President George Bush’s decision to ask Congress to renew his fast-track trade promotion authority has surely given relief to the U.S. trading partners. The recent development at White House in this regard is a clear sign of Washington’s commitment to continue progress on trade. In fact, U.S. trade policy is now set to enter its most dangerous phase in past two decades, which can be used as an opportunity to boost domestic support for trade if the situation skillfully handled. George Bush has not much space to maneuver on this issue when the Congress is managed by the Democrats. Therefore, he has little choice but to urge Congress for the extension. In the meanwhile, meaningful progresses have been made at Davos to lease a life to global trade talks and there are signals abundantly clear that a deal would not be reached at least before the special power of Bush to negotiate the deals expires in June. On the other hand, Democrats are seems to be belligerent on this issue. Recently, Democrats indicated that that this will not be a smooth sailing for the president as they repeated that they will not endorse trade pacts with Peru Colombia and Panama unless the government responds to provisions pertaining to tightening labor and environmental protection in those countries. In case, if the Congress declines to renew the fast-track trade promotion, Bush would find it almost impossible to carry forward his legacy on trade and many deals under negotiations with many countries would go in slumber. The present circumstances suggest that the George Bush will be forced into a difficult negotiation with Congress. Even if a deal is reached, the renewal will not come without price. The democrats may link renewal of TPA to tough measures against China, reinforcement of US laws against unfair trade practices and other measures to aid US manufacturers and their employees. And of course, if these measures are linked to the renewal of TPA it will produce significant anxiety in Europe and Asia.