assistant Commerce secretary for
information technology industries, touted the benefit of both
agreements to the U.S. high-tech industry. And officials with
the Business Software Alliance, Software and Information
Industry Association, Electronic Industries Alliance, National
Association of Manufacturers, U.S. Chamber of Commerce and
Coalition of Service Industries seconded that view.
Friends of the Earth and the AFL-CIO raised questions about the
pacts, citing issues such as the effect investment provisions
could have on labor and environmental laws. Several lawmakers
raised concerns about the possible creation of "sweatshops" on
two Malaysian islands near Singapore included in the agreement
but not subject to the same labor standards.
Janice Schakowsky, D-Ill., questioned the benefit of the deals
to U.S. workers and countered Ives' claim that 30 of 31 advisory
committees favored the agreements.
Others raised concern about a lack of enforcement of existing
agreements and the length of time it takes for international
dispute settlement. Rep. C.L. Otter, R-Idaho, strongly
criticized the time it has taken to address South Korea's
subsidization of the semiconductor firm Hynix.
Michigan Republican Fred Upton, chairman of the subcommittee on
Telecommunications and the Internet Subcommittee, said he would
"look closely" at the agreement to ensure that U.S. businesses
are not disadvantaged in e-commerce and to ensure that domestic
telecom policy still has necessary "wiggle room" for future
change.