A Market for Good

Why American workers need the U.S.-Colombia free trade agreement.

BY MAX BAUCUS | APRIL 22, 2011

Done right, trade bills are jobs bills. Nowhere is this truer for American workers than with the pending U.S.-Colombia free trade agreement (FTA). Colombia is not only a strategic ally in an often-troubled region of the world, but it is also a large and growing market for the exports of U.S. farmers, ranchers, and entrepreneurs.

The U.S. International Trade Commission estimates that the Colombia FTA will increase U.S. exports by more than $1 billion a year. As the U.S. economy continues to recover, an aggressive trade agenda that includes the approval of the FTA and extension of Trade Adjustment Assistance, a program to assist American workers adjust to the demands of globalization, will have a dramatic and positive impact on job-creation here at home.

Colombia is a country of 45 million people, about the same population as South Korea, with a large and growing number of middle-class consumers. It is the second-largest market in South America for U.S. farmers and the third-largest market for U.S. manufacturers.

But while Colombia has historically enjoyed duty-free access to the U.S. market, our goods are subject to significant tariffs in Colombia. American farmers face an average tariff of roughly 30 percent in Colombia, and U.S. manufacturers face an effective tariff of 14 percent. These tariffs have hit American workers hard during the greatest recession in a generation.

The FTA would eliminate these tariffs on U.S. goods. It would reduce the cost of high-quality U.S. agricultural exports, including wheat, beef, barley, peas, lentils, and seed potatoes from my home state of Montana. And it would reduce the cost of goods produced by U.S. manufacturers that send products to Colombia, nearly 90 percent of which are small and medium-sized businesses.

But as the United States has delayed approval of the FTA, signed by U.S. President George W. Bush and Colombian President Álvaro Uribe in 2006, American exporters have lost ground in the Colombian market. Meanwhile, China and other countries are surging ahead. Over the last two years, U.S. farmers have lost $1 billion in sales to Colombia. Argentina overtook the United States last year as the largest agricultural exporter to Colombia. Since 2002, China has tripled its share of the Colombian market and is now that country's second-largest trading partner. Each day we fail to act costs jobs and dollars in the American economy.

Many U.S. supporters of the FTA have touted the political and national security benefits of the agreement. The FTA will indeed fortify relations with one of our closest allies in the world in a critical region. These benefits are key, but we cannot overlook the economic gains from this agreement. 

Alex Wong/Getty Images

 

U.S. Senator Max Baucus is chairman of the Senate Finance Committee.

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2:44 AM ET

April 23, 2011

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8:29 AM ET

April 23, 2011

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HOME SHOP

3:39 AM ET

April 23, 2011

Economic interests dictating India's foreign policy now

In past 60 years of India’s foreign policy, the successive governments were very much reluctant in establishing bilateral relations with military dictatorships anywhere across the world. However, the situation has been changed and the external affairs ministry is being driven from India’s economic interests in different countries including Home Shop. The era of globalization, and liberalisation has changed India’s old mindset to stick with rigid ideologies.

India is now placing itself well on the global path by looking beyond mere political interests just to check China’s growing influence across the globe. Indian policy makers felt it straight that there was a need to concentrate on India’s economic and energy security as well.

As a result, when saffron-clad pro-democratic Buddhist monks were protesting on the streets of Rangoon against the military junta, India’s oil minister was in Rangoon to negotiate larger role for Indian gas companies in different parts in Myanmar. This is a swift change in India’s foreign policy and the western countries are feeling the changed Indian stance now.

Despite the pressure from US and other western countries on India to influence military junta in Myanmar to accept democratic norms, the government of India opted to be remained silent and not so critical to military rulers in neighboring country. India has now a well-established policy, which is showing that economic, and security interests are now dictate foreign policy of the country.

This is great change from the stance what India’s first Prime Minister Jawaharlal Nehru wanted to fix for India’s foreign affairs department. Now, the department is the same but not the ideologies. India’s Foreign Minister Pranab Mukherjee, when visited Burma, said while questioned on India’s growing economic and military ties that India is a democracy and it wants democracy to flourish everywhere. At the same time, India is not interested in exporting our own ideology to every place. This was the real example of new pragmatism that is dictating India’s foreign policy.

We can see that on number of occasions, India has refused to react, delayed in giving any response or termed the problems as an internal matter for the countries concerned. Israel’s incursion in Lebanon last year, the Israeli blockade of Gaza, Sudan’s military authorities actions, Iran’s nuclear tussles with the US and the recent incidents in Burma are all examples of this new approach. India had also opted to say a little on violent events in the Middle East countries like Iraq.

