[Congressional Record Volume 157, Number 65 (Thursday, May 12, 2011)]
[Senate]
[Pages S2917-S2918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COLOMBIA TRADE PROMOTION AGREEMENT
Mr. HATCH. Madam President, yesterday the Finance Committee held a
hearing on the U.S.-Colombia Free Trade Agreement, what we call the
Colombia Trade Promotion Agreement. This agreement will provide
significant new opportunities for U.S. manufacturers, agricultural
producers, and service providers in the rapidly growing Colombian
market.
Implementation of the Colombia agreement would also benefit U.S.
national security. Colombia is emerging from decades of civil strife,
and it is in our interests to see that Colombia continues to heal from
its wounds of the past. This free trade agreement will help bring
further stability to Colombia, a close friend and ally, while also
opening and further building the market for U.S. exports to that
country. In short, it is a good agreement for the United States.
So what is the holdup? Over 4 years have passed since the U.S.-
Colombia Trade Promotion Agreement was signed. It is imperative that
the administration submit an implementing bill for this agreement to
Congress, and soon. The administration, however, still won't say when
it will send an implementing bill to Capitol Hill.
During yesterday's hearing, I asked our Deputy U.S. Trade
Representative two very simple questions regarding this issue. First,
assuming that Colombia fulfills the steps outlined in the labor action
plan developed by the Obama administration and the Colombian
Government, will the administration submit the Colombia agreement to
Congress for a vote? Second, is the administration preconditioning the
President's formal submission of the Colombia trade agreement on
matters not related to the action plan, such as congressional extension
of trade adjustment assistance or permanent normal trade relations for
Russia? To me, these questions are pretty clear and can be answered
with a simple yes or no. But, unfortunately, we did not get a clear
answer. After years of delay, we still do not know if the
administration will ever submit the Colombia agreement to Congress for
approval. This is very unfortunate.
The Obama administration's delay in submitting the Colombia agreement
is hurting U.S. exporters. This failure is a drag on job creation and
economic growth. While the President has dithered as to whether to
implement the trade agreement with Colombia, our trade competitors have
been more than willing to enter into agreements with Colombia.
Consequently, while Colombia's tariffs on U.S. imports have remained in
place, Colombia's tariffs on products from other countries are falling
away.
[[Page S2918]]
For example, Colombia has implemented a preferential trade agreement
with Argentina and Brazil. As a result, U.S. farm products are rapidly
being displaced in the Colombia market by products from those
countries. So it is not too surprising that between 2007 and 2010, U.S.
agricultural exports to Colombia fell by more than half, and it looks
like matters are going to get even worse. A Montana wheat grower who
testified at yesterday's hearing noted that the U.S. share of
Colombia's wheat market fell from 73 percent in 2008 to 43 percent in
2010. He also stated that following implementation of the Canada-
Colombia Free Trade Agreement, which is expected to occur this year,
U.S. exports of wheat to Colombia will drop to zero unless the United
States implements its trade agreement with Colombia. So U.S.
agricultural exports to Colombia are already falling. U.S. manufactured
goods and U.S. services will be next.
It does not have to be this way. We do not have to continue giving
away the growing Colombia market to our competitors. If we want to
boost our exports to Colombia, all we have to do is implement the U.S.-
Colombia Trade Promotion Agreement.
The Obama administration had earlier stated that it wanted to address
Colombia's internal labor situation before moving ahead with the
agreement. But the administration delayed taking any meaningful steps
to address their concerns with the Colombian government for years. A
few months ago, the administration finally got serious about engaging
with Colombia. And, lo and behold, in a matter of weeks--in a matter of
weeks--they were able to develop a labor action plan that addressed
their concerns in a meaningful and concrete way. The administration
discovered that, in their own words, they had a willing partner in
Colombia. The fact of the matter is that Colombia has been taking steps
for years to address issues related to violence against unionists and
has always been willing to do more. Why it took the administration so
long to figure it out is a mystery to me.
So the Obama administration has now negotiated an action plan that
addresses its concerns regarding the labor situation in Colombia. You
would think we would have clarity that, once the steps in the action
plan are fulfilled, the administration would submit the agreement to
Congress for its consideration. But we do not have this clarity. There
has been no clear answer to this very simple question. Instead, there
seem to be more preconditions on submitting the agreement that are not
even related to the agreement itself, such as extension of trade
adjustment assistance and permanent normal trade relations for Russia.
