Washington: Faced withrecord trade deficits and intense competition from rapidly growing China and IndiaUS President George Bush has made a fresh pitch for breaking down tradebarriers and energising global trade talks.

"Free-trade policies making it easier for US companiesto sell their products around the globe are an important ingredient to theeconomy's vitality," he said yesterday(Feb 13,2007)  projecting another year of good - thoughsomewhat slower - economic growth for the country.

In his annual economic report to Congress, Bush called onCongress to extend his authority to negotiate free-trade deals, a request thatis likely to face an uphill battle in the Democrat-controlled Congress.

"This authority is essential to completing good tradeagreements," Bush wrote in the introduction to the report.

"TheCongress must renew it if we are to improve our competitiveness in the globaleconomy,"he said.

Promising an aggressive push to reach a global trade pactthrough the Doharound, he said, "A free and openinternational trade regime is vital for a stable and growing economy, both hereat home and throughout the world."

"The United States will continue to work aggressivelytoward multilateral trade liberalisation through the World Trade Organization'sDoha Development Agenda negotiations," he added.

USCommerce Secretary Carlos Gutierrez, who is currently on a visit to India, has said India's traditionalleadership role in the developing world was needed to advance stalled Doha round and get a 'good agreement.'

Before leaving for New Delhi,Gutierrez told reporters here that he would press Indiafor its support at every meeting as India'sleadership is required to get a WTO agreement that will help the whole worldand will help Indiaas well.

Democrats blame Bush's free-trade policies for contributingto the trade deficit, costing US factory jobs and exposing US workers to unfaircompetition from low-wage countries.

Against that backdrop, Bush faces a daunting challenge ingetting Congress to renew the Trade Promotion Authority, also known asfast-track authority. It lets the president negotiate trade deals that Congressmust approve without amendments. That authority expires July 1.

The Bush administration argues that the way to deal with thetrade deficit is through free-trade policies that make it easier for UScompanies to do business abroad. Getting China to move to a more flexiblecurrency system, another administration goal, also would help US exporters.

Critics contend that China is keeping its currencyartificially low, giving Chinese companies a big trade advantage over UScompanies. The United Stateshas a record $202 billion trade deficit with China alone, the greatest ever witha single country.

Irked by China'scurrency and trade policies, some Democrats and Republicans in Congress want toimpose hefty tariffs on Chinese made goods flowing into the United States.

The Bush report said the outlook for the economy is strong,with moderate job growth, relatively tame inflation and steady, robust growthin productivity.

"Productivity growth is projected to average 2.6percent per year during the six year span of the budget projection - roughlyequal to the average annual pace during the past decade," it said.

Recently, foreign direct investment in the United Stateshas stagnated, the report said. The share of employment credited to foreigninvestment declined slightly between 2000 and 2004 and the share of foreigninvestment in the UScapital account has declined since 1999.

The report did not explain the reason for the decline butsaid the administration will take every step to ensure that the US economyremains open to foreign investment while making certain such investment doesnot jeopardise national security.

Foreign investors "must continue to receive fair andequitable treatment," said the report, which is prepared by thepresident's Council of Economic Advisers.