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Bush Makes Case for Controversial Colombia Trade Deal; Clinton Chief Strategist Steps Down; Protests Continue Over Olympic Torch

Aired April 07, 2008 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

TONY HARRIS, CNN ANCHOR: Good morning again, everyone. You're informed, you're with CNN. I'm Tony Harris.
BETTY NGUYEN, CNN ANCHOR: And hello everybody. I'm Betty Nguyen in for Heidi Collins.

HARRIS: And the developments keep coming into the CNN NEWSROOM on Monday, April 7. Here's what's on the rundown.

NGUYEN: President Bush live this hour. He's going to put a new free trade deal on a fast track.

HARRIS: U.S. and Iraqi troops go after Shiite foot soldiers in Baghdad. Iraq's prime minister warns their leader to disband the militias or else.

NGUYEN: The blog that's covering every single murder in Los Angeles. Ganging up on crime in the NEWSROOM.

We are waiting to hear from President Bush this hour, live remarks in about 30 minutes from now. He's talking about a controversial trade deal, and why he wants quick action from Congress.

CNN's Kathleen Koch is at the White House this morning. And we're talking about a deal with Colombia, focusing on free trade.

KATHLEEN KOCH, CNN CORRESPONDENT: Yes, Betty.

Senior administration officials tell me that President Bush in the Eisenhower executive office building in just over half an hour will announce that he's sending this Colombia Free Trade pact directly to Congress now.

Now, what that does is that sets the clock ticking and forces Congress to finally take a vote on this measure within 90 days. Deputy press secretary Tony Fratto this morning called the deal "critically important." He insisted what it would do is immediately knock down terrorists for U.S. products going into Colombia right now.

Colombian products coming into the United States do not have to pay any taxes. They come in duty-free. Right now the fifth plea that the president has made over the last month for this deal. And most recently as he departed just a week ago for the NATO summit in Romania.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Congress needs to act urgently to approve the Colombian free trade agreement. The courageous ally in South America is waiting on Congress to approve an agreement that will strengthen our national security. American businesses, workers and farmers are waiting on Congress to level the playing field.

(END VIDEO CLIP)

KOCH: Now, there's a real administration full court press on this deal today, Secretary of State Condoleezza Rice advocating it again in an op-ed in the "Wall Street Journal." Up on Capitol Hill, this is not being well received. House Speaker Nancy Pelosi saying that last week she recommended against the president sending it up to the Hill.

Also, the Democratic presidential candidates Hillary Clinton, Barack Obama oppose the measure. Senator Clinton saying there should be no trade deal with Colombia while violence against trade unionists continue in that country. Senator Obama also agreed that it was "inappropriate to move forward" saying that's not the kind of behavior we want to reward -- Betty.

NGUYEN: Kathleen, the president's also meeting with business leaders later today. What's that all about?

KOCH: He's going to be meeting with small and mid-sized business owners who are going to be making new investments this year. As a result of that stimulus bill, that economic stimulus bill. The Americans are thinking about the checks coming in the mail going out in May. Another big boost to the economy they say will come from the roughly $50 billion in tax breaks that businesses will enjoy as well.

NGUYEN: Kathleen Koch live for us at the White House.

Thank you, Kathleen.

KOCH: You bet.

NGUYEN: Well, the Colombia Free Trade agreement on President Bush's agenda today, as we've been talking about, remarks in the Eisenhower executive office building this morning. We will have it for you live at 11:35 Eastern.

HARRIS: That Colombia Free Trade deal indirectly leading to a change at the top of the Hillary Clinton campaign. Mark Penn stepping down as the campaign's chief strategist. He heads a public relations firm and met with the Colombian ambassador to the United States talking about the trade deal. Senator Clinton opposes it.

Here's a closer look at the White House case for the Colombia Free Trade agreement. It's aimed at lowering tariffs on U.S. goods headed to Colombia, opening the market to American farmers and manufacturers. Senior Democrats condemn Colombia for not stamping out violent factions in the country.

Some say it's similar to NAFTA. That's the controversial agreement between the U.S., Canada and Mexico. Opponents say it has cost American workers job. Both Hillary Clinton and Barack Obama oppose the agreement and they want to see changes in NAFTA. John McCain supports both the Colombia deal and NAFTA.