This is very odd. Most economists would agree that there are likely
to be very few workers who will lose their jobs because of
implementation of the Colombia trade agreement. After all, the U.S.-
Colombia trade agreement will result in almost no growth in imports
from Colombia. This is the case as almost all Colombian products have
entered the United States duty free over the past two decades on
account of U.S. trade preference programs. In contrast, Colombia's
average applied tariff on U.S. imports is over 12 percent, and they can
reach as high as 388 percent.
Moreover, the administration itself testified that implementation of
the Colombia agreement: will expand exports of U.S. goods to Colombia
by more than a billion dollars--that is with a ``B''--increase U.S. GDP
by $2.5 billion; and support thousands of additional jobs for our
workers, at a time when we need jobs, and when we need to pull this
economy out of the mess it is in. So it is hard to see further
extension of the TAA program as a necessary precondition for approval
of an agreement that will help our economy and support jobs in the
United States. It is a no-brainer.
I am also bewildered by any attempts to precondition submission of
the Colombia agreement to congressional support for permanent normal
trade relations for Russia. These two issues are totally unrelated.
Given the current disregard for the rule of law and the many trade
problems that persist in Russia today, it is hard to argue that the
time is ripe for Congress to grant Russia permanent normal trade
relations.
Moreover, it would be particularly ironic and sad to condition
passage of the Colombia trade agreement with permanent normal trade
relations for Russia. Over the past 4 years, Colombia has been a
reliable U.S. trading partner, ready and willing to remove its tariffs
on U.S. imports through implementation of our trade agreement. During
these same years, Russia has seemingly gone out of its way on numerous
occasions to prove to the United States that it is an unreliable
trading partner.
It is fundamentally unfair to continue to treat a friend and ally
like Colombia in this ridiculous way. Unfortunately, it is not the
first time Democratic leaders have put one of our closest Latin
American allies in this position. The U.S.-Colombia Trade Promotion
Agreement was first signed on November 22, 2006--almost 5 years ago.
Democratic leaders refused to consider the agreement until their
additional demands were met on labor, the environment, and intellectual
property. The Bush administration responded by working with then-
Speaker Pelosi on a package of changes that were understood would lead
to consideration of the agreement. But once they had these changes in
hand, the Democratic leadership in the House balked, citing yet more
issues that had to be resolved. When President Bush submitted the
Colombia agreement to Congress for its consideration utilizing trade
promotion authority procedures in April 2008, the Democratic leadership
refused to allow the agreement to come up for a vote. Instead, they
changed the rules, and the agreement has since languished for almost 5
years.
It is time for the excuses to end. Resolution of unrelated issues
such as trade adjustment assistance and PNTR for Russia should not be
used as further barriers to submission of this agreement. Colombia is
taking the steps laid out by the Obama administration that the
administration has said are necessary before the President will
formally submit the agreement to Congress. Once those steps are taken
in June, I fully expect the administration to finally fulfill its end
of the bargain and formally submit the agreement for congressional
approval without further conditions. If not, the administration is
making a conscious decision to continue denying U.S. exporters improved
access to the Colombian market, and to undermine our standing as a
credible ally in Latin America.
It is a no-brainer to realize that Colombia is one of our best
friends. When you compare it to some of its neighbors, such as
Venezuela--and I can name other countries that are undermining our very
country as we sit here and stand here. The fact of the matter is,
Colombia is a friend. Friends should not be treated this way. It is
ridiculous what is going on. There is very little need for trade
adjustment assistance in this particular deal. It is just another way
of sucking from the taxpayers more money for purposes that literally do
not exist.
I hope the administration will wake up and realize this would be a
tremendous achievement for them. There is no reason in the world why
they should not want to do this. It would be a sure creator of jobs at
a time when we need jobs. It will even up a situation that up to this
point has been sad. And it will help our country. Let's quit playing
games with this free trade agreement. Let's get it up. Let's vote on
it, and let's restore our relationship with Colombia to the great
relationship it deserves to be.
Madam President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Franken.) Without objection, it is so
ordered.
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