U.S Trade Representative Ron Kirk appeared before the Senate Finance Committee Wednesday to formally present the President’s 2010 Trade Policy Agenda, and as expected, express support for passage of the three long-pending free trade agreements (FTAs) with Colombia, Korea and Panama were high on the agenda for Senators.

“The FTA’s are a priority,” Kirk told the lawmakers. “We have not given up on any of those.” (Kirk’s statement.)

The ambassador was challenged by both Chairman Baucus and Ranking Member Grassley, who warned him that the United States will lose out to our competitors in Europe and other nations if we don’t advance the pending FTAs with Colombia, Korea and Panama. The goal of doubling exports in five years will be strongly aided by passing these pending FTAs, Kirk heard more than once.

As far as that competition from Europe and other countries, the European Union is certainly not letting any grass grow under its feet. On Tuesday, the EU announced the start of FTA negotiations with Vietnam. On Wednesday, the EU announced the start of FTA negotiations with Singapore. And, of course, the EU is looking to enact its FTA with Korea in the next few months.

The U.S. has an FTA with Singapore, and Vietnam would be included in the Obama Administration’s proposed Trans-Pacific Partnership (TPP) FTA –- the first round of negotiations for the TPP begins in mid-March.

This news all comes on the heels of the announcement by the EU Tuesday that it has concluded its FTA negotiations with Colombia and Peru, and is looking to a May 2010 signing with entry into force by 2012.

Colombia is also nearly finished negotiating an FTA with Canada.

Canada, by the way, is negotiating an FTA with the European Union. And, of course, Canada and Korea are negotiating an FTA too.

There seems to be a trend here: Strong manufacturing countries, whose industries compete with manufacturing in America for exports to these markets, are all fiercely pursuing trade deals with the same group of nations. If past trends continue, once they conclude negotiations, Europe and Canada will move quickly to enact these agreements. So will Peru, Colombia, and Korea.

House Republican leaders on Thursday sent a letter to President Obama expressing their agreement with his statements of support for expanding U.S. exports to create jobs. Excerpt:

Bipartisan support for implementing trade agreements with Colombia, Panama and South Korea already exists. In the interest of supporting American job creation, we ask that you jump-start the implementation process through your leadership, particularly by promoting all of these pending trade agreements when you speak to the nation in your State of the Union address. We offer our full support for your efforts and look forward to an opportunity to work steadfastly with you to implement each of these agreements as close to the start of next year as possible.

From The Washington Post, “Jobs summit underscores dilemma“:

Obama says he does not have the money for the plan many of his liberal supporters say packs the biggest employment punch — direct federal investment in job creation. Instead, he came close to embracing a to-do list for the private sector that sounded rather familiar: weatherization, small-business incentives, regulatory and other help for exporters, and tax credits for employers who hire new workers.

Obama said the proposals could create jobs immediately, while providing long-term benefit at a relatively small expense to the federal government. “Overall, we generated a lot of important ideas,” he said. “Some of them, I think, can translate immediately into administration plans and, potentially, legislation.”

Regulatory and other help for exporters? U.S. Export-Import Bank Chairman Fred Hochberg co-chaired one of the break-out sessions, “Expanding Job Opportunities for America’s Workers Through Exports,” and the NAM believes the Eximbank is an important, effective supporter of private-sector exporters. Indeed, the head of one company that works effectively with the Eximbank is quoted in the Post story. Air Tractor of Olney, Texas, a manufacturer of ag planes (for purposes like spraying and seeding), has been featured as an Eximbank success story as it reaches into South American markets. (PPT slide from Eximbank’s 2009 conference.)

David Ickert, a senior executive of Air Tractor, a Texas firm that manufactures planes used in agriculture and fire suppression, said he would like to see the administration do more to free up financing for export-oriented firms.

“Exporting is one of the areas that has a lot more potential,” he said. “It can create jobs and does not cost a lot of money to fund. There just has not been enough attention paid to it from a policy standpoint.

Right!

