Trade pact with Colombia would benefit the U.S.
Thursday, November 13, 2008 12:33 AM PST
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E-mail this articleNov. 13 Daily News editorial
President-elect Obama used Monday’s White House meeting with President Bush to lobby for a stimulus package for struggling automakers, according to The New York Times. Bush, The Times reported, said he could back some help for the auto industry if Obama could persuade Democratic leaders in Congress to drop their opposition to a long-stalled free trade agreement with Colombia.
The president-elect showed no in interest in Bush’s proposed quid pro quo, according to The Times. That’s regrettable. Someone needs to help congressional Democrats recognize the many ways in which international trade stimulates the economy.
Granted, free trade deals are a tough sale when the economy is headed south. Protectionist sentiment tends to grow during hard economic times. Yet, as Federal Reserve Chairman Ben Bernanke noted in talks last year at Montana Tech in Butte, “Restricting trade by imposing tariffs, quotas and other barriers is exactly the wrong thing to do. In the long run, economic isolationism and retreat from international competition would inexorably lead to lower productivity for U.S. firms and lower living standards for U.S. consumers.”
The fact is, this U.S.-Colombian Free Trade Agreement could deliver a timely boost to the national economy. Indeed, there is absolutely no downside for U.S. businesses or workers. The United States is the net beneficiary in the trade pact. Colombia already sells nearly all of its products to the United States duty-free. Conversely, U.S. products sold to Colombia are subject to tariffs of up to 35 percent for non-agricultural goods and higher for agricultural exports. The trade agreement would eliminate more than 80 percent of those tariffs.
It is significant to note that Washington state would be among the greatest beneficiaries of the trade agreement with Colombia. Products in aviation, medical and scientific fields, and agriculture — all important sectors in this state’s economy — would be sold duty-free to Colombia under the trade deal. Washington growers have a big stake in the trade agreement. Colombia is the second-largest market for U.S. farm products in Latin America and, upon approval of the trade pact, Colombian tariffs on U.S. apples, pears, cherries and beef would disappear.
Congressional Democrats may see a political benefit in opposing this and other trade agreements, but there is no economic benefit to be derived from refusing to tear down barriers to trade. Certainly there is none for Washington. International trade largely determines this state’s economic well-being. Washington exports more on a per capita basis than any other state in the nation.
The U.S.-Colombian Free Trade Agreement would amount to an economic stimulus for both Washington and the nation as a whole. That’s the message President-elect Obama should deliver to his party’s leadership.
Rural Citizen wrote on Nov 13, 2008 10:01 AM:
Shame on TDN for supporting another fascist regime... Columbia. "
hauskapoika wrote on Nov 13, 2008 11:52 AM:
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