October 14, 2007	Sunday	Shawwal 1, 1428

MIAMI, Oct 13: US President George W. Bush has praised the benefits of globalisation and economic competition amid signs Americans are increasingly worried about free trade ahead of elections next year.

Speaking before the Greater Miami Chamber of Commerce on Friday, Bush urged Congress to ratify the free-trade agreements signed by his administration with three Latin American countries -- Colombia, Panama and Peru.

“It is important for our country to understand, trade yields prosperity, and prosperity means people will more likely be able to find work,” Bush said.

“I urge the congressional leaders to pass these three Latin American agreements as soon as possible.”

Bush fiercely defended the accords, which will eliminate customs barriers and ensure protection for capital investments. But he also acknowledged the new agreements were generating plenty of concern.

“It is in the interest of the United States that prosperity spreads throughout Latin America and South America, and yet many of our citizens feel uneasy about competition and they worry that trade will cost jobs and I understand why,” the president said.

Recent opinion polls indicate that Americans’ support for trade liberalisation is on the decline, even among Bush’s Republican allies who originally backed the principle of free trade.

The president said that “a protectionist sentiment” was “beginning to gain strength in America and in Congress.” As a result, the ratification of the three accords with Latin American nations and a fourth one -- with South Korea -- is anything but assured.

Bush’s Democratic opponents have now gained control of Congress. And while the tug-of-war with the administration over Iraq has consumed most of their energies since January, Democrats know voter fears about losing US jobs to foreign competition will be a major factor in the 2008 elections.

These fears have been fuelled by the recent credit crunch, a rise in home foreclosures, and speculation about a possible economic recession.

The proposed removal of tariffs on South Korean cars, for example, alarms workers in the US auto industry.

The leading Democratic presidential candidate, Hillary Clinton, has already warned that the free trade agreements stand little chance in Congress.

In recent months, Bush also appeared more inclined to listen to demands by Democrats, who insist that more social and environmental guarantees be written into free trade agreements.

With dismal approval ratings, Bush is scrambling to improve his report card in his last 15 months in office.

In an interview with The Wall Street Journal published Friday, Bush sought to address the sense of economic injustice Americans feel over high executive salaries, saying he too found them excessive.

The three free trade agreements with Latin America will give US companies wider access to 75 million new consumers and a market with a combined gross domestic product $245 billion, according to the White House.

“When trade expands, American workers gain because our workers are making products for people around the world who want to buy products that say: made in the USA.”

Bush, who has made trade liberalisation a big priority of his presidency, argues free trade may offer not only economic but also political advantages like countering the influence of Venezuelan President Hugo Chavez.

“These agreements will counter the false populism promoted by some nations in the hemisphere, these agreements will strengthen the forces of freedom and democracy throughout the Americas,” Bush said.

The US International Trade Commission estimates the reduction of Korean tariffs on goods alone would likely add roughly 10-12 billion dollars to annual US GDP, the White House said.

—AFP