Now, back to the shakeup in the Clinton campaign.

CNN's Dan Lothian is live in Philadelphia for us this morning.

Dan, good morning.

DAN LOTHIAN, CNN CORRESPONDENT: Good morning.

You know you talked about Mark Penn stepping down. There had been a lot of pressure, not only from labor unions, but from others as well. And obviously as you pointed out, there was sort of this conflict because he was advising through his PR firm, the Colombian government, and on the other hand Senator Clinton has been very much against these kinds of free trade agreements, essentially saying that there needs to be many changes with these free trade agreements.

He is still with the campaign, will still be doing some polling for the campaign. But as you mentioned will be stepping down as the strategist.

Now, you might remember, Tony, Senator Obama sort of found himself in a similar situation in February when his economic adviser was said to have met with Canadian officials and there was a sense that he gave some indication that the public stance of Senator Obama when it came to NAFTA and the private stance were two different things.

So again, NAFTA, free trade, causing some problems again on the Democratic side, Tony.

HARRIS: And Dan, let's catch everyone up on where the candidates are. We know that John McCain is in Kansas City, speaking in just a couple of minutes. What about Barack Obama today? Where is he?

LOTHIAN: I believe he's off today, not out on the campaign trail. As you know, he was campaigning over the weekend in different states. Not here in Pennsylvania, though. But, you know, the key, again, is that they're looking for toward Pennsylvania because this is the biggest prize for them.

We have all these others states and we've been pointing this out, that as they go from state to state, these are states that they normally haven't gone to in the past. But 24 delegates here, all of these small delegate states still very crucial for the big cats of course here in Pennsylvania where they will be spending quite a bit of time with just a couple of weeks to go before the primary here.

HARRIS: All right. Dan Lothian in Philadelphia for us. Dan, appreciate it. Thanks. NGUYEN: Speaking of politics, presumptive Republican presidential nominee John McCain is speaking right now to a VFW group in Kansas City, Missouri. Here's a live picture of that. We're going to listen to him live in just a few minutes. But if you want to hear him right now, you can do so by logging onto CNN.com.

Let's tell you about this. The Olympic torch relay in Paris, it's been a rough run today. It's a second day of demonstrations along the torch's international route.

CNN's Jim Bittermann is in Paris. He joins us live.

Jim, I understand at one point some of the stops on the route had to be cut short?

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Exactly. They eliminated two stops along the way. The Olympic torch was supposed to stop in front of the large studios of French television. That was canceled. And then the most important stop of the afternoon was at Paris city hall. That also had to be canceled.

Security officials making a call on the fly that the number of protests were just too much, and they didn't want to chance it with getting the torch out and going into city hall. So they drove past city hall and now they're continuing along the route they originally scheduled.

But that's about all that is taking place as scheduled. Things are running way behind schedule. Protesters have been able to put the convoy to a stop, to a halt by sitting down in front of it at some points. And by threatening the torch along the way. So it's been a rather ragged day here. A lot of chaos.

The French police had thought they would be able to keep things under control with this kind of floating bubble arrangement, with police and security agents all around. And firemen jogging alongside the torch. But that all went by the boards within the first few hundred yards as the torch hit the streets of Paris, and the protests hit the streets of Paris.

NGUYEN: Jim, we're looking at all these pictures coming to us from Paris of the protesters. You know, in seeing this, what is the government going to do about appearing at the Olympics in August?

BITTERMANN: Well, that's a good question. Basically the government has said that they are not going to make any decision about that until much later, much closer to the Olympic Games themselves. They are holding out the possibility that they could boycott the opening of the games. No one is saying that they believe the boycott should include athletes of the games themselves, involving the games themselves.

So basically there could be a protest by government officials. But that decision won't be made for some time yet. They're just not saying anything for the moment. NGUYEN: It has definitely been a rough couple of days as this torch makes its way, really around the world. This is just some of the first few stops. All right. Jim Bittermann joining us live, thank you.

HARRIS: Boy, brace yourself. Gas prices up again, a new all- time record. AAA this morning putting the average cost of a gallon of self-serve regular at about $3.34. Premium will cost you $3.67 a gallon. Diesel, about four bucks. Experts say more price hikes are on the way as refineries switch over to those spring gas blends.

