Three Years is Too Long for U.S. Jobs to Wait

by Patrick Kilbride

Yesterday, November 22, marked the third anniversary of the signing of the U.S.-Colombia Free Trade Agreement. Three years ago Colombia agreed to fully open up its markets to U.S. products. Yet today U.S. products sold in Colombia are still taxed at the same high rates. Since November 22, 2006, an estimated $2.4 billion in unnecessary import tariffs have been assessed against U.S. exports to Colombia (see the Colombia Tariff Ticker).

Why? Because the U.S. Congress has turned up its nose at U.S. exporters to Colombia, refusing to vote on the trade agreement.

And yet…18 years ago, Congress granted duty-free treatment to Colombian products sold in the United States (1991 Andean Trade Preferences Act). That preferential treatment is still in effect today, and was extended as recently as a year ago. Why won’t Congress give U.S. workers and businesses the same advantages it gives to Colombians?

Three years is too long. U.S. workers need jobs today. Congress can deliver by passing the U.S.-Colombia Free Trade Agreement.

Comments

[Tag44]

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[Bill Morley -- Altrius Group, LLC]

Two-way trade between the US and Colombia was nearly $25 billion in 2008, up from $17 billion in 2007. US workers benefited from being able to ship over $11 billion in manufactured goods to Colombia’s consumers.

But we could have done so much better if we didn’t have to carry the immense burden of tariff and non-tariff barriers on the backs of our workers.

A recent statistic from the Latin American Trade Coalition suggests that over $2.3 billion in tariffs have been levied against US exports to Colombia since the agreement was finalized several years ago. This “export tax” directly harms our competiveness and ability to sell products to Colombia.

American workers are paying the price for this export tax and for our government’s refusal to move ahead on this critically needed agreement. We hear empty promises about the government’s commitment to export-led growth and job creation in our economy.

Yet as we face double digit unemployment rates as far as the eye can see, government officials in Washington are turning their backs on a virtually cost-free stimulus program that will create and support tens of thousands of jobs.

Imagine what our trade relationship with Colombia would be like without the current tariff and non-tariff barriers. In the case of the US-Chile FTA, US exports to Chile have quadrupled since 2004, when the FTA took effect, to over $12 billion in 2008. The statistics are similar for our other FTA trading partners.

We could expect the same benefits from enactment of the US-Colombia FTA. But we must act quickly.

America’s competitors in Europe and Canada have moved aggressively to take advantage of US political gamesmanship and delays on the FTA. They have enacted their own FTAs with Colombia and are working to close the door on US access to many markets and opportunities in Colombia.

Opponents of the FTA express concern over worker rights and violence against union workers in Colombia. Our experience and the facts suggest a far brighter picture and demonstrate that real progress has been made and continues to be made by the Colombian government.

If our political leaders are truly interested in job creation, improved worker conditions and help for America’s businesses and farmers, they will do the right thing and support prompt enactment of the US-Colombia FTA.