Technology Daily: Tech Groups Seek Quick Action On Two Trade Pacts

Technology Daily PM
Tech Groups Seek Quick Action On Two Trade Pacts
July 26, 2007
by Heather Greenfield

The U.S. High-Tech Trade Coalition is turning up the lobbying volume in its efforts to win passage of trade agreements in Panama and Peru after the August congressional recess. The group also wants agreements with Colombia and South Korea resolved over the next year.

The group of 15 tech trade associations will meet with the staff of about 50 Republican lawmakers and 60-70 Democratic House members Friday on Capitol Hill.

"Peru and Panama are good agreements, and we want to make sure they understand the other two behind them are of equal importance to us," said Ralph Hellman, a lobbyist for the Information Technology Industry Council. ITI helped organize the coalition, which includes other industry associations like AeA, the Consumer Electronics Association, the Semiconductor Industry Association and the Telecommunications Industry Association.

 Earlier this month, the group also sent a letter to House Speaker Nancy Pelosi, D-Calif.; Senate Majority Leader Harry Reid, D-Nev.; House Minority Leader John Boehner, R-Ohio; and Senate Republican Leader Mitch McConnell, R-Ky. The council said the trade agreements would help tech companies gain deeper access to international markets.

"Given the importance of global supply chains and the fact that overseas sales make up 60 percent of the high tech industry's total revenues, access to free and fair trade is imperative to the industry's total competitiveness," the letter said.

The agreements in Columbia, Panama and Peru would eliminate current tariffs of 6 percent to 8 percent on U.S. tech products. The IT market for the countries is worth $2 billion to U.S. companies, and the South Korean market for IT products is estimated at $150 billion.

 "They are important markets for us and an important foothold in a region," said Brian Peters, who handles trade issues at ITI.

Peters said having more countries join existing IT agreements that 69 countries have signed is helpful, too. The agreement with Peru, for example, would give its legislature until Jan. 1, 2008, to approve a series of international treaties on patents, trademarks and copyright protections.

The Office of the U.S. Trade Representative had expressed hope that Congress would approve the Panama and Peru deals before the August recess next week. The optimism grew in May after the administration included stronger labor and environmental provisions Democrats wanted.

But this month, Democrats indicated they may delay approval until the legislatures in those nations actually pass the stronger labor provisions, saying they don't trust the White House to enforce them.

House Ways and Means Committee Chairman Charles Rangel, D-N.Y., will travel to Panama and Peru during August to meet with legislators. Rangel said in a statement from his committee staff that he is committed to passing the trade agreements in September and the trip should help.

The tech coalition is not alone in lobbying Congress for the pacts. Peruvian President Alan Garcia has sent a letter to Pelosi asking for a House vote before Rangel's trip.