Tens of thousands of jobs lost. Now this from economists. Expect more to come. Last month alone, 80,000 of you got pink slips. Now analysts are saying a recession may already be under way. And it could cost about two million jobs before things start to turn around. They're looking for unemployment to top out at around six percent. We're at about 5.1 percent now.

Today in Philadelphia, lawmakers holding a field hearing on the foreclosure crisis, predatory lending, maybe the credit crunch as well.

The White House, President Bush meets with small business owners. He will be talking about his economic stimulus package.

Let's look at the big board right now. The Dow hanging in there, up 47 points right now, NASDAQ up five. We're checking the markets throughout the morning with Susan Lisovicz in the NEWSROOM. CNN Money Team has you covered, jobs, debts, housing. The economy all this week on "ISSUE #1," noon Eastern only on CNN.

(WEATHER REPORT)

NGUYEN: We told you we'd bring it to you live. Here it is. Senator John McCain speaking to a VFW group in Kansas City, Missouri. We'll take a listen in right now. I think there's a little bit of applause. But he's going to be talking about the war in Iraq and the troops there and what the future holds for that situation.

Let's listen.

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I believe they will have the patience to allow us the time necessary to obtain our objectives. That honesty is my responsibility, and it also the responsibility of Senators Obama and Clinton as well as Democratic and Republican leaders in Congress.

Doing the right thing in the heat of a political campaign is not always the easiest thing. But when 4,000 Americans have given their lives so that America does not suffer the worst consequences of our failure in Iraq, it's a necessary thing.

In such a grave matter, we must put the nation's interests before our own ambitions. The fact is, we now have a great opportunity, not only to bring stability and freedom to Iraq, but to make Iraq a pillar of our future strategy for the entire region of the greater Middle East. If we seize the opportunity before us, we stand to gain a strong, stable Democratic ally against terrorism and a strong ally against an aggressive and radical Iran.

For the next 18 months, Iraq will conduct two landmark elections, for provincial governments and for the national government. On my most recent trip to Iraq, I met dozens of shop keepers, workers, city council officials, and others, who want Iraqis from all backgrounds to elect local leaders charged with making decisions that reflect the needs and desires of the local populations, not the preferences of Baghdad elites. If we sustain the current progress, those elections can be held in relative freedom and security for the first time since the fall of Saddam.

We should welcome a largely United Nations role in supporting the elections under the capable leadership of its special envoy, Steffan DiMaura (ph), who is already playing a key role in mediating disputes in places like Kirkuk.

Throughout this period we must continue to help the Iraqis protect themselves against the terrorists and the insurgents. We must press ahead against the radical Shiite militias and the Iranian-backed special groups and support the Iraqi government's efforts to defeat them.

We must continue to support the Sunni volunteers of the Iraqi awakening, as they stand up to al Qaeda in Iraq, especially, especially in the ongoing battle for Mosul. We must continue to build the capabilities and capacities of the Iraqi security forces, so that they can play an increasingly strong and neutral role in suppressing sextant violence.

All this, all this will require that we keep a sufficient level of American forces in Iraq until security conditions are such that our commanders on the ground recommend otherwise. It also means that we must increase levels of reconstruction assistance, so that Iraq's political and economic development can proceed in the security that our forces and Iraqi security forces provide.

Above all, it means we must once again reject, as we did in early 2007, the calls for a reckless and irresponsible withdrawal of our forces just at the moment when they are succeeding.

Economic process obviously is essential. If the security gains in Iraq are to be sustained. The once silent and deserted markets have come to life in many areas, but high unemployment rates continue to fuel criminal and insurgent violence. To move young men away from the attractions of well-funded extremists, we need a vibrant, growing Iraqi economy.

The Iraqi government can jump start this process by using a portion of its budget surplus to employ Iraqis and infrastructure projects and restoring basic services. The international community should augment Iraqi efforts by broadly enhancing the proven success of microfinance programs to stir entrepreneurships at local levels throughout the country and Iraq's Arab neighbors should invest in regional stability by using the fruits of their oil exports to directly invest in Iraq.

As these efforts begin to take hold in Iraq, it will be, as in all countries, the private sector that creates the vast majority of jobs and propels the growth that will end reliance on outside aid.

