Colombia Trade Legislation Should Get a Second Chance

Press Release

In times like this, we need to focus on what government can do to get our economy back on track. Previously, I've discussed my thoughts on reducing taxes and government waste and abuse in order to free up capital. I've also shared my views on energy independence, as our reliance on foreign oil continues to shackle our economy. An additional step we can take often goes unnoticed.

Free and fair trade is vital to America's economy. In 2007, Nebraska exported more than $4.3 billion in goods and services, which included products from more than 1,100 Nebraska companies.

Last year, the U.S. exported $1.6 trillion in goods and services to countries around the world, and in the past four quarters, trade has accounted for more than half of the growth in the U.S. economy. For the first half of 2008, the United States exported $926 billion worth of goods and services, 18 percent higher than the same period in 2007. The growth in exports is frankly a bright spot in our current financial crisis.

The country of Colombia is our third-largest trading partner in South America, and its potential to purchase American goods and services is growing. Last year, Colombia's economy experienced its highest growth rate in nearly three decades.

However, a trade imbalance between U.S. exporters of agricultural and industrial products and Colombian exporters continues to stymie our full exporting potential.

While nearly all of Colombian products shipped to the United States are free from tariffs, most U.S. exports face significant tariffs or other restrictions in Colombia. In fact, American non-agricultural products face up to a 35 percent tariff when exported to Colombia, and a much higher tax for agricultural goods. For example, the tariffs on Nebraska beef entering into Colombia are currently 80 percent.

Passage of the Colombia Trade Promotion Agreement (TPA) is the only way to resolve this inequity and level the playing field in our trade relations with Colombia.

In April, President Bush submitted legislation to implement the Colombia (TPA) to Congress for approval, but the leadership of the House of Representatives have steadfastly refused to allow it to come up for a vote.

Once enacted, more than 80 percent of U.S. exports of consumer and industrial goods to Colombia would enter duty-free immediately. Upon implementation of the Agreement, the average tariff faced by U.S. exporters would be reduced by more than 68 percent, from an 11.2 percent average duty to 3.6 percent immediately.

The Colombia TPA would provide substantial new opportunities for agricultural exports as well as resolve sanitary and phytosanitary concerns. Guaranteeing the safety of Americans is a priority, and this trade agreement keeps in place barriers to unsafe products.

On April 10, 2008, the House of Representatives considered a resolution to suspend the implementation of the U.S.-Colombia Trade Promotion Agreement - an unprecedented delay tactic - indefinitely prolonging action on this critical issue.

I had held out hope the House of Representatives would have considered this legislation; however it took a backseat to the emergency economic package which dominated the final days of the 110th Session. In reality, passage of this Agreement will have a much more immediate effect on the average American's pocketbook and begin us moving in the right economic direction.

There is still a chance Congress could reconvene in mid-November, at which point the legislation might be brought up again. Whenever Congress returns to Washington D.C., I hope this agreement will have the chance to be voted on by the full House, up or down.

Passage of legislation would demonstrate U.S. support for an important ally and help cement the gains made by Colombian President Alvaro Uribe, who has worked closely with the U.S. to address concerns - including improving labor standards and environmental protections.

In 2000, much of Colombia was controlled by three terrorist groups and ruthless narcotics trafficking cartels. Through international assistance and by working with economic trading partners like the United States, Colombia has transformed itself from a country bordering on chaos to a stable, growing economy.

Fair and level trade policies promote cooperative relationships between nations and helps ensure America's competitiveness in the world's increasingly growing marketplace. Such cooperation promotes faster growth, poverty reduction, and increased democratization. And here in America, passage of this agreement will bring us closer to economic security.

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