Baucus warns of impasse on Korea FTA unless Republicans agree to renew TAA

By Hwang Doo-hyong WASHINGTON, May 25 (Yonhap) -- A senior Democratic senator Wednesday threatened not to move on the pending free trade deals with South Korea, Panama and Colombia unless Republicans agree to renew funding for retraining displaced workers. "A long-term reauthorization of a robust TAA program must move in tandem with our pending trade agreements with Panama, Colombia and Korea," Senate Finance Committee Chairman Max Baucus told a committee hearing. "They must move together as a package, an agreed-upon agreement that both TAA and the FTAs will pass in this Congress. Otherwise, nothing passes. It's all or nothing." Congressional Republicans have opposed the renewal of the Trade Adjustment Assistance program for the retraining of workers displaced due to foreign competition. The program expired in February after being extended two years ago as part of Obama's stimulus plans to help the world's biggest economy rebound from the worst recession in decades. Republicans cite the need to cut the burgeoning federal budget deficit. The Montana senator was echoeing a group of 41 senators who sent a letter to U.S. President Barack Obama earlier this week to support National Economic Council Director Gene Sperling. Sperling said last week, "The administration will not submit implementing legislation on the three pending free trade agreements until we have a deal with Congress on the renewal of a robust, expanded TAA program consistent with the objectives of the 2009 Trade Adjustment Assistance law." The Obama administration early this month began technical consultations with congressional staff members on the Korea FTA and two other deals ahead of their official presentation to Congress. U.S. Trade Representative Ron Kirk has said he wants Congress to approve the Korea deal before July 1, when a similar deal between South Korea and the European Union takes effect. The Korea FTA, along with the Colombia and Panama deals, were negotiated under the Trade Promotion Authority Act of 2002, which requires Congress to vote yes or no without amendments within 90 days of the deal's submission. House Speaker John Boehner has expressed his intention to have the Korea FTA and similar deals with Panama and Colombia pass through Congress before the August recess. The Obama administration has in recent months cleared obstacles to the congressional approval of the three trade deals. Washington produced a supplemental agreement with Seoul in December to address U.S. concerns over lopsided auto trade, the biggest hurdle to congressional approval. The new deal calls for a delayed phase-out of auto tariffs in return for Washington's concessions on pork and medicine. Last month, Washington also reached a new deal with Colombia on labor rights, which have served as a stumbling block to congressional approval of the trade agreement, and another with Panama to allow exchanges of tax information to prevent tax evasion in the Latin American state, often criticized for serving as a tax haven.