The report also concluded that the agreement is not likely to have a significant impact on animal or plant health in the United States due to "invasive species" being introduced.

The report, issued by the U.S. Trade Representative's office, is required as part of any bilateral trade deal being negotiated by the United States government.

USTR is now accepting public comments on the 112-page report.

Once a free-trade agreement between the United States and Chile is completed, the environmental impact statement will be part of the pact to be reviewed by Congress.

The incorporation of environmental and labor standards into trade agreements has become one of the most contentious components of those agreements.

On forestry products, the USTR report concluded a free-trade pact will bring insignificant changes in the flow of wood from Chile to the United States. As a result, USTR said there was "little expectation" of an impact on the U.S. environment in this sector.

Likewise, USTR said the free-trade agreement is "unlikely to lead to a significant change in the production of hazardous waste" or in pollutants related to metals production in the United States.

The two countries are trying to complete their negotiations soon on a free-trade agreement.

But the Bush administration wants Congress to promptly pass "trade promotion authority," also known as "fast-track," before submitting a U.S.-Chile free-trade deal to Congress.

Under trade promotion authority, Congress can approve or reject bilateral or multilateral trade agreements, but not amend them.

It's unclear whether the administration would submit a U.S.-Chile trade pact to Congress without that authority.

The U.S. House of Representatives is trying to bring TPA to a floor vote in coming days. But backers apparently are still short of votes to pass the measure.