The lack of attention — or rather, effort — has also been a problem with the three free trade agreements still pending which, if enacted, would quickly lower trade barriers to U.S. exporters. The White House should lead its export-related jobs creation by demanding Congressional approval of the FTAs with Colombia, Panama and South Korea.

During a question and answer period today with members of the National Association of Manufacturers, Secretary of Commerce Gary Locke acknowledged the U.S. loss of market share as a consequence of not enacting U.S. trade agreements with South Korea and Colombia. Secretary Locke:

What is interesting to note is that, for instance, on the Korea trade agreement, the European Union has signed a tentative agreement with Korea, and it will result in substantial market entry for companies from Europe, and the longer we wait to pass an agreement, to ratify an agreement with Korea, the more the relationships between Korean entities and European counterparts will have been solidified. And of course, once you have a business relationship, you’re not just going to jettison that relationship just because someone else is new knocking on your door.

And so we need to finalize that agreement as quickly as possible and try to get it to the Hill. But there are a few outstanding issues that most everyone knows about and we need to address that, and Ambassador Kirk is eager to do that.

Quite frankly, we know that many in Canada and others are going to have unparalleled access to Colombia, and Colombia has been a terrific partner and ally with the United States on a whole host of issues. And so we know that the longer we wait, that the harder it is for the American companies to catch up.

Right!

Secretary Locke’s comments were prompted by a question from a construction equipment manufacturer who noted the Panama Canal expansion project and the huge size of the Colombian market for the company’s products, especially in the mining industry.

This Sunday, November 22, marks the third anniversary of the signing of the U.S.-Colombia Free Trade Agreement. And yes, indeed, the waiting becomes increasingly difficult to justify, especially since the bipartisan agreement between the Bush Administration and Congress in May 2007 addressed the environmental and labor issues previously used to reject the pending FTAs.

Most observers believe the votes are there in Congress to enact the U.S.-Colombia and U.S.-Panama free trade agreements, and most probably for the U.S.-Korea pact, as well. It’s up to the President to submit the agreements to Congress for action.

UPDATE (4 p.m.): For context, the Secretary’s comments before the above quote:

The leaders of the G-20 meeting in Pittsburgh might make headway in promoting world prosperity by reducing trade barriers and encouraging aggressive exporters like Germany and China to focus more on consumption, but after they have come and gone, our domestic challenges will remain. We are struggling to emerge from the longest and deepest recession since The Great Depression, and though there are signs of recovery, we are not out of the woods yet.

Manufacturing as always is a bellwether for the economy. The manufacturing dynamic where raw materials are forged into finished products is where our economy creates wealth. When the economy turns down and consumers lose confidence, manufacturing is first to feel the contraction. To date, one half of the jobs lost in the recession have been in manufacturing and construction, with most in manufacturing. Right now, the manufacturing capacity utilization rate is 65 percent, which means 35 percent of our capacity is idle. Until our factories are working full throttle again, the economy will continue to struggle.

Of course, when the economy comes out of recession, employment is the last thing to turn around. The unemployment rate is still climbing, albeit at a slower rate, and will likely top 10 percent by mid-2010. We don’t expect to start seeing meaningful improvement in employment until 2011. And consumers without jobs are unlikely to return to the marketplace. (See the NAM’s 2009 Labor Day report.)

In the long term, between now and 2014, we expect to see up to a million manufacturing jobs return, but that will depend at least in part on decisions made in Washington that will have tremendous impact on our ability to grow our economy and put people back to work.

Regrettably, our government today is focused not on making manufacturing more competitive and encouraging growth, but rather on priorities that - so far at least - seem likely to increase the cost of production. As currently being discussed, reforms to our health care system and climate change legislation would greatly increase the cost burdens of manufacturers who already shoulder a 17 percent disadvantage compared to our major trading partners.

Our greatest opportunities for growth lie beyond our borders. A full 95 percent of the world’s consumers are not in the U.S. To grow and prosper, we need a much larger commitment to increasing exports. Yet our government cannot bring itself to enact the free trade agreements with Panama, Colombia and South Korea that would greatly expand exports and create jobs.

We can all wish the G-20 attendees in Pittsburgh well. But in the final analysis, our economic future will not be determined in Brussels or Beijing, it will be determined in Washington. And so far, our leaders are not rising to the challenge.

