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***Internal Link Cards*** PC Key to SKFTA



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PC Key to SKFTA


Even if capital isn’t key generically it is in the instance of south korea – only the president has the bully pulpit which is key to line up the votes.

LINCIOME 10 [Scott, Int'l Trade Attorney, 11/23/2010, “Should Free Traders Be Concerned about KORUS and the Short-term Prospects for US Trade Policy? "http://lincicome.blogspot.com/2010/11/should-free-traders-be-concerned-about.html]

* Second, the Seoul impasse proved without question that the Administration simply is unwilling to expend the political capital necessary to move KORUS as-is, despite the fact that (a) most congressional vote-counters have opined that the KORUS votes are there right now (and certainly will be in the 112th Congress); and (b) as I noted last week, Trade Promotion Authority ensures that no single congressman or senator, no matter how powerful, can sidetrack the FTA's implementing legislation once Obama submits it to Congress. Thus, the President has shown us that, regardless of his pro-KORUS rhetoric, he's unwilling to fight for the current agreement and needs to find a new way forward. I don't happen to think that there is such a "new way," but that doesn't mean that the White House isn't exploring every option out there - including attempts to garner support from the unlikeliest of sources (i.e., Michaud & Co.). And, like I said in point #1, if they're going to re-open the deal anyway....... * Third, over the past two years, the President has repeatedly proven himself utterly unwilling or unable to confront the protectionist wing of the Democratic Party, so why should this change now? Just because he said he supports KORUS? Come on. Just look at the depressing facts for a second. Obama has placated his anti-trade base (and their congressional muscle) on Buy American, Mexican Trucks, Chinese Chicken Imports, Section 421 (tires), Section 301 (Chinese "green" subsidies), changes to US trade remedies laws, carbon tariffs - the list literally goes on and on. He shelved his early 2009 support for the Colombia and Panama FTAs (and KORUS until last June) at the first whiff of congressional stink. He has embraced mercantilism and adopted a "trade policy" in the NEI that is as unoffensive as it is ineffectual. And when, much to the delight of free traders and the world's leaders, he finally made a "stand" on an absolute no-brainer in KORUS, he quit at the finish line with literally the whole world watching. In short, when Obama's big moment to prove us doubters wrong came, he "voted present." Again. Yet after all of this, John B. (quite condescendingly) assumes that Obama (a) really, really wants to move the KORUS agreement through Congress and (b) will grow a spine and confront Michaud & Co. in order to get that done. Maybe he will, but I'm the naive one for now having a little doubt about that? Really? Physician, heal thyself. Look, everyone knows that completing and implementing big trade agreements like KORUS or NAFTA (or the WTO's Doha Round) requires strong leadership from the top. The President alone has the platform to debunk the myriad protectionist myths out there and to champion the national interest over insular constituent politics. But in order to do this, he must have both the ability and desire to take on partisan protectionists, loudly advocate free trade, and then actually advance and implement the trade liberalization policies that he champions. Bill Clinton and George W. Bush had that ability/desire, and they backed up their rhetoric with action. So far, Barack Obama hasn't.

Fighting politics will hurt Obama’s ability to pass free trade



Ji-Sun, 11 (7/15/11 Song Ji-sun,., Ariang, “Obama Ready to Submit Korea-US FTA Bill to Congress,” http://www.arirang.co.kr/News/News_View.asp?nseq=118191&code=Ne4&category=3 html, PHS)

US President Barack Obama will soon send the free trade pact with Korea to Congress for approval. White House Chief of Staff Bill Daley said on Thursday that there is no time to waste fighting politics as usual since American business will suffer if they do not act before the August recess. Obama will have to confront Republicans over the extension of the Trade Adjustment Assistance or TAA, a retraining program for workers displaced by foreign competition. He insists on inserting the TAA into the implementation bill for Korea’s FTA to pass with two other pending trade deals with Colombia and Panama. But Republicans have objected to his plan, demanding that lawmakers be allowed to vote separately on the TAA and the trade pact. Republicans view the TAA as ineffective, while Democrats see it as a vital safety net. Although the White House is open to passing the TAA and trade deal separately, Daley added that the package will pass as a whole if no agreement on an alternative approach is made in the near future. He stressed that Congress must act soon, since Korea’s free trade deal with the European Union went into force on July 1,.. threatening the US market share in Korea. The free trade agreement between Korea and the US is expected to create or support 70-thousand jobs in the US, as tariff cuts will boost exports.

