Deal to move US trade pacts possible soon, says top official

The Obama administration hopes to announce soon a deal with congressional Republicans to clear the way for votes on three long-delayed free trade agreements, the top US trade official said today.

The administration had hoped to win approval of the trade deals with South Korea, Colombia and Panama before the August congressional recess. But a disagreement with Republicans over a worker retraining program called Trade Adjustment Assistance (TAA) has threatened that.

"We are working so that we can very quickly announce a process on how we will be able to move that forward," US Trade Representative Ron Kirk said in at a speech at a gathering of insurance companies, banks, express delivery firms and other service sector businesses.

"I am still confident we are going to get these agreements passed, and we're going to get them passed sooner rather than later," Kirk said.

Republicans have objected to a White House plan to include an extension of the TAA program in the implementing legislation for the South Korea pact, and have demanded a separate vote on the legislation. But Democrats fear the program will be killed if not shielded by the South Korea pact.

Kirk said the administration is working with congressional leaders to resolve that issue.

TAA is a nearly 50-year-old retraining and income assistance program to help workers who have lost their jobs due to foreign competition.

Democrats view it as vital part of the US social safety net. Many Republicans question the program's cost and effectiveness. The White House has negotiated a bipartisan deal to reform TAA, but it has not reached a deal with Republicans on how Congress will consider the package.

Congress cannot vote on the trade deals until President Barack Obama formally submits them to Congress. Kirk did not comment on growing concern that Obama might not send the deals to Congress until after the August break.