October 13, 2011
The U.S. Congress approved trade agreements with South Korea, Colombia, and Panama in what creates the largest opportunity for exporters in decades. This ends any fears that actions of the US government leaned toward protectionism, and the bills passed in light of opposition that these agreements will lead to job losses.
The Colombia bill faced the most Democratic opposition, on the grounds that Colombia did little to protect union leaders from assassination. According to Senator Sherrod Brown of Ohio, Colombia is the most dangerous place in the world for trade unionists. Indeed, the Nation Union School, a labor rights organization in Medellin, reported that 51 union members were killed last year, an increase from 47 in 2009. Under the agreement, over 80 percent of U.S. exports will become duty free immediately, and remaining tariffs will be phased out over the next ten years. Key U.S. exports will gain immediate duty-free access to Colombia, including information technology equipment.
Last year, the U.S. exported $6 billion worth of goods to Panama and imported minimally from the country, but the new trade agreement will make it easier for the U.S. to compete for contracts in Panama's $5.25 billion expansion of the canal. The FTA guarantees access to Panama's $20.6 billion services market, including priority areas such as financial, telecommunications, computer, distribution, express delivery, energy, environmental, and professional services. Phasing out tariffs on imports and exports will benefit farmers in numerous ways, but will also allow for the duty-free export of information technology equipment.
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