The package is a top priority for Obama-working hard to fight for it



Hoover 6/28, Portfolio (Kent H. 6/28 "A Moment of Truth on Trade" http://www.portfolio.com/business-news/2011/06/28/trade-deals-move-forward-obama-administration-national-export-strategy-2011 )PHS

President Obama got some good news today regarding his goal to double U.S. exports by 2015: A deal has been reached to advance three long-stalled free trade agreements. The Obama administration agreed to submit trade deals with South Korea, Colombia and Panama to Congress in return for legislation that would extend assistance to workers who lose their jobs as a result of globalization. “President Obama has fought for an ambitious trade agenda that doubles exports in five years, levels the playing field for American workers and reflects American values,” said White House Press Secretary Jay Carney. “As part of that agenda, he has fought for Trade Adjustment Assistance for those American workers who lose their jobs due to increased imports or outsourcing. As a result of extensive negotiations, we now have an agreement on the underlying terms for a meaningful renewal of a strengthened TAA.” “Now it is time to move forward with TAA and with the Korea, Colombia and Panama trade agreements, which will support tens of thousands of jobs.” Business groups have been urging quick passage of these trade deals, which will reduce tariffs in these countries on imports from the U.S. “For members of Congress who care about American jobs, this is a moment of truth,” said Tom Donohue, president and CEO of the U.S. Chamber of Commerce. “I urge members of both parties to seize a reasonable compromise and move the trade agenda forward. The time to act is now.” The trade deal with South Korea alone is expected to increase U.S. exports by $11 billion a year. This agreement will produce more economic growth in the U.S. than all of the nation’s last nine trade agreements combined, according to the U.S. International Trade Commission. The Colombian trade deal is expected to increase U.S. exports by more than $1 billion a year. Panama, meanwhile, is one of Latin America’s fastest-growing economies. Some groups, however, contend the trade deals will be bad for American workers. “For most Americans, what’s newsworthy is not that the administration is pushing Trade Adjustment Assistance, which effectively is a job burial insurance program, but that pushing a deal on TAA is being used as political cover to move more NAFTA-style trade agreements that will kill more American jobs in the first place, especially given our high unemployment rates,” said Lori Wallach, director of Public Citizen’s Global Trade Watch. The breakthrough on the three trade deals came as the Obama administration released its National Export Strategy for 2011. The trade deals are critical to this effort, but the heart of the effort is to get more U.S. companies, particularly small and medium-sized businesses, to tap markets in the rest of the world. Few businesses are exporting now, and most of those are exporting only to one market. Interest in export opportunities is increasing, however. Export.gov, a one-stop portal for all the assistance the government can provide potential exporters, got 325,000 hits a month in 2010, up from 200,000 in 2009. U.S. exports jumped 17 percent in 2010, the largest increase in 20 years. This growth rate has continued in 2011. At this pace, the U.S. will achieve Obama’s goal of doubling exports by 2015. Some of the credit for this increase goes to the Obama administration’s effort to coordinate their trade programs, so that any business that contacts any agency will be referred to the right program or office. Counselors at the Small Business Administration’s network of Small Business Development Centers are being trained to advise their clients on how to export. Export financing programs, both through the SBA and the Export-Import Bank, have been beefed up. Senator Mary Landrieu, the Louisiana Democrat who chairs the Senate Small Business and Entrepreneurship Committee, said she is “pleased to see that the promotion of export opportunities for small businesses continues to be a top priority for the administration.” But, she said, the administration needs to do more. For example, the SBA has yet to appoint an associate administrator to head its Office of International Trade and coordinate its export promotion activities. That position was created by the Small Business Jobs Act, which was enacted nine months ago. The SBA has designated a current agency employee to serve as acting administrator for this office, but Landrieu said that office needs the “strong leadership” that only a permanent, full-time director can provide.

