Senate OKs Peru free-trade pact - The vote is a victory for Bush, who faces tougher battles over other agreements.
WASHINGTON — Congress gave final approval to a free-trade pact with Peru on Tuesday, handing President Bush his first victory on trade since Democrats gained the majority a year ago.
Although the Senate overwhelmingly approved the agreement, the White House faces tougher battles on the rest of its trade agenda heading into an election year in which globalization's effect on American jobs, the trade deficit and product safety are expected to be hot campaign issues.
The Senate vote on the Peru agreement was 77 to 18. But the issue divided Democrats, with 29 voting for the deal and 16 against it, including Senate Majority Leader Harry Reid of Nevada. California's Democratic senators split, with Dianne Feinstein supporting the measure and Barbara Boxer opposing it.
The House last month approved the agreement 285 to 132, with slightly more Democrats voting against it than for it, even though their leader, House Speaker Nancy Pelosi (D-San Francisco), supported it.
The measure's approval gave Bush, who has been battling Democrats over issues including the Iraq war and the federal budget, a rare opportunity to celebrate a congressional vote.
He said he looked forward to signing the agreement, noting that it "signals our firm support for those who share our values of freedom and democracy and expanding opportunity for all."
Trade with Peru is relatively small -- about $8 billion in 2006. California exported goods worth about $180 million to the Andean country. The U.S. International Trade Commission estimates that this agreement will add $1.1 billion to U.S. exports.
Supporters of the agreement have portrayed it as important for fostering good relations, promoting democracy and advancing U.S. security interests in Latin America, including countering the influence of Venezuelan President Hugo Chavez.
In a news conference Tuesday, Bush urged Congress to approve a second pending trade agreement. "The United States can make a difference in South America in terms of Venezuelan influence, and here's how: The Congress can pass a free-trade agreement with Colombia," he said.
The Peru agreement has been strongly backed by business and farm groups but opposed by some unions, including the Teamsters.
"American workers are fed up with the consequences of our reckless free-trade policies -- their good jobs vanishing," Teamsters President James P. Hoffa said after the vote. "You can bet this is an issue that won't go away before next year's election."
