U.S. Seeks Environmental Panel in Free Trade Pact

U.S., Mexican and Canadian trade negotiators are considering a Bush Administration proposal to create a joint commission that would address environmental problems stemming from the North American free trade agreement, U.S. and Mexican sources said Friday.

It is still uncertain whether such a commission will be included in the final trade pact expected to be completed by the three nations in the coming weeks, U.S. and Mexican officials said.

But the Bush Administration’s decision to push for it is evidence of the growing political pressure it faces to address the environmental concerns rising from the proposed agreement. Most of the criticism from Democrats over the Administration’s handling of the negotiations centers on labor and environmental issues. The manner in which the accord deals with those problems will be critical in determining whether Congress approves the treaty.

Trade negotiators for the three countries plan to meet in Mexico City this weekend, hoping to bring the yearlong talks to a close. U.S. officials say they doubt that a final trade accord will be reached that soon, but predict a final agreement is only a few weeks away.

The historic pact will create a gigantic, continent-wide free trade zone, a single market with 360 million consumers and $6 trillion in economic activity. It would link the United States with its largest trading partner, Canada, and its third largest, Mexico.

Critics of the Bush Administration’s handling of environmental matters in the trade talks are most concerned over whether the agreement will include some guarantees to prevent Mexico from becoming a duty-free “pollution haven” for runaway factories from the United States and Canada.

With severe pollution problems plaguing Mexico City and its border region, the environment has become a top priority in Mexican politics, and the Mexican government has recently passed strong new anti-pollution laws. But U.S. environmental groups and Democratic leaders worry that the Mexicans will not devote enough resources to improving its environmental enforcement efforts.

U.S. environmentalists also want trade negotiators to include provisions prohibiting any of the three countries from lowering their environmental standards to attract investments and jobs from the other two.

“One of our major concerns is that U.S. environmental standards not be lowered through the adoption of the trade agreement,” said Stewart Hudson, an expert on trade with the National Wildlife Foundation in Washington.

Among other proposals, the creation of a joint environmental commission is being discussed as one way to deal with such concerns, sources said.