I don't want to keep our troops in Iraq a minute longer than necessary to secure our interests there. Our goal is an Iraq that can stand on its own as a Democratic ally and a responsible force for peace in its neighborhood. Our goal is an Iraq that no longer needs American troops. And I believe we can achieve that goal, perhaps sooner than many imagined, but I do not believe that anyone should make promises as a candidate for president that they cannot keep if elected.

To promise a withdrawal of forces from Iraq to the future of the Middle East, it's the height of irresponsibility. It is a failure of leadership.

I know the pain war causes. I understand the frustration caused by our mistakes in this war. And I regret sincerely the additional sacrifices imposed on the brave Americans who defend us. But I also know the toll of a lost war takes on an army, and on our country's security.

By giving General Petraeus and the men and women he has the honor to command, the time and support necessary to succeed in Iraq, we have before us a hard road. But it is the right road. And it is necessary and just.

Those who disregard the unmistakable progress we've made in the last year, and the terrible consequences that would ensue were we to abandon our responsibilities in Iraq have chosen another road. It may appear to be the easier course of action, but it is a much more reckless one, and it does them no credit, even if it gives them an advantage in the next election.

We will respect the sacrifices made by our soldiers. We all mourn the losses they have suffered in this war. But let us honor them by doing all we can to ensure their sacrifices were not made in vain. Let us show an appropriate humility by recognizing that so little is asked of us compared to the burdens we imposed on them. And let us show just a small but significant measure of their courage, resolve and patriotism by putting our country's interests before every personal or political consideration.

War is a terrible thing. You know that better than most, you who have borne the heartache and deprivations of war, so that our country might be secure in its freedom. I hold my position on Iraq not because I am indifferent to the suffering caused by this war, but because I detest war. And believe sincerely that should we fail in Iraq, we will face an even sterner test in the very near future, an even harder war, with even greater sacrifice and the heart breaking loss than we have suffered over the last five years.

It is every veteran's hope that should their children be called upon to answer a call to arms, the battle will be necessary in the field well chosen. But that's not their responsibility. It belongs to the government that called them.

NGUYEN: We've been listening to presidential candidate Senator John McCain speaking today to a VFW group in Kansas City, Missouri, as he's been talking about the war in Iraq and warning that a swift withdrawal could lead to Iraq becoming a haven for terrorists.

Now, if you would like to continue watching this live as it happens, here's what you can do. You can log onto CNN.com.

In the meantime though, there are street battles to tell you about in Baghdad.

HARRIS: Is he on the ground or on the rooftop?

NGUYEN: U.S. troops go after Shiite fighters and our correspondent is on the front lines.

(COMMERCIAL BREAK)

NGUYEN: Take a look at the big boards on this Monday morning. Look at that, the Dow is up 63 points. We understand the NASDAQ is also up today by 9 points today. There are a lot of deals in the works. Investors are looking at that positively as we are seeing both the Dow and NASDAQ in the green today. We'll keep monitoring that for you.

HARRIS: Right now, it appears fighting in Iraq, U.S. and Iraqi forces battling Shiite militias for Baghdad's Sadr City neighborhood. It is happening as General David Petraeus gets ready to brief Congress on the progress in the war.

Barbara Starr is at the pentagon. Nic Robertson is in Baghdad for us. Let's start with the violence.

Nic, good evening to you.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good evening, Tony. The very latest from the ministry of interior here in Baghdad, a missile strike, an air strike they say in the east of the city has killed nine people, wounded 35. But the fighting you're talking about going on in Sadr city where Iraqi and U.S. troops are combined fighting militias in that suburb of about two million Shia people.

According to the Ministry of Interior, nine people killed, 65 wounded in the fighting there today. The prime minister has vowed to go after the militia over the weekend on Sunday in the strongest language he has used so far in an exclusive interview with CNN, he said that Muqtada al Sadr, the cleric who leads the Mehdi militia, must disband his militia or get out of politics.

(BEGIN VIDEO CLIP) NURI AL-MALIKI, IRAQI PRIME MINISTER: A decision was taken Saturday that they have no longer the right to take part in the upcoming elections unless they end the Mehdi army. The unanimous decision made today, and this is the first time the political powers there say this. Some offing the problem comes in no other way other than dissolving the Mehdi army.

