Blue/Green Trade Provisions Ripe for Misuse

WASHINGTON, D.C. – United States Chamber of Commerce President Thomas Donohue told Senators on the Finance Committee today that labor and environmental provisions in trade agreements could be misused by foreign governments seeking leverage over American companies.

"Handing foreign governments the means to sanction U.S. companies under the guise of labor or environmental concerns will prove disastrous to American interests," said Donohue. "We must not give special interest groups here and abroad control over U.S. trade policy and – by extension – the economy."

Donohue testified that the blue/green trade provisions in the U.S. – Jordan Free Trade Agreement imperil negotiations with other trading partners as well. Other, far more important, trading partners will refuse to negotiate with the United States if the Jordan Free Trade Agreement is used as a template for future trade agreements, according to the Chamber.

While the Chamber strongly supports bilateral efforts to improve the environment and ensure improvement in the quality and conditions of workers, Donohue suggested the best way to address labor and environmental concerns is through separate, parallel efforts. The Chamber will oppose any trade agreement that includes labor and environmental provisions and accompanying sanctions in the body of the agreement.

Donohue also urged lawmakers to grant President Bush Trade Promotion Authority – negotiating authority given to every president since Gerald Ford. Access to TPA is a key element in U.S. trade negotiators' credibility.

"As anyone in business knows, you do not waste your time making deals with negotiators who are not in a position to commit their principals – whether they are in companies or countries – to an agreement," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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