Obama is getting closer to passage but still has obstacles to overcome



AP 6/28, Newswire (AP 6/28 "Breakthrough Between Congress And Obama Admin Paves Way For Free Trade Deals" http://www.vxec.com/2011/06/breakthrough-between-congress-and-obama-admin-paves-way-for-free-trade-deals/ )PHS

The Obama administration and lawmakers on Capitol Hill have taken steps toward breaking a stalemate that could clear the way for Congress to vote on three key free trade agreements, according to congressional officials and business representatives briefed on the plan. But obstacles remain to action on the trade deals pending since the George W. Bush administration. The proposal would allow for a renewal of retraining assistance for American workers who lose their jobs because of foreign competition. The Trade Adjustment Assistance Program, or TAA, would be included in legislation on a coveted trade deal with South Korea. The White House had threatened to hold up passage of the South Korea pact, along with trade agreements with Colombia and Panama, unless the retraining assistance was renewed. The officials spoke on the condition of anonymity because no formal announcement has been made. President Barack Obama frequently cites the three trade pacts as deals that would give a boost to the U.S. economy, in part by making overseas markets more widely available to American companies. The decision to link the Korean trade deal with extension of TAA could pave the way for early consideration of the three pacts by the Senate Finance Committee, chaired by pro-trade Montana Democrat Max Baucus. It remained unclear if the House Ways and Means Committee, which handles trade matters, would accept that formula for proceeding.

Obama’s political capital is critical for the passage of SKFTA



Herald 7/25/11, Korea Joongang Daily (International H. 7/25 "Ratify the Korus FTA in August" http://joongangdaily.joins.com/article/view.asp?aid=2939318 )PHS

The best option is to ratify the pact in August. If the U.S. delays ratification until September, yet presents a clear roadmap for its passage, we won’t have to postpone the ratification. The determination of President Lee Myung-bak and President Barack Obama is also crucial for a smooth ratification of the pact. The junior lawmakers of the GNP must also approach the issue as boldly as possible because our national interest is at stake. Seventy-five percent of the public supports the pact. That says it all.

Pc key.


Palmer 5-5 (Doug, Staff Writer, “Boehner says Obama push needed to pass trade deals,” Reuters, 2011, http://www.reuters.com/article/2011/05/05/us-usa-trade-boehner-idUSTRE74453V20110505)

The U.S. House of Representatives hopes to pass long-delayed free-trade agreements with Colombia, South Korea and Panama by August, House Speaker John Boehner said Thursday. "We can move pretty quickly but it's going to take help by the president as well," Boehner told reporters. Although Republicans, who now control the House, are generally pro-trade, some members of the party are skeptical of trade deals. "I do believe a lot of work will have to be done with our own members," Boehner said. In addition, a large portion of Democrats are likely to vote against the pacts, especially the Colombia agreement, which is generally seen as the most controversial of the three trade deals because of a long history of violence against union workers in the Andean country. "The president is going to have to be out there as well talking about the importance of these three agreements. We hope to have them finished by the August recess," Boehner said. U.S. Trade Representative Ron Kirk told reporters separately he was optimistic Congress would pass the three trade deals with "good bipartisan support." But talking to reporters after a speech, Kirk said it was "critical" lawmakers also renew an expanded Trade Adjustment Assistance (TAA) program to help retrain workers who have the lost their jobs because of foreign competition. "TAA is for us, again, part of the package," Kirk said. Congress approved an expanded TAA program as part of the 2009 economic stimulus bill, but it expired early this year. Efforts to renew the program failed when some Republicans in the House of Representatives objected to its cost. The beefed-up program has helped "a half a million workers and families in every state ... and it is critical that we have that program authorized at those levels," Kirk said. After striking side deals to address outstanding concerns about each of the three trade pacts, the Obama administration now has "agreements that we think are going to garner good bipartisan support," Kirk said. "We believe we can work with the leadership in the House and the Senate to get them passed," Kirk said. The trade agreements with South Korea, Colombia and Panama were signed during the administration of President George W. Bush, but they stalled in the face of Democratic opposition. Since December, the Obama administration has negotiated new auto provisions for the Korean agreement, a tax information exchange treaty with Panama and an action plan with Colombia to address longstanding US concerns about anti-union violence. Administration officials said Wednesday they were prepared to begin technical discussions with Congress on implementing legislation for all three agreements, after Colombia met initial benchmarks in the labor action plan.

