Feb. 27 (Bloomberg) -- Max Baucus, the Senate Finance Committee Chairman, came under pressure from his own state legislature to oppose extending President George W. Bush's trade negotiating authority.

The Montana legislature voted 44 to 6 late yesterday in favor of a non-binding resolution that opposes extension of the president's ``fast-track'' authority, which limits the ability of Congress to amend trade agreements.

The legislature resolved ``that the U.S. Congress be urged to create a replacement for the outdated fast track system,'' according to a copy of the legislation posted on a state Web site. U.S. trade deals should be ``developed and implemented using a more democratic, inclusive mechanism that enshrines the principles of federalism and state sovereignty,'' the resolution said.

The trade authority expires at the end of June, and Baucus, who is up for re-election in 2008, has said he wants to work with the administration to revamp and extend it. Baucus agrees with the basic concerns of the Montana lawmakers, his spokeswoman Carol Guthrie said.

``Congress must change the way trade agreements are negotiated and approved,'' Guthrie said. ``Trade can be a more powerful tool for creating jobs in this country, and the way you get there is by giving Congress a much bigger role to stand up for folks back home.''

At stake is a system of lowering trade barriers through free-trade agreements and the World Trade Organization that has added $1 trillion a year to the U.S. economy, according to an estimate by the Peterson Institute in Washington.

Worker Rights

Critics say current trade deals undercut workers' rights, give foreign governments the ability to challenge U.S. environmental regulations and limit the ability of state legislatures to take measures over land use, public health or to require the government purchase of locally made products.

As chairman of the Senate Finance Committee, Baucus will be one of the handful of lawmakers to pull together an agreement to extend fast track or kill it.

The U.S. has negotiated trade accords with Peru, Colombia and Panama, and the administration wants Congress to approve them this year. The Bush administration is also trying to wrap up a trade agreement with South Korea before the current fast- track measure expires.

U.S. Trade Representative Susan Schwab said a fast-track extension is needed to pull together a new agreement in the latest round of global trade talks at the WTO. That deal alone would add $96 billion a year to the global economy, the World Bank estimates.

To contact the reporters on this story: Mark Drajem in Washington at mdrajem@bloomberg.net

Last Updated: February 27, 2007 16:42 EST