A nice summary by the National Center for Policy Analysis, “Trade Action — Or Inaction: The Cost for American Workers and Companies.” Excerpt:

The United States has completed negotiations of three free trade agreements (FTAs) that await Congressional approval of implementing legislation. The United States signed FTAs with Colombia on November 22, 2006, with Panama on June 28, 2007, and with Korea on June 30, 2007. Congress has not yet taken up any of these agreements.

Other major trading partners are also in the process of negotiating FTAs with Colombia and Korea:

• Canada completed negotiation of an FTA with Colombia and submitted it on March 26, 2009, for approval by the Canadian House of Commons.
• Canada completed negotiations of an FTA with Panama on August 11, 2009.
• The European Union (EU) and Korea concluded negotiations on July 14, 2009, for a comprehensive FTA that is expected to be signed in late 2009 and implemented in 2010.

The European Union has held several negotiating rounds for a free trade agreement with Colombia that may also include Peru and Ecuador.

Meanwhile, “Colombia Accepts Canadian Beef Of All Ages.”

As for South Korea, the National Association of Manufacturers did submit a comment letter to the U.S. Trade Representative’s office expressing strong support for the U.S.-Korea FTA while noting that NAM member companies had raised serious objections to Korea’s non-tariff barriers and its handling of vehicles and automotive products.

From President Obama’s joint news conference Monday with Colombia’s president, Alvaro Uribe. President Obama:

We discussed, most prominently, the interests of both countries in moving forward on a free trade agreement.  This is something that has been discussed for quite some time.  I have instructed Ambassador Kirk, our United States Trade Representative, to begin working closely with President Uribe’s team on how we can proceed on a free trade agreement.  There are obvious difficulties involved in the process and there remains work to do, but I’m confident that ultimately we can strike a deal that is good for the people of Colombia and good for the people of the United States.

Indeed it IS something that has been discussed for quite some time. At some point, soon, the President will need to say, “I call on Congress to enact the U.S.-Colombia Free Trade Agreement,” or the discussions will go on ad infinitum.

Delay might be a defensible strategy if the goal is to satisfy U.S. political constituencies like organized labor, but it does nothing for the U.S. exports and the economy. In the meantime, other countries like Canada will gain market share in Colombia at U.S. expense.

President Uribe of Colombia meets with President Obama in the White House Monday. The Obama Administration has embraced trade as an impetus for exports and jobs, much more than one would have expected based on the 2008 campaign rhetoric. U.S. Trade Representative Ron Kirk especially has emerged as a consistent and clear advocate of trade agreements to boost the U.S. economy.

Now it’s time for the President to be just as clear, by making this statement: “I call on Congress to enact the U.S.-Colombia Free Trade Agreement as soon as it returns to Washington from the Fourth of July break.”

For more, see this paper from the Heritage Foundation, “President Obama and Colombia’s Uribe Meeting: A Pivotal Hemispheric Encounter.” The National Association of Manufacturers has a fact sheet and materials on the U.S.-Colombia FTA here.

KMEG: Johanns: US needs to approve trade agreement with Colombia

KCAU: Johanns: Obama needs to ask for trade authority

From VOA, “Venezuela Seizes Assets of 60 Oil Services Companies“:

The Venezuelan government has seized the assets of 60 local and foreign-owned oil services firms.

Venezuelan President Hugo Chavez announced the seizures Friday, saying they were authorized under a law passed Thursday by the National Assembly.

Among the firms whose assets were taken is Oklahoma-based Williams Companies, which said the government took control of two natural gas facilities. The company said it is seeking repayment of millions of dollars in services fees owed by state-run companies in Venezuela.

More on the attack on Williams’ property rights in the Tulsa World here.
Wouldn’t it be a good time for the White House and Congress to move forward on a trade agreement that supports a democratic ally in the troubled region of socialist caudillos? That is, Colombia?

The Administration is planning meetings soon with Colombia on the FTA. From Reuters, May 5, “U.S. presses on Panama, Colombia deals”