India has developed its economic interests in these countries. About 100 Indian companies, including ONGC Videsh, have invested more than $2.5bn in Sudan. ONGC Videsh has recently built a 700km pipeline project in Sudan by breaking international guidelines on investment in Sudan. Now, the automobile giants, Tata and Maruti Suzuki are also looking for opportunities in the country.

As far as India’s interest in Iran is concerned, ONGC Videsh has sought a 20% participating interest in the Yadavaran oil fields to yield 60,000 barrels of crude per day. Syria, US has named it as a sponsor of terrorism, has also given green signals to Indian oil companies. ONGC Videsh has signed a deal to explore over 3,800 sq km in central eastern Syria for oil.
India sees Burma as its strategic gateway to the markets of East Asian countries. These investments and rising economic interests in past few years are being said as the guiding factors working behind the flexibility dictating India’s foreign policy. The flourishing economy clubbed with a growing energy demand has forced India to start looking at various options now.

 

JOHNSON.1966

9:05 AM ET

April 23, 2011

at least they offer great coffee beans

Well at least Columbia still cultivates great coffee beans. Do we trade with them on that commodity? It would be a perfect barista training job for the politicians who can't otherwise make legitimate lasting impressions. Lift the ban!

 

MORGANJAMES

11:27 AM ET

April 23, 2011

What's the deal? Why is it

What's the deal? Why is it taking so long for this to be approved?

Is there some sort of mindset in Washington that every trade deal has to screw American workers?

 

N6532L

12:45 PM ET

April 23, 2011

Read It!

“Done right, trade bills are jobs bills.”

Really?? We have more free trade agreement in place now than we have ever had. Each and every one of which has been promoted with the same lies about more jobs for Americans. How has that worked out? We have a worse economy now than we had when we had protective tariffs. Real wages of blue collar workers peaked in 1973 and are down since. All of the estimates of good things to come from FTAs has proven to be wrong, wrong, wrong! What really happens is that a few benefit while most are harmed.

The Trade Adjustment Assistance is a Band-Aid that gives little more than extra unemployment while being trained for jobs that do not exist.

“But while Colombia has historically enjoyed duty-free access to the U.S. market, our goods are subject to significant tariffs in Colombia.”

Why is that? That seems to me like the result of a trade negotiation by those who are not looking out for American workers. The same thing the new FTA is going to do. The statement is also wrong. The average tariff of American goods going into Colombia is under 10 percent.

“These tariffs have hit American workers hard during the greatest recession in a generation.”

No. In addition to being too low to have a large impact on trade they are the same tariffs that were in effect before the recession.

“The FTA would eliminate these tariffs on U.S. goods”

The FTA does no such thing. Read it! It seems to have become fashionable among Congressmen and Senators to pass legislation without bothering to read it. What you are saying here is inconsistent with the text of the treaty. In section 2 of the treaty there are two sections in Spanish “Colombia Tariff Schedule (Industrial and Textiles)” and “Colombia Tariff Schedule (Agricultural Goods)” which call for tariffs on imports from the United States of up to 80 percent. Together they contain 455 pages of tariffs.

 

SGONOTICIAS

3:56 PM ET

April 23, 2011

Excellent article

This article was very informative

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SGONOTICIAS

3:58 PM ET

April 23, 2011

 

SGONOTICIAS

3:58 PM ET

April 23, 2011

 

NED

5:14 PM ET

April 23, 2011

oil

Colombia has the best combination of fiscal regime and underexplored territory in the world, according to Jack Scott, COO of Petrominerales.

Investing could be better than buying gold coin.

Colombia could produce 1.5 million barrels of oil a day, double the current rate, in just the next five years if exploration pans out as they think it will. The number of oil rigs drilling in the country has surged in recent years.

Colombia’s oil-licensing agency is entertaining more than a billion dollars in offers from global oil companies for the rights to explore 96 blocks of territory. Already, Colombia’s biggest export is oil, and it is the third-largest producer in South America, after Venezuela and Brazil.

 

ROBMARKETING

7:58 PM ET

April 23, 2011

gas

It would be a perfect barista training job for the politicians who can't otherwise make legitimate lasting impressions. plumbing in Atlanta

 

MARKITA

3:03 AM ET

April 24, 2011

Read it & enjoy

Well at least Columbia still cultivates great coffee beans. Do we trade with them on that commodity? It would be a perfect barista training job for the politicians who can't otherwise make legitimate lasting impressions. This article was very informative.

