The U.S. has a new congress and boy is it hostile to the concept of free trade. Sadly, the Republicans in power were just barely there on this issue and the Democrats to a lesser extent, but not exactly absent. Now, with a Democrat-dominated House and Senate, it’s going to be very tough to get trade treaties already signed ratified.

At stake are the ratification of trade pacts with the remaining CAFTA states that haven’t got all their papers and regulations in order, with Colombia, and with Peru.

Peru’s a really important one.

This nation elected Alan Garcia on an uncertain free trade pact platform that rapidly morphed into a powerful stance in favor of free trade.

Peru’s $30 billion economy stands to become as $120 billion one, if it has as much luck with trade as Mexico did after signing free trade. Who benefits? Every single one of us, every last one. Peru gets to sell us the things it makes best and buy the things we make best. The U.S. gets to take advantage of Peru’s low costs and invest billions in the relatively small economy. Net result: the death of poverty and the rise of a middle class.

Peru is particularly special because of all the heavy lifting it’s done on Hugo Chavez.

Peru’s leaders have taken upon themselves the dirtiest job in international diplomacy.

These Peruvians – both ex-President Alejandro Toledo and now President-elect Alan Garcia, are directly confronting the loathesome dictator, Hugo Chavez of Venezuela, an absolutely filthy job, considering his propensity for threats, insults, meddling and brutality. They are confronting the monster anyway, not appeasing him, by clearly stating that he aims to use his oil money to finance handouts in the interest of damping economic growth and fostering dependency.

Again and again, brave Peru has stated this. Again and again, Peru has taken flak for it. it’s also taken meddling,

The U.S. knows this and all of a sudden, free trade has sprung to life as a U.S. policy issue. It’s the one thing we cannot afford to lose. Bloomberg reports that U.S. Trade Representative Susan Schwab says she’s gonna give top priority to Peru in this story here.

Free trade is important to every state on earth, but only in Latin America is the very issue an intellectual and political battleground. Fierce battles have been fought and won already, so those battles must not have been in vain. Latin America is very weak on even liking the idea of trade, more so than virtually any other region, even Africa, which has no argument about it. We have come so far to make Latin America a winner on free trade, it would be an extreme tragedy if we lost it all at the finish line. Hugo Chavez would be so happy. More to the point, free trade is more important for this hemisphere than elsewhere because it’s close, it’s a natural trading partner and it’s the only place that can send trouble if it is not resolved. Latin America is too close and cannot be ignored. That’s why free trade is so important a battleground in this regio.

The new Democratic congress has got to be educated into this reality. They can’t stick their heads in the sand and hope to preserve fast-disappearing labor-union jobs that are disappearing for a reason.

The one thing I worry about most in this new Congress is the future of free trade in the Americas. I hope the Democrats can learn something new on this, it will be to their advantage, too.

UPDATE: Bad news: The jellyfish now in Congress have declined to take up free trade agreements for the responsible states of our hemisphere. They have shunted it off to the next Congress, the one full of anti-free-trade Democrats. This is a bad blow to Peru and Colombia and a horrific ending to the hemisphere’s most important victory. I can’t believe how bad it is. Here is one trade rally that was cancelled as a result.

Now, we will have to fight harder than ever. Failure is not an option.