(END VIDEO CLIP)

ROBERTSON: Now, a spokesman for the Muqtada al Sadr said that the government doesn't have the right to tell the Mehdi army to disband. They're saying they will hold a huge rally on Wednesday, perhaps ten, possibly hundreds of thousands of people they plan to call out on the streets. It does appear as if the Prime Minister Nuri al Maliki and the cleric, Muqtada al Sadr, are heading for confrontation here. This has been building up over the past few weeks.

HARRIS: Nic, as I recall, there are so many militias there operating in Iraq, particularly around Baghdad. I think about the barter brigade, that comes to mind. It sounds like tough talk from the prime minister. But is disbanding the militias realistic?

ROBERTSON: That's a very, very good question. And one the prime minister is essentially banking his future on. He needs to appear strong. In Iraqi eyes, a leader needs to be strong. He's already put his credibility on the line two weeks ago by sending the government forces in against the militia. That came to a stalemate, a cease- fire.

He's renewed that threat with broad political backing. He says he's trying to play the strong leadership role here. Not just with the Mehdi militia, but the brigade as you mentioned as well. A militia, one of his political allies is telling them that all they need to disband, this could be political opportunism, but he does believe he has the support of the U.S. army to help the Iraqi army in taking on these militias.

It's a huge challenge. It may be more politically than militarily motivated. But he's in a position where he doesn't appear he can back down right now, Tony.

HARRIS: Nic Robertson in Baghdad. Nic, thank you.

NGUYEN: Let's take you to Barbara Starr who is at the pentagon. General David Petraeus takes his progress report to Congress tomorrow.

And considering the situation in Iraq, with the violence there, is it a case of bad timing?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, maybe bad timing. But maybe not the best. But it's really interesting, Betty, listening to my colleague Nic Robertson. We're seeing political optics in Baghdad and we are going to see political optics on Capitol Hill tomorrow when General David Petraeus goes before the armed services committee. It's pretty much the same deal on both sides. When Petraeus goes there, in fact, he will be meeting his new boss one way or another, Senators Clinton and McCain on the Senate Armed Services Committee, Senator Obama on Senate Foreign Relations where he will testify later in the day.

And a lot of people are going to be watching to see just how political it really gets. Will those three senators really engage in campaigning, if you will, from their Senate perches even in a very subtle fashion. General Petraeus, his part of it will be a fairly set piece.

He will say that the troops will continue to come home from the surge brigades that were sent. He will say that he wants a pause. Later in the week, we will hear that the army is going to reduce troop tours from 15 months back down to 12. All of that expected. All of that standard operating procedure.

But it's that fighting in Iraq that Nic described that everyone will be watching to see what the senators, and what General Petraeus, and Ambassador Ryan Crocker have to say about that. Because until the Prime Minister, Nuri al Maliki, can come to an agreement with the militias, or take them on and destroy them, there won't be the progress in Iraq that will allow General Petraeus to recommend even more troops come home anytime soon.

That's going to be the bottom line tomorrow. Everyone will be watching that. Everyone will be watching, I think, what these three senators have to say to the ambassador and the top commander.

NGUYEN: Absolutely they will. Barbara Starr joining us live. Thank you, Barbara. CNN will be live this week as those hearings take place. General David Petraeus delivers his progress report on Iraq and faces questions from Congress. He goes before the Senate tomorrow and the House on Wednesday. Of course, we will have live coverage right here in the newsroom.

So, be sure to join CNN on Thursday morning when President Bush addresses the nation on Iraq. And plans to reduce military tours of duty.

HARRIS: The Colombia Free Trade Agreement on President Bush's agenda today. Remarks from the Eisenhower Executive Office Building in a matter of minutes, live, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: This just in, breaking news in to CNN. The jury hearing the coroners inquest into the death of Princess Diana and her boyfriend Dodi al Fayed has reached a verdict.

Let's get to CNN's Paula Hancocks in London -- Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Tony.

Well, we have just heard that verdict from the inquest and it is a verdict of unlawful killing of Dodi Fayed, and Diana Princess of Wales. Gross negligence, driving of the following vehicles, which many of the paparazzi that were following that car, and also of the Mercedes.

Now of course, the Mercedes was the car that they were driving in when they crashed. It was Henri Paul, a Frenchman who was at the wheel. He also died in that car crash. So after six months of this British inquest, and more than ten years after the deaths of Diana and Dodi, the inquest has recorded a verdict of unlawful killing.

