Free Trade Agreements

Floor Speech

Mr. THOMPSON of Pennsylvania. I thank my good friend from Texas for hosting this and for yielding.

I'm very proud to be here tonight, a subcommittee chairman of the Agriculture Committee, to speak to the tremendous benefits that these three free trade agreements yield for all of agriculture across the United States.

Mr. Speaker, today America's farmers and ranchers are competing in a global market in face of stiff protectionism while their foreign competitors are gaining preferential treatment and access at the American people's expense.

It's been a long time coming. While the delay was unacceptably long and likely has cost jobs, I'm pleased the Obama administration has finally done its part and sent Congress these important trade agreements, free trade agreements with Korea, Colombia, and Panama.

Many agricultural products have encountered dramatic price fluctuations in recent years, particularly dairy, as a result of depressed exports. These trade agreements will expand U.S. exports, create jobs, and bring much-needed income to communities across rural America.

These exports are increasingly important to Pennsylvania's agricultural and statewide economy. Expanding these markets for our farmers, ranchers, and small businesses across the country is a critical component of future economic growth. Overall, every sector of Pennsylvania's agriculture stands to benefit from each trade agreement.

Pennsylvania will benefit under the U.S.-Korea free trade agreement. The U.S.-Korea free trade agreement will benefit the Pennsylvania economy and create new jobs by immediately opening new access for Pennsylvania goods and services in Korea's $1 trillion economy and by establishing a level playing field in Korea for Pennsylvania workers and businesses to compete.

One-half of chemical products and many other manufactured goods produced in Pennsylvania will enter Korea duty-free immediately. Tariffs on the remaining chemical products will be eliminated over the next few years. Korean duties on major Pennsylvania agricultural products, such as grape juice, wine, and many dairy products, will be eliminated immediately. Mushrooms will become duty-free within 5 years. Simplified and expedited customs procedures will enable Pennsylvania businesses to reach Korean customers more quickly and with less redtape.

Full implementation of the Korea trade agreement could generate nearly 280,000 new jobs, including 9,963 in Pennsylvania alone.

Pennsylvania will benefit under the U.S.-Colombia Free Trade Agreement. Under the Colombia Free Trade Agreement, more than half of U.S. agricultural exports to Colombia will become duty-free immediately, and the remaining eliminated within 15 years. Colombia will eliminate its price band system which affects key U.S. exports, including corn, wheat, dairy, pork, and poultry. Tariffs of $202 million in U.S. processed food product exports, which are currently as high as 20 percent, will be immediately eliminated. Colombia is actively pursuing and implementing free trade agreements with a number of other trading partners. With every day that we don't act on this agreement, foreign competitors take market share from American farmers and ranchers.

Pennsylvania will benefit under the U.S.-Panama Free Trade Agreement. Panama is one of the fastest expanding economies in Latin America, with 7.5 percent growth in 2010. Panama is already an important market for America's farmers and ranchers. In 2010, the United States exported more than $450 million of agricultural products to Panama. More than half of U.S. agricultural exports to Panama will become duty-free immediately. Remaining tariffs will be removed over 15 years. Panama's tariffs on poultry range from 5 percent to 260 percent. Some of these will immediately drop to zero, and others will be phased out within 15 years.

I am so pleased that we're moving ahead with what will be great for agriculture and great for jobs in this country with these three free trade agreements. Mr. Chairman, thank you so much for hosting this tonight.

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