GAO: U.S. trade pacts reap commercial benefits

GAO: U.S. trade pacts reap commercial benefits    A congressional watchdog agency's research indicates that U.S. bilateral free trade agreements, for the most part, are producing intended commercial benefits.
   The United States has entered 14 free trade agreements since 2001. The Government Accountability Office, at the request of the Senate Finance Committee, reviewed four of these free trade agreements, involving Jordan, Singapore, Chile and Morocco.
   'While varying in details, the FTAs have all eliminated import taxes, lowered obstacles to U.S. services such as banking, increased protection of U.S. intellectual property rights abroad, and strengthened rules to ensure government fairness and transparency,' the GAO said in its report.
   Overall, goods trade, especially in agricultural and manufactured commodities, between the United States and the FTA countries has grown substantially, with increases ranging from 42 percent to 259 percent, the GAO noted.
   However, the GAO said these free trade agreements have not been without some 'disappointments.' There have been potential import disruptions in several sectors in the United States, such as fruits and vegetables and cotton, 'prompting calls for U.S. agencies to continue to work with partner governments to pursue further improvements.'
   The GAO also said the four FTAs reviewed require continued progress from those countries to meet their labor and environmental commitments.    The agency called the U.S. government's level of assistance toward these issues 'limited.'
   Since last year, Congress has increasingly questioned U.S. benefits of free trade agreements. Bills have been introduced to strengthen monitoring and enforcement of FTA requirements.
   President Obama in recent months has expressed interest in moving FTAs forward with Colombia, Panama and South Korea, which were concluded by the former Bush administration. In addition, Congress may consider extending trade negotiation authority to President Obama. This authority expired in July 2007.
   The 154-page GAO report is available here.