Now, we understand that it was a majority verdict, nine-to-two. Now, we understand that the jury, the 11-people jury, just about an hour ago, came back to the coroner and said it was very difficult for them to actually have an outright unanimous verdict. So the coroner said the time had come that he could accept this majority verdict.

And also one extra comment from the jury itself. They did say that they believed the fact that the two in the back were not wearing their seat belts, Dodi Fayed and Diana Princess of Wales not wearing those seat belts did contribute to their death -- Tony.

HARRIS: OK. Paula Hancocks Reporting for us from Buckingham Palace in London.

Paula, appreciate it. Thank you.

NGUYEN: We are waiting for President Bush to speak live today. He's going to be dealing with the subject of the Colombia Free Trade Agreement. We're waiting there as the microphones are up and ready. Speaking from the Eisenhower Executive Office Building. And there he is. Walking into the room.

Let's take a listen to what the president has to say.

BUSH: Thank you. Please be seated.

I want to thank the members of my Cabinet for joining me here today. Madam Ambassador, thank you for coming. I appreciate those who support free trade and fair trade for joining us on this important occasion.

In a few minutes, I will sign a letter to Congress that will transmit legislation implementing the United States free trade agreement with Colombia.

This agreement will advance America's national security interests in a critical region. It will strengthen a courageous ally in our hemisphere. It will help America's economy and America's workers at a vital time. It deserves bipartisan support from the United States Congress.

During the 16 months since the Colombia Free Trade Agreement was signed, my administration has worked closely with the Congress to seek a bipartisan path for considering the agreement. We held more than 400 consultations and meetings and calls.

We led trips to Colombia for more than 50 members of the Congress. We've worked closely with congressional leaders from both parties, including the speaker, Leader Hoyer and Chairman Rangel, Minority Leader Boehner, Ranking Member McCrery, and Senators Baucus and Grassley.

On May 10 last year, my administration and congressional leaders concluded a bipartisan agreement that provided a clear path for advancing free trade agreements, including the agreement with Colombia. As part of that agreement, we included the strongest labor and environmental provisions of any free trade agreement in history. Those provisions were negotiated with and agreed by -- by the leadership of Congress, like the Democratic leadership in Congress.

For the last 16 months, we've worked with congressional leaders to set a schedule for the consideration of the Colombian Free Trade Agreement. I will continue to work closely with Congress.

The need for this agreement is too urgent, the stakes for our national security are too high to allow this year to end without a vote.

By statute, Congress has 90 legislative days to complete action once I transmit a bill implementing this agreement. Waiting any longer to send up the legislation would run the risk of Congress adjourning without the agreement ever getting voted on.

Transmitting the agreement is neither the beginning nor the end of our cooperative efforts, but instead an important milestone. My administration is eager to work with members from both parties to make sure the vote is a positive one. Congress needs to move forward with the Colombian agreement, and they need to approve it as quickly as possible.

Approving this agreement is urgent for our national security reasons. Colombia is one of our strongest allies in the Western Hemisphere. They are led by a very strong and courageous leader, President Uribe. He's taken courageous stands to defend our shared democratic values. He's been a strong and capable partner in fighting drugs, crime and terror. And he's delivering results.

The Colombian government reports that since 2002, kidnappings, terrorist attacks and murders are all down substantially, as is violence against union members. Despite this progress, Colombia remains under intense pressure in the region. It faces a continuing assault from the terrorist network known as FARC, which has seized hostages and murdered innocent folks, including Americans, in an attempt to overthrew Colombia's democracy.

Colombia also faces a hostile and anti-American regime in Venezuela, which has met with FARC terrorist leaders and deployed troops to the Colombian border as a means of intimidating the Colombian government and its people.

President Uribe has stood strong against these threats, and he's done so with the assurance of America's support. Because this fight against tyranny and terror is a fight that we share. President Uribe has told members of Congress, and me as well, that approving the free trade agreement is the best way for America to demonstrate our support for Colombia.

People throughout the hemisphere are watching to see what the United States will do. If Congress fails to approve this agreement, it would not only abandon a brave ally; it would send a signal throughout the region that America cannot be counted on to support its friends.