Political capital is key to maintain support



Wharton 1-12 (School – UPenn, "U.S.-South Korea Trade Pact: A Turning Point for American Exports?," http://knowledge.wharton.upenn.edu/article.cfm?articleid=2671)

With Portman now in the Senate and other pro-trade Republicans in key positions -- such as new Speaker John Boehner of Ohio and Majority Whip Eric Cantor of Virginia -- it is tempting to believe that both the House and the Senate will quickly push through the Korea agreement and then move on to Colombia, Panama and other trade pacts. But everything hinges on the ability of the President to assert his leadership on the Korea deal. "The President has demonstrated leadership," says Dittrich, "and we have no reason to think that he won't continue to do so." The battle over the Korea agreement seems likely to pit Obama on one side -- along with pro-trade Republicans. On the other side will be anti-trade Democrats and Tea Party Republicans. Many leaders of the business community fear that the Tea Party will undermine their efforts to promote pro-trade initiatives by shooting down this deal and others. "You can't assume, as in the past, that a Republican Congress is entirely pro-trade," says USCIB's Mulligan. "The Republicans have developed this populist tinge, and they are focusing on the China trade" as a key target.



Pc key to skfta.

McLarty & Cunningham, 1/24 – *chief of staff to Clinton in 1993-94 and helped bring Bill Daley into the White House to lead the 1993 Nafta ratification effort, AND **Mr. Cunningham was an aide to President Clinton and to then-Sen. Joseph Biden (1/24/11, Thomas "Mack" McLarty III and Nelson W. Cunningham, “Obama's Free Trade Opportunity,” Factiva]

Now, in a few short weeks, Mr. Obama has renegotiated the U.S.-Korea free trade agreement and announced that it will be a priority in the new Congress. He has taken steps to resolve a longstanding trade dispute with Mexico over trucks that goes back to the Clinton years. And, with his selection of Mr. Daley, the president has hired the man who can make this trade revival a reality. What now? Our experience tells us that the only way to push a major trade agreement through Congress -- even one where the nominally pro-trade GOP rules the House -- is with strong and unyielding presidential leadership, a unified White House staff and cabinet, and a genuinely bipartisan approach to stakeholders and the Congress. First, the president must be fully committed. Nafta was a bipartisan success in no small part because of the personal involvement of Mr. Clinton and sometimes tortuous negotiations with members of Congress. It's true that some pork was doled out and more than one bridge was built as a result of a Nafta vote -- something they probably still understand in Chicago. Second, the White House and cabinet must be unified in pulling for passage. Everyone from Vice President Joe Biden to Secretary of State Hillary Clinton to Labor Secretary Hilda Solis and U.S. Trade Representative Ron Kirk must be fully engaged, without hesitation. Don't forget the crucial role that then-Vice President Al Gore's 1993 debate with Ross Perot played in swinging public opinion in favor of Nafta. Third, the effort must be genuinely bipartisan. We'll need scores of members from both sides to make passage possible (this is particularly true with a large tea party GOP caucus that is as yet undefined on trade). Perhaps Mr. Obama could even take a page from the 1993 playbook and bring into the White House a prominent Republican -- former U.S. Trade Representative Carla Hills, former Reagan Chief of Staff Ken Duberstein, or a former congressman such as Jim Kolbe or Chris Shays, for example -- to help quarterback the effort. Finally, the president has to show that his commitment to the U.S.-Korea free trade agreement isn't a one-off. Moderates and independents who have been spooked by an economic approach they see as veering strongly to the left are looking for signs that this president embraces their centrist views. A commitment to deficit reduction, sustained outreach to business, and a genuine embrace of trade liberalization must go hand-in-hand. Most importantly, the president should commit to advancing the pending trade agreements with Colombia and Panama right now, instead of leaving them until later as some in his administration would prefer. Why bother taking a half-measure on trade? A full-throated campaign for the Korea, Colombia and Panama trade agreements, along with WTO accession for Russia, can help reset this presidency. Capitalizing on his selection of Mr. Daley with a renewed American trade policy, Mr. Obama has the chance to remind moderates in both parties and independent voters that he is the man they voted for in 2008 -- a leader who appreciates the goals of businesses large and small, and who sees America as confident and innovative enough to remain the global economy's True North.


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