Free the Colombia Trade Agreement
Thirty-nine members of Congress from both major parties sent a letter to President Obama this week urging him to seek passage of the long-stalled free trade agreement with our South American ally Colombia.
The agreement to eliminate trade barriers between our two countries was signed in November 2006, but under the influence of their trade-union allies, Democratic leaders in the House have refused to even allow a vote.
As signers of the letter point out (go here for a Cato analysis), the agreement would be good for our economy and good for U.S. foreign policy. So far, the delay in passage has forced U.S. exporters to Colombia to pay $2.7 billion in extra duties that would have been eliminated if the agreement had become law.
The bipartisan supporters also rightly note that Colombia is a key ally, standing as a democratic alternative to both the Marxist FARC guerrillas and their authoritarian friend, President Hugo Chavez of Venezuela. As the letter correctly states:
Colombia has made remarkable progress on many fronts, emerging as a major growth market and leading center for Latin American business. In a region that has seen a disturbing increase in hostility to U.S. interests and values, Colombia has consistently proven itself to be an important friend, a reliable partner and a bulwark for democracy.
With Colombia in the process of electing a new president after eight years of progress under Alvaro Uribe, it is more important than ever that we strengthen our ties with Colombia through peaceful commerce.
The 20 House Democrats who signed the June 2 letter prove that this need not be a partisan issue. If President Obama is serious about boosting U.S. exports, building friendships abroad, and reaching across the aisle for the good of the country, he should heed the wise words of this letter.
Colombia Trade Deal Enters Fourth Year of Limbo
Sunday marked the third anniversary of the signing of a free trade agreement between the United States and Colombia. It is an embarrassment to our great nation that this agreement with an important Latin American ally still sits on the shelf three years later, a victim of congressional trade politics.
As my Cato colleague Juan Carlos Hidalgo and I argued in a 2008 Free Trade Bulletin, and as I wrote in a more recent op-ed, the FTA with Colombia is a win-win for Americans. It fully opens the Colombian market and its 44 million pro-American consumers to our exports, while deepening our ties with one of our most dependable allies in the Western Hemisphere.
The AFL-CIO and other opponents of the agreement demand that Colombia further reduce violence against trade unionist before approval can be considered, and the president and Democratic congressional leaders have dutifully agreed. Never mind that the number of trade union members murdered in traditionally violent Colombia has declined dramatically under President Alvaro Uribe. Congress and the administration keep moving the goal posts, much to the frustration of the Colombian government.
Meanwhile, since the agreement was signed, U.S. companies have paid $2.3 billion in unnecessary duties, according to the “Colombia Tariff Ticker” sponsored by the Latin America Trade Coalition. On the foreign policy front, Colombia faces continued threats from the Marxist FARC guerrilla movement and its anti-American neighbor, President Hugo Chavez of Venezuela.
Refusing to enact the trade agreement with Colombia only reinforces suspicions in Latin America that the U.S. government is unreliable.
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