Washington: PresidentGeorge Bush wants America toreduce its dependence on oil as it made the USeconomy vulnerable to extraneous factors like increase in demand in India or China.

"We can make our economy more flexible and dynamic bydiversifying our energy supply," he said delivering a report on the stateof America's economy in New York yesterday (Feb1, 2007).

"Energy is vital to businesses and farmers and familiesall across our nation. Yet, we have a fundamental problem: We are too dependenton oil. That creates vulnerabilities," Bush said outlining the challenges US faces inkeeping the economy growing.

"When demand for oil goes up in China or India,it affects the price of gasoline here in America. If a terrorist were toattack oil infrastructure, it affects the supply of energy here in America,"he said asking the Democratic Congress move forward with initiatives proposedby him.

"The idea is to diversify our energy supply, keep ourair clean and help create new jobs through new industries that will meet thedemand for alternative sources of energy," said Bush, now famous for hisphrase that America was 'addicted' to oil.

With the new Democratic majority seeking to renegotiateseveral pending free-trade agreements and progress being made to resurrectlong-stalled global trade negotiations, Bush also asked Congress to renew tradepromotion authority (TPA), otherwise known as fast track.

The existing authority, which expires July 1, allows thepresident to negotiate trade agreements and then send them to Congress for anup-or-down vote without amendment and on a strict timetable.

The administration would have to submit any agreementcovered by the existing TPA grant by Apr 2. "Presidents of both partieshave considered this authority essential to completing good tradeagreements," Bush said "I ask Congress to renew it."

"I know there's going to be a vigorous debate on trade.But walling off Americafrom world trade would be a disaster for our economy," Bush said. 

"Congress needs to reject protectionism and to keepthis economy open to the tremendous opportunities that the world has to offer,"he said.

Without TPA, foreign trade officials would be reluctant tonegotiate any trade deal with the United States, whether it be afree-trade agreement or a global trade accord, for fear that Congress would beable to alter the agreement.

Congressional Democrats have said they are unlikely toapprove pending free-trade agreements with Peru,Panama and Colombia, orany future ones, until the administration includes provisions in them requiringcountries to strengthen rules on labour rights and environmental protection.

But Republican lawmakers and US business representatives will belobbying hard for TPA, which they say is critical to gaining greater access toforeign markets.