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  • U.S. Free Trade Agreement with Colombia Enters into Force Today -- Finally!

    Following through on President Obama’s announcement last month in Cartagena that the U.S.–Colombia Trade Promotion Agreement will take effect on May 15, 2012, U.S. Secretary of Agriculture Tom Vilsack made the following statement:

    Beginning today, U.S. agricultural exporters receive duty-free access on more than half of the products we currently export to Colombia, and virtually all remaining tariffs will be eliminated within 15 years. Estimates show that the tariff reductions in the U.S.-Colombia Trade Promotion Agreement (FTA) will expand total U.S. exports by more than $1.1 billion, supporting thousands of additional American jobs while increasing U.S. GDP by $2.5 billion.

    While this is good news for American workers and the U.S. economy, what the Obama Administration failed to mention was that it had joined with its allies in Congress to block approval of the FTA with Colombia for nearly half a decade. House Ways and Means Trade Subcommittee Chairman Kevin Brady (R–TX) noted that fact in his congratulatory announcement last fall that passage had been “nearly five years in the making.” In that time, the U.S. lost its competitive advantage on billions of dollars of sales to Colombia that U.S. competitors were happy to make up.

    The U.S.-based Latin America Trade Coalition reported in September 2011 that, in the years after the U.S.–Colombia agreement was signed in November 2006 until it was finally approved in October 2011, U.S. exporters had to pay over $6 billion in tariffs to the Colombian government that would have been eliminated upon full implementation of the FTA.

    In any case, the FTA has finally been implemented, and that must be a good thing, since the far-left guerillas in Colombia chose to “celebrate” the occasion by trying to kill one of former President Alvaro Uribe’s ministers today in a deadly car bombing in Bogotá.

    With the FTA now in place, Colombia and the U.S. can look together to ever stronger ties and greater certainty that open markets and freer movements of goods, services, and investments will cement the two democratic nations together. That is reason to celebrate.

    Posted in Economics [slideshow_deploy]

    3 Responses to U.S. Free Trade Agreement with Colombia Enters into Force Today -- Finally!

    1. The Protectionist says:

      Jim__I'd like to challenge you and Heritage with the following question: Why have all three parties unwittingly submitted to Karl Marx's proposition that the fastest way to destroy capitalism is with free trade, while obvlious to Daniel Webster's claim that the number one reason we have our US Constitution was to stop free trade with Britain under the Article of Confederation due to the economic chaos it had unleashed. Lincoln founded the Republican party as a protectionist. Ultimately, Republicans became economic mirror images of the Democrats when they adopted free trade in the 1960s. Because protectionism never had a theoretical foundation it was destined to be extinquished by modern economic theory after the 1960s. A daring response to this sorry state of affairs can be found at rescuingeconomics.wordpress.com which argues there has never been a sound theory of economics, only sound industrial policy. The associated book is an analysis of the 200 year history of economic thought and attempts to build a new school of theory built on the forgotten legacy of American protectionism. The Chinese have recognized the brilliance of the industrial policies of our founding fathers and Lincoln while getting rich in the process. Maybe it is time we do too.

    2. That’s a really good news. Exports are a good way to revive the economy. Readers might also be interested in a whitepaper on exports ( http://bit.ly/HdWo1R ). It offers good advice on exports and its benefits.

    3. Bob says:

      My curiousity is peaking on this one. Why are we trading with the number one country dealing in ilicit drugs on the planet and how is this obvious MAIN LINEING benefiting the American peoples. Beside perhaps making more poloticians richer because now there is a direct MAIN LINE conection to the source? So lets see. Drug anf human smuggling, gun runing, vote fixing and the 16000 new irs agaent whom have the authority to go into any home for any reason they conjure. Yep thats communism for sure!

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