Congress wary of free trade pact

The North American free trade agreement proposed by Canada, Mexico and the Bush administration faces tough sledding in Congress.

Reason: Many Democrats-backed by organized labor, the Democratic National Committee and some environmental organization- will oppose giving the talks a "fast track" status next month.

Fast track means Congress agrees in advance to give the final agreement, when it comes, a simple up-or down vote, without amendments. Some Washington observers say the fast track is crucial if an agreement is ever to get congressional approval.

Concern about five issues divide free trade agreement opponents and supporters.

• Opponents say an agreement would allow American businesses to move to Mexico to evade tougher U.S. environmental laws.

Supporters counter that an agreement will be a strong force for environmental protection. Mexico is taking steps to clean up its environment. Most large American companies, as a matter of policy, comply with Environmental Protection agency standards, wherever they are. Meanwhile, small and medium-sized U.S. companies that move to Mexico to escape tougher environmental regulations can do so already without an agreement.

While it's true some U.S. companies will move labor intensive activities to Mexico, these are the same companies that are now attracted to low-wage markets in Asia. Free trade supporters say Mexico is better than Singapore or Taiwan because of Mexico's high "feedback effect."

Feedback means the more Mexico is able to increase its standard of living, the more it can buy from the United States. Every $1 billion increase in exports to Mexico means 25,000 more jobs in the U.S.

But supporters say these problems make it more important for the United States, Canada, and Mexico to establish what would be the world's largest, richest, and youngest trading bloc. They say we should negotiate problems with Japan and Europe from a position of strength.

Supporters counter that both drug smuggling and illegal worker migration are consequences of the lack of economic opportunities in Mexico. An agreement would treat the causes.

The EC '92 process started more than 40 years ago with the establishment of the European Coal and Steel Community. It takes time. So North American free trade supporters should push ahead as they are patient with those on the wrong side of history.