US should pass Colombia, Panama trade deals-Democrat

By Doug Palmer

WASHINGTON, Jan 26 (Reuters) - The U.S. Congress should pass trade deals with Colombia and Panama, a Democratic lawmaker said on Tuesday, fueling business hopes that President Barack Obama will push for votes this year on the long-delayed pacts.

"We ought to pass them," said House of Representatives Majority Leader Steny Hoyer, one day before Obama outlines his priorities for the year in an annual speech to Congress.

Changes are needed in a third trade deal with South Korea to tear down barriers that block U.S. auto exports to that country, Hoyer said after a speech at the National Press Club.

"Basically, however, I believe that America can compete with the rest of the world if we have a level and fair trading field. So I'm one of those that believes that trade is helpful and creates jobs over the long run," he said.

The Republican administration of former President George W. Bush negotiated all three deals, but was unable to persuade the Democratic-controlled Congress to pass them.

They remain controversial. Many Democrats, including 132 House members, support legislation requiring the White House to renegotiate existing trade deals before Congress considers any new pacts.

Business groups believe there is enough support right now among other Democrats and Republicans to pass the Panama and Colombia trade deals if Obama were to send them to Congress.

"We believe we absolutely have the votes for the Panama and Colombia agreements," said John Engler, president of the National Association of Manufacturers.

He urged Obama to stress the importance of trade in his State of the Union speech on Wednesday, even if he does not specifically mention the free trade agreements.

"We think if they're serious on the jobs front, they have to look at trade," Engler said. "We've got a lot of companies that send a big amount of their production abroad for sale."

Christopher Wenk, international policy director at the U.S. Chamber of Commerce, said he hoped Obama would set a national goal of doubling exports over the next five years as part of his plans for creating new jobs. (Additional reporting by Richard Cowan and Susan Cornwell Editing by Chris Wilson)