The Canadian prime minister, Stephen Harper, has said, if the U.S. turns its back on its friends in Colombia, this will set back our cause far more than any Latin American dictator could hope to achieve.

Approving the free trade agreement will also strengthen our economy. Today almost all of Colombia's exports enter the United States duty-free, while American products exported to Colombia face tariffs of up to 35 percent for non-agricultural goods, and much higher for many agricultural products.

In other words, the current situation is one-sided. Our markets are open to Colombia products, but barriers exist to make it harder to sell American products in Colombia.

I think it makes sense to remedy this situation. I think it makes sense for Americans' goods and services to be treated just like Colombia's goods and services are treated. So it's time to level the playing field.

As soon as it's implemented, the agreement I'm sending Congress will eliminate tariffs on more than 80 percent of American exports of industrial and consumer goods. Many products in key American sectors, such as agriculture and construction equipment, aircraft and auto parts, medical and scientific equipment, will enter Colombia duty- free.

If you're an American farmer, it's in your interest that this agreement get passed. After all, farm exports like high-quality beef, cotton, soybeans and fruit will enter duty-free. In a time this agreement will eliminate tariffs on all of America's exports to Colombia.

Level the playing field for American exporters is especially important during this time of economic uncertainty. Last year exports accounted for more than 40 percent of America's total economic growth. The economy slowing recently, we should be doing everything we can to open up new opportunities for growth.

More than 9,000 American companies, most of them small and mid- sized businesses, export to Colombia. Approving this agreement will help them increase their sales and grow their businesses and create high-paying jobs.

The economic effects of expanding trade and goods and services are overwhelmingly positive. But trade can also have a negative impact for some of our citizens. In those cases, government has a responsibility to help workers obtain the skills they need to successfully reenter the workforce.

My administration is actively engaged in discussions on legislation to improve and reauthorize trade adjustment assistance program. We're committed to advancing the discussions as quickly as possible. I look forward to completing an agreement on trade adjustment that draws on many of the good ideas contained in bills introduced in the House and the Senate. I look forward to signing a good bipartisan piece of legislation.

In discussions about the Colombia Free Trade Agreement, some members of Congress have raised concerns about the conditions in Colombia. President Uribe has addressed those issues. He's addressed violence by demobilizing tens of thousands of paramilitary figures and fighters.

He's addressed attacks on trade unionists by stepping up funding for prosecutions, establishing an independent prosecutors unit and creating a special program that protects labor activists. He's made clear that the economic benefits the agreement brings to Colombia would strengthen the fight against drugs and terror by creating a more hopeful alternative for the people of Colombia. If this isn't enough to earn America's support, what is?

President Uribe has done everything asked of him. While Colombia still works to improve, the progress is undeniable, and it is worthy of our support. There's a clear model for members of Congress to follow as they move forward with this agreement. Just last year Congress considered a trade agreement with Peru that was almost identical to this one.

The only difference between them is that the Colombian government has an even greater economic potential, because Colombia's a larger market, and even greater national security importance, because of Colombia's strategic location.

Congress passed the Peru agreement with strong bipartisan support and should do the same with this agreement with Colombia. The stakes are high in South America. By acting at this critical moment, we can show a watching world that America will honor its commitments, we can provide a powerful rebuke to dictators and demagogues in our backyard, we can expand U.S. exports and export- related jobs, we can show millions across the hemisphere that democracy and free enterprise lead to a better life.

Congress' path is clear. Members should have a healthy debate, hold a timely vote, and send the bill implementing the Colombia Free Trade Agreement to my desk so I can sign it into law.

And now, I would like members of my Cabinet who are here today to join me for the signing of the letter.

Thanks for coming.

(APPLAUSE)

HARRIS: All right, there we go. The president signing the fast track, essentially pushing the button to fast track this treaty through Congress right now, giving Congress 90 days to act on it. Let's bring in Kathleen Koch at the White House.

Hey, Kathleen, this is much about really forming a strategic regional alliance, security alliance with Colombia, as it is about tariffs, isn't it?

KOCH: Well, certainly that's the case that you heard the president make. President Bush calling Colombia one of our strongest allies in the Western hemisphere, and certainly making it very clear that the U.S. sees Colombia as an important counterbalance to the anti-American rhetoric and policies of Venezuelan President Hugo Chavez.

