United States-Korea Free Trade Agreement Implementation Act--Continued

Floor Speech

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Mr. CORNYN. Mr. President, I support the approval of free trade agreements for one simple reason: they create jobs across America. And they especially create jobs in my home State of Texas.

Last year, Texas companies exported lots of products to South Korea, Colombia, and Panama, including chemical and energy products, heavy machinery and electronics, cotton and grain crops, and many others. Unfortunately, all of these products faced trade barriers in these countries through foreign tariffs amounting to hundreds of millions of dollars. These free trade agreements will level the playing field in America's favor by eliminating foreign tariffs. Each of these trade agreements also strengthens a key strategic relationship for our country. And so I would like to say a word or two about each one.

The Korea Free Trade Agreement is of strategic importance because it reminds the world that America is a Pacific nation, and that America will continue to deepen our relationships with our allies and not abandon East Asia to China or anybody else. The Korea Free Trade Agreement is the most significant on the table in terms of U.S. exports. South Korea is the most prosperous nation to sign a free trade agreement with the United States since Canada and Mexico in the 1994 NAFTA. Currently, Korean tariffs on U.S. products can be as high as 13 percent. The White House estimates that the Korean Free Trade Agreement will generate up to $11 billion in new U.S. exports and 70,000 U.S. jobs.

And a lot of that economic activity will be in Texas. Texas exported $6.4 billion in products to South Korea last year--second only to California. Our State's leading category of exports to Korea is computers and electronics, which include integrated circuits, magnetic tape, and navigational equipment. Texans also export a variety of chemicals and machinery to Korea.

The Colombia Free Trade Agreement will solidify our relationship with a crucial ally in a volatile region of our own hemisphere. Colombia has been a leader in the fight against drug trafficking and narcoterrorism. Colombia has also resisted the regional ambitions of Venezuela's Hugo Chavez. The White House estimates that the Colombian Free Trade Agreement will generate $1 billion in new U.S. exports and thousands of U.S. jobs.

In Texas, my state exported $4.4 billion in products to Colombia last year more than any other state. Those products include petroleum products, coal, chemicals, electronics, and agricultural products. Texas ranchers will especially welcome this agreement as beef currently faces the single highest tariff in Colombia at 80 percent and this trade agreement will reduce that tariff to zero. Also cotton, wheat, and almost all fruits and vegetables will become duty free immediately.

The Panama Free Trade Agreement is important because Panama is conducting one of the largest public works projects in history: expanding the Panama Canal. This project will cost $5.25 billion and provide many opportunities for construction firms and heavy equipment manufacturers in the U.S. Construction equipment and infrastructure machinery used in such projects accounted for $280 million in U.S. exports to Panama in 2010. The agreement will end tariffs on these exports, providing U.S. firms an almost immediate 5 percent price advantage on procurement contracts.

Texas exported $1.8 billion in products to Panama last year--more than any other State. Texas top exports to Panama are petroleum, coal, chemicals, and computers and other electronics.

It is clear why Congress should approve these trade agreements. What is not clear is why it has taken us so long to act. The Colombia Free Trade Agreement was signed in November 2006. The Korea and Panama agreements were signed in June 2007. Why has it taken more than 4 years to act on them?

The answer is that the leadership of Congress changed in 2007, and that leadership has been listening too much to union bosses and other special interests. Every time we seem to be close to approving these agreements, these liberal special interests have come up with a new set of demands. On May 10, 2007, the Bush White House and Congress agreed on new and more stringent labor and environment provisions. This action was supposed to allow approval for four trade agreements; however, only a pact with Peru was approved at that time. The Obama administration could have submitted the three remaining trade agreements at any time since January 2009. But new conditions kept coming.

In November 2010, we learned of new conditions regarding taxation policy in Panama. In February 2011, we learned about new conditions placed on the Korea deal regarding auto emissions standards. In April 2011, we learned about new and strikingly detailed conditions bordering on micromanagement--on the Colombian judiciary and law enforcement agencies.

And in May 2011, we learned about new demands for a little-known program called trade adjustment assistance, including the demand to dramatically expand trade adjustment assistance to cover nations the U.S. has not signed agreements with.

The time is up for demands from Washington special interests. The time is now to make U.S. jobs and U.S. exports our priority. Let's send a message of friendship to the people of South Korea, Colombia, and Panama. And let's send a message to U.S. exporters that real jobs legislation is on its way.

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