Now I'm in vacation on a beautiful hotel in andalo, when I come back I search some other information on that theme. Mark

 

KARAN.LABRA

6:40 AM ET

April 24, 2011

I agree

I guess Columbia is a developing at a nice rate and with around 45 million people it is evident that the market is growing at an effective way.

Since Colombia could produce 1.5 million barrels of oil a day, double the current rate, in just the next five years if exploration pans out as they think it will. The number of oil rigs drilling in the country has surged in recent years.

I wish there were more shops in columbia to get my Hard Drive errors repaired.

 

KISSMP3

8:45 AM ET

April 24, 2011

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SJAEKEL

9:23 AM ET

April 24, 2011

Quality is important

Low-wage countries have always been a threat to the traditional industrial countries. With the increasing globalization and the growing together of the world the detriment of the traditional economic powers is even greater. It's so important that ways be found to make a turn but affordable products can be imported from third countries, but nevertheless its own economy is not very weak. This can be achieved that only excellent quality is produced by properly trained workers. Then all the pages required for each other's products will be.

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SJAEKEL

9:25 AM ET

April 24, 2011

Quality is important

Low-wage countries have always been a threat to the traditional industrial countries. With the increasing globalization and the growing together of the world the detriment of the traditional economic powers is even greater. It's so important that ways be found to make a turn but affordable products can be imported from third countries, but nevertheless its own economy is not very weak. This can be achieved that only excellent quality is produced by properly trained workers. Then all the pages required for each other's products will be.

Stefan von LR Parfum kaufen

 

TAHMINA

9:38 AM ET

April 24, 2011

Bali Travel

It would be a perfect barrister training job for the politicians who can't otherwise make legitimate lasting impressions.

Bali Travel

 

KARAN.LABRA

3:29 PM ET

April 24, 2011

audition

I wish there were more shops in columbia to get my Hard Drive errors repaired.

 

BUYONLINEKENYA

2:42 PM ET

April 27, 2011

Times are changing

I think the world is getting to a time when we have to carefully rethink and open up to a wider market especially where money is being lost. Gone are the day when we could make so much and NOT really bother about competition.

With the surge of internet markets things have become much tougher, competition has gone worldwide with new markets like China, it may be best for American workers to go for the U.S.-Colombia free trade agreement.

Some time back Kenya and the majority of Africa used to get good number of high end goods and services from Europe and America. Now most of these goods and services are coming from China. Even recently China investing on building roads in Africa. I think times are changing.

Watchdog

 

PERSON_NICE

2:13 AM ET

May 20, 2011

when saffron-clad

when saffron-clad pro-democratic Buddhist monks were protesting on the streets of Rangoon against the military junta, India’s oil minister was in Rangoon to negotiate larger role for Indian gas companies in different parts in Myanmar thetrafficplayerreview. It's so important that ways be found to make a turn but affordable products can be imported from third countries, but nevertheless its own economy is not very weak

 

SHIRLEE RAUDENBUSH

10:20 AM ET

May 21, 2011

A Market for Good

Why American workers need the U. S. -Colombia free trade agreement. I think the world is getting to a time when we have to carefully rethink and open up to a wider market especially where money is being lost. Gone are the day when we could make so much and NOT really bother about competition. With the surge of internet markets things have become much tougher, competition has gone worldwide with new markets like China, it may be best for American workers to go for the U. "But as the United States has delayed approval of the FTA, signed by U. S. President George W. Bush and Colombian President lvaro Uribe in 2006, American exporters have lost ground in the Colombian market. Meanwhile, China and other countries are surging ahead psychology. Over the last two years, U. S. farmers have lost $1 billion in sales to Colombia. Argentina overtook the United States last year as the largest agricultural exporter to Colombia. Since 2002, China has tripled its share of the Colombian market and is now that country's second-largest trading partner. Each day we fail to act costs jobs and dollars in the American economy. "

 

OK RIBEIRO

10:31 AM ET

May 21, 2011

What's the deal?

We can see that on number of occasions, India has refused to react, delayed in giving any response or termed the problems as an internal matter for the countries concerned. Israel’s incursion in Lebanon last year, the Israeli blockade of Gaza, Sudan’s military authorities actions, Iran’s nuclear tussles with the US and the recent incidents in Burma are all examples of this new approach. India had also opted to say a little on violent events in the Middle East countries like Iraq. lasik With the increasing globalization and the growing together of the world the detriment of the traditional economic powers is even greater. It's so important that ways be found to make a turn but affordable products can be imported from third countries, but nevertheless its own economy is not very weak. This can be achieved that only excellent quality is produced by properly trained workers.