Now the president obviously was trying to make it sound like a win-win, even pointing out that U.S. goods right now that go into Colombia face very, very high tariffs, whereas Colombian goods coming into the U.S. enter duty-free.

But there are great concerns on Capitol. The president forcing basically now this basic face-off. Congress has 90 days to vote up or down on this measure. Many Democrats, though, are quite concerned that Colombia hasn't done enough to end human rights abuses, to protect labor activists, to get rid of paramilitary organizations in the country. The president says, he President Uribe has addressed those issues. This is really one of his lengthiest pleas for this trade treaty.

So we'll see what happens. Again, the clock is ticking. But lots of Democratic opposition up on the Hill -- Tony.

HARRIS: Exactly. All right, Kathleen Koch at the White House for us. Kathleen, appreciate it. Thank you.

KOCH: You bet.

HARRIS; And John McCain back on the stump today. Taking his message to veterans and voters in Kansas city.

CNN's Mary Snow is live in Kansas City for us this morning.

Mary, for folks who are just joining us, what did the GOP's presumptive presidential nominee have to say this morning?

MARY SNOW, CNN CORRESPONDENT: Well, Tony, Senator McCain addressed Veterans of Foreign Wars, he really is making the case that more time is needed in Iraq. This, of course, one day ahead of what General Petraeus will have to say to members of Congress.

But Senator McCain said that withdrawing from Iraq would have very dangerous consequences. He named his Democratic rivals, Senators Obama and Clinton, just once, but made reference to their ideas of withdrawing from Iraq, saying if it is done too quickly, it would really lead to instability in the Middle East.

And he said, if withdrawal comes without recognizing the consequences, he says, "It is the," in his words, "height of irresponsibility and a failure of leadership." And he said the entire Middle East stability is at stake.

(BEGIN VIDEO CLIP)

MCCAIN: Our most vital security interests are at stake in Iraq. The stability of the entire Middle East, that volatile and critically important region, is at stake. The United States' credibility as a moral and political leader is at stake. How to safeguard those interests is what we should be debating.

(END VIDEO CLIP)

SNOW: Now, Tony, one thing that Senator McCain mentioned a number of times is the threat from Iran, saying it is important to have Iraq as an ally against what he called an aggressive and radical Iran.

And when questioned by reporters last night about his concern about Iranian influence, he said, even though he is concerned about it, it does not mean that he is ready to go to war with Iran. That is something that is being questioned as he keeps talking about the threat from Iraq's neighbor -- Tony.

HARRIS: Mary snow in Kansas city for us. Mary, appreciate it. Thank you.

The jury hearing the coroner's inquest into the deaths of Princess Diana and her boyfriend, Dodi al Fayed has reached -- had returned a verdict. Details coming up for you in the NEWSROOM.

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NGUYEN: All right. Let's get you more on that breaking news out of London today. We have learned that the inquest into the 1997 death of Princess Diana has been blamed on gross negligent driving by her driver, and pursuing of photographers for her fatal accident and they have ruled the death an unlawful killing.

Witnesses testified that their Mercedes, the one that she was riding in, was traveling at a high speed as it entered the tunnel, possibly to outrun paparazzi that was following the couple. It was a nine-to-two verdict followed by a lengthy coroner's inquest and nearly four days of deliberations. But they have decided that the death is an unlawful killing.

HARRIS: Bedroom TV, a new look at the health and well-being of teens who have their own televisions.

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HARRIS: Daily dose. Teens and television now -- a new study out of the University of Minnesota, it finds a correlation between bad grades and bedroom TVs for teen boys.

Listen up. Both boys and girls with TVs in their room ate fewer fruits and vegetables, girls exercised less, but the researchers say bedroom TVs had no real influence on obesity.

And to get your daily dose of health news online, the address, CNN.com/dailydose.

NGUYEN: That's interesting right there.

All right, well you know the CNN NEWSROOM does continue one hour from now.

HARRIS: "ISSUE #1" is next with Ali Velshi and Gerri Willis

I'm Tony Harris.

NGUYEN: And I'm Betty Nguyen.

We'll see you tomorrow.

(COMMERCIAL BREAK)

HARRIS: From the CNN World Headquarters in Atlanta, I'm Tony Harris.

"ISSUE #1" begins in a moment.

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