A welcome trade victory

Just when it seemed American politicians were turning away from the free trade policies that have played a significant role in the nation's growing prosperity over the past 60 years, the House Democratic leadership did the right thing. The result, a resounding 285-132 vote to approve a free trade agreement with Peru, gives reason to believe there is a new bipartisan backing for trade expansion, with more agreements waiting in the wings.

This month's vote is good news for the U.S., which has had its share of trouble with shifting global trade patterns, including the loss of 3 million manufacturing jobs in recent years, as estimated by The Associated Press. Despite these losses, however, net national employment has increased steadily since the recession of 2000, and expanding trade has played a vigorous part in this new job creation.

Credit for the political turnaround that seems to have rescued trade policy from an impasse can be shared by both sides. President Bush did the practical thing when faced with Democratic demands for stiffer labor and environmental conditions in trade agreement — he made concessions.

House Democrats, led by Speaker Nancy Pelosi, had the equal good sense to take yes for an answer. "When I saw an opportunity for us to have labor and environmental standards as a core part of our trade agreements," she said, "it marked a drastic difference from what even a Democratic president was willing to give on that score."

President Bush said the Peru trade pact and pending agreements with Colombia and Panama, "significantly advance both our economic and national security interests." He called on Congress to "embrace the strong commitment to economic freedom" of "countries in our region" willing to embrace the free market. During the House debate, speakers noted that the trade pacts could counter the anti-market policies of Venezuelan President Hugo Chavez. Because of the challenge from Mr. Chavez, "Latin America is at a crossroads," said Rep. David Dreier, R-Calif., according to the AP.

The large margin favoring the Peru trade pact lifts hopes for the Panama and Colombia agreements. It also improves the prospects for a U.S.-South Korea bilateral trade pact. The new consensus on trade expansion could also come into play if the United States can strike an agreement in the ongoing worldwide trade expansion talks at the World Trade Organization. Congress could be willing to renew the president's expiring authority to negotiate trade agreements that cannot be amended.

Finally, the approval of the Peru trade pact is a victory for Peru's unsung hero, former President Alejandro Toledo, who completed his allowable single term in office last year, and who committed himself wholly to the new agreement. From 2001 to 2006 Peru had one of the strongest economies in Latin America, and, thanks to the legacy of President Toledo, a Stanford-trained economist, it continues to grow briskly today, in silent rebuke to Venezuela's Chavez.

The Senate should quickly follow the House in approving this desirable trade deal.