[Congressional Record Volume 157, Number 146 (Monday, October 3, 2011)]
[House]
[Pages H6489-H6495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FREE TRADE AGREEMENTS
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 5, 2011, the gentleman from Texas (Mr. Brady) is recognized for
60 minutes as the designee of the majority leader.
Mr. BRADY of Texas. Mr. Speaker, as you know, our economy is in a
tough situation here. Two-and-a-half years after recovery has
supposedly started, we have almost 20 million Americans unable find a
full-time job; yet we have companies, ranchers, businesses,
technologies, small business anxious to sell their products around the
world. But this administration, unfortunately, has not moved the free
trade agreements that would allow us not simply to buy American, but to
sell American in every corner of this globe.
I am pleased to announce that today, nearly 5 years after America
signed a sales agreement, a trade agreement with Colombia, that the
White House has submitted agreements, these agreements with Korea,
Colombia, and Panama, to the United States Congress and the Ways and
Means Committee of the House of Representatives. We are going to move
quickly and deliberately and strongly to pass these trade agreements so
we can level the playing field and allow our farmers and companies and
manufacturers and workers to compete and win around the world on that
level playing field.
Tonight, we have a number of distinguished lawmakers who have focused
on finding new customers for our companies and our farmers here at
home.
I yield 3 minutes to the gentlewoman from Kansas (Ms. Jenkins), a
member of the Ways and Means Committee and Trade Subcommittee.
Ms. JENKINS. I would like to thank the honorable chairman from Texas
for his leadership on the issue of trade and for yielding.
In today's global economy, it's essential that we make every
reasonable effort to open foreign markets to American products. Yet
today, as our country is struggling with a lackluster GDP and stagnant
job creation, grocery stores in South Korea are signing long-term
agreements with beef producers from Europe, not America.
Why European, not American? Well, the reason is simple. While this
administration has dragged its feet in the approval process of our own
agreement, the European Union was able to enact their agreement with
South Korea before the United States could take up our own. Therefore,
the South Koreans are able to purchase European goods--most notably,
agriculture products--at a much lower rate and prices because, unlike
American goods and commodities, they do not have costly tariffs
attached to them. The same is true with American goods and agriculture
products in Colombia and Panama.
In the first 2 weeks after the EU-South Korea agreement was passed,
European exports to South Korea rose by 16 percent. We are losing
market share and American businesses are losing their competitive edge
all as a result of Washington's inability to pass these essential
agreements that supposedly have bipartisan support.
In fact, since Canada signed their free trade agreement with
Colombia, the U.S. has lost nearly 30 percent of our market share in
wheat exports to Colombia. Losing 30 percent of our market share in a
key commodity like wheat has a tremendous impact on a small State like
Kansas.
When it comes down to it, this isn't about ideologies. This is about
American jobs. President Obama has said it himself, these agreements
can create 250,000 American jobs, and yet he has sat on them for nearly
3 years. These agreements have the ability to immediately create
thousands of jobs, open new markets for farmers, ranchers, and
manufacturers, and play a pivotal role in growing our economy out of
this stagnancy.
I would like to thank the President for ending his stall tactics and
finally sending these agreements to us today, and I implore my
colleagues in Congress to work with us to swiftly pass these vital
trade agreements. Let's have beef producers from Kansas or even Texas,
Mr. Chairman, signing long-term deals with South Korea, Colombia, and
Panama, not Europe or Canada.
Let's finally back up this rhetoric with action. Let's get Americans
back to work.
Mr. BRADY of Texas. I thank the gentlelady from Kansas for making the
point that agriculture has paid a steep price as a result of the delays
of these agreements, yet with the potential of signing these agreements
has the ability to sell, win, and compete in these three important,
growing, dynamic markets.
At this point, I yield 4 minutes to the gentleman from Kentucky (Mr.
Davis), one of the key members of the Trade Subcommittee, with a
manufacturing background, who understands the need for America to lead
in the global marketplace.
Mr. DAVIS of Kentucky. Thank you, Chairman Brady. I appreciate you
organizing a Special Order tonight dealing with these critical free
trade agreements with Colombia, Panama, and South Korea.
I am encouraged that the President sent the agreement to the Hill
earlier here today, and we are here to lend support to the President
for these agreements and to encourage him to implement them as soon as
they pass the House and Senate.
Passage of these trade agreements is long overdue and critical not
just for our national economy, but also for our national security.
Through the Colombian agreement, we signal our dedication with a
strategic and faithful ally. During my service in the U.S. Army, I ran
U.S. Army aviation operations for the multinational force and observers
in the Sinai, providing direct support and serving jointly with the
Colombian military in the Middle East. In fact, they continue to serve
in that same role. They are also serving in Haiti, Sierra Leone, and
training militaries and police in counternarcotics and
counterinsurgency measures across the globe.
U.S. leadership in our hemisphere is under threat from competitors,
and the administration's inattention to Latin America is a real
challenge that we are facing now. But the Colombia agreement signals
our reengagement, which is critical to both our economic and our
security future. U.S. exporters' share of Colombian imports fell 17
percent between 2001 and 2009, while Chinese exporter shares nearly
tripled.
The trade agreement with Colombia will advance our national security
interests by providing Colombians with alternatives to the drug trade.
Colombia is a robust democracy with strong ties to the United States in
a region that includes several increasingly anti-American governments,
especially Venezuela. We must strengthen these ties and pacify any
concerns about America's reliability as a partner by ratifying this
trade agreement.
Similarly, implementing the Panama trade agreement will further mark
our reengagement with the region, while countering anti-Americanism and
China's increasing economic prominence.
The U.S. is the largest user of the Panama Canal and works closely
with the Panamanian Government to ensure the safety of the canal
itself. Panama is currently expanding the canal to double its capacity
by allowing more and larger ships to transit. This expansion will
increase