Tag: U.S.-Colombian Free Trade Agreement

Inaction on Free Trade Agreements is Costing U.S. Jobs

A raft of reports appeared this week on the failure of the U.S. Congress to move on free trade agreements. Jobs are supposed to be an economic and political priority, right?

Christian Science Monitor, “US losing jobs as free trade agreement languishes, Colombia says“:

Foreign trading partners who have had to endure the American view that a free-trade agreement with the United States is worth waiting for have a message for the US: Your glacially slow pace of ratifying FTAs is costing you exports, and jobs.

The latest warnings from a would-be free-trade partner come from Colombia. Its free-trade agreement with the US has languished since 2006, awaiting congressional approval.

Colombia’s minister of trade and tourism, Luis Plata, has been in Washington this week to bring these facts to bear (again, via CSM):

  • US exports to Colombia are falling.
  • Neighbors in the hemisphere – from Canada to Brazil and Argentina – are happily taking up the slack.
  • Once market share is lost, experience shows, it becomes difficult to regain.

Reuters’ Doug Palmer also has the story, “Uribe pushes for U.S. trade vote before leaving office.”

Colombia’s pending trade agreement should enjoy broad respect and support not just because its aids U.S. exporters, but because it is a democracy and U.S. ally that has assiduously fought terrorism and international drug trafficking. It’s an “exporter of security,” as Defense Secretary Robert Gates recently noted.

See also The Boston Globe, “Colombia offers lessons for US aid efforts elsewhere“:

With billions of dollars in military and development aid from the United States, Colombia’s image as one of the most dangerous destinations is fading. And now, the Obama administration is hoping to transfer key elements of Colombia’s strategy to other nations in the region struggling with drug violence, lawlessness, and crushing poverty.

 

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State of the Union: Welcome Focus on Trade, Action to Follow?

From the President’s State of the Union:

[We] need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)

That’s a welcome target to achieve export-driven growth, and it’s notable that the President regards the export controls issue important enough to warrant a mention.

Correctly so, the NAM believes. The new Milken Institute study, “Jobs for America,” concludes “modernizing U.S. export controls could increase exports in high-value areas. By 2019, these policy adjustments could enhance real GDP by $64.2 billion (0.4 percent), create 160,000 manufacturing jobs, and heighten total employment by 340,000.” The in-depth analysis is here.

The President also reaffirmed the Administration’s oft-stated belief in the value of trade agreements.

We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. (Applause.) And that’s why we’ll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia. (Applause.)

But let’s do more than “strengthen” — let’s ENACT. The President would have helped achieve the goal he had just set by calling on Congress to enact the U.S.-Colombia Free Trade Agreement, the U.S.-Panama Free Trade Agreement, and the U.S.-Korea Free Trade Agreement.

As NAM President John Engler said in a press briefing Monday, “”We believe we absolutely have the votes for the Panama and Colombia agreements.” And… “We think if they’re serious on the jobs front, they have to look at trade. We’ve got a lot of companies that send a big amount of their production abroad for sale.”

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John Engler: For More Jobs, Enact U.S.-Colombia Free Trade Pact

John Engler, president of the National Association of Manufacturers, has an op-ed marking the third anniversary of the signing of the U.S.-Colombia Free Trade Agreement. From The Bradenton Herald, “U.S.-Colombia free trade pact will boost employment, if passed“:

With unemployment topping 10 percent nationally, President Obama has increasingly stressed the importance of manufacturing and U.S. exports in creating jobs.

In an early November meeting with his Economic Recovery Advisory Board, the president called for “mechanisms that we can start putting in place where we see the kind of growth that used to characterize the U.S. economy — export-driven growth, manufacturing growth.”

One mechanism is already in place, and in fact, has been for three years: the U.S.-Colombia free trade agreement. If exports and jobs are truly priorities, it’s time for the White House to finally submit the agreement to Congress for enactment.

The argument is especially timely this week as President Obama holds a White House jobs forum. A Reuters headline characterized the goal, “Obama jobs forum to seek growth boost on the cheap.” Enacting a Free Trade Agreement with Colombia certainly fills the bill.

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President Obama and Latin American Leaders

With all the fuss about Venezuela’s caudillo Hugo Chavez greeting to President Obama at the Summit of the Americas, it’s worth noting that Colombia’s president, a believer in democracy and free markets, also met with President Obama. From Bloomberg:

Colombian President Alvaro Uribe said he talked with Obama at the summit about a U.S. trade agreement that has been stalled by Obama’s fellow Democrats in Congress and the future of Plan Colombia, the country’s anti-narcotics program funded with more than $600 million a year in U.S. aid.

“We found a great willingness to advance our bilateral agenda,” Uribe said April 18.

And President Obama mentioned Presidente Uribe in passing in his statement and news conference.

So that was good. Was there more? Not that we saw in an admittedly undisciplined weekend review of the news, at least in the U.S.-based media.

This Colombian English-language website, Colombian Reports, offered more detail in the column, “Uribe’s unplanned power lunch with Obama,” which notes that President Obama eschewed all bilateral meetings.

Uribe seemed to have lost his chance for a one-on-one and rather ended up scheduled to meet with Obama at the same time as the other South American presidents. Once again, Chávez took the spotlight while Uribe sat calmly.

But Colombia and the United States had a thing or two to discuss (think Plan Colombia, Free Trade Agreement, still being BFFs). Uribe, in what only seems to be the most overt foreign policy expression of his paisa drive, ended up sitting right next to Obama during a lunch amongst all of the nations’ leaders.

By the end of a 45-minute one-on-one conversation, Uribe had gotten what he wanted. He received his first invitation to Washington, effective immediately, and as if that weren’t enough, he got Obama to promise to visit Colombia.

Now we’re talking.

One hopes more than even talking.

UPDATE (11:45 a.m.): Yes, indeed. After the NAM’s international folks reported the weekend saw significant developments vis a vis Colombia, we went back and found this report: “Obama Tells Official to Resolve Colombian Trade-Pact Obstacles“: “President Barack Obama has ordered his top trade official to work with Colombia to resolve obstacles preventing completion a U.S. free-trade agreement with the South American country.” So that’s good and good.

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