Monday
May122008
Senators urge passage of Colombia Free Trade Agreement
Monday, May 12, 2008 at 5:34PM
Today the Brookings Institution held a discussion on “The Economic and National Security Implications of the U.S.-Colombia Free Trade Agreement,” featuring addresses by Senators Chuck Grassley (R-Iowa) and Kit Bond (R-Mo.). Both senators advocated passage of the agreement, with Grassley emphasizing that there was “no downside.” He supported his claim by stating that 39 of the top 50 U.S. newspapers have published editorials in favor of the agreement, while the other 11 have not expressed opinions and none have said that Congress’s refusal to vote on the issue and put it in “cold storage” was favorable.
Grassley said that with U.S. exports accounting for 40 percent of economic growth last year, the nation should do everything in its power to increase exports--especially in the face of a declining economy. Bond displayed a chart that demonstrated that the U.S. pays 5 to 35 percent in duties on all exports to Colombia, while Colombia pays zero to 4 percent on its exports to the U.S. If the agreement were passed, Bond said, the U.S. would no longer pay any tariffs on items like automobiles, furniture, fuel and coal, cotton, metal products, and computer products.
The senators addressed concerns about violence in Colombia, especially towards union members, that some opponents of the agreement have cited as a reason to delay its passage. Grassley said that President Uribe has made “massive strides” towards decreasing violence, and Bond said that murders have decreased by 40 percent from 2001 to 2007, and 80 percent among union members. Grassley said that there is “no reason” that striking down the agreement would reduce violence, and that it might do the opposite by creating more job opportunities.
When asked about the possibility of waiting for a broader free trade agreement negotiated by the World Trade Organization, Bond said that “ultimately we’d love to see the WTO function,” but the current bilateral agreement is “the best we’ve got.” Grassley added, “if you’re for free trade, you take it wherever you can get it.”
Grassley said that with U.S. exports accounting for 40 percent of economic growth last year, the nation should do everything in its power to increase exports--especially in the face of a declining economy. Bond displayed a chart that demonstrated that the U.S. pays 5 to 35 percent in duties on all exports to Colombia, while Colombia pays zero to 4 percent on its exports to the U.S. If the agreement were passed, Bond said, the U.S. would no longer pay any tariffs on items like automobiles, furniture, fuel and coal, cotton, metal products, and computer products.
The senators addressed concerns about violence in Colombia, especially towards union members, that some opponents of the agreement have cited as a reason to delay its passage. Grassley said that President Uribe has made “massive strides” towards decreasing violence, and Bond said that murders have decreased by 40 percent from 2001 to 2007, and 80 percent among union members. Grassley said that there is “no reason” that striking down the agreement would reduce violence, and that it might do the opposite by creating more job opportunities.
When asked about the possibility of waiting for a broader free trade agreement negotiated by the World Trade Organization, Bond said that “ultimately we’d love to see the WTO function,” but the current bilateral agreement is “the best we’ve got.” Grassley added, “if you’re for free trade, you take it wherever you can get it.”
House Democrats Call For Reform Of U.S. Trade Agreements
Members of the House Trade Working Group called on the Obama administration Wednesday to review current U.S. trade agreements and push for a trade overhaul in the upcoming World Trade Organization ministerial meeting.
“We want to work together to develop a trade agenda that we can all be proud of,” said Rep. Louise Slaughter (D-N.Y.) during a press conference.
Rep. Michael Michaud (D-Maine) and Slaughter said they want Obama to live up to campaign promises on trade by dismissing the Doha round trade liberalization talks, agreements aimed at lowering trade barriers for developing countries, and start a compete overhaul that focuses on labor rights for American workers.
“As our nation's representatives prepare to head to Geneva, we want them to know that the trade act not only represents a way here at home, it also mirrors calls from many WTO countries to turn around the WTO,” said Michaud. “This represents exactly what many nations have called for at WTO: a review of the existing views and the will to fix what is broken.”
Earlier this year Michaud introduced a legislation that calls for a review of the North American Free Trade Agreement and the Central Free Trade Agreement. The bill has support from nearly half of the House Democratic Caucus.
“Even our trading partners are astonished that all these years we have watched our country away decline without making a peep,” said Slaughter. “We have just gave away, gave away, gave away.”
Though President Barack Obama has not addressed trade agreements recently, he will meet with the WTO general council in Geneva, Switzerland to discuss the WTO trading system and the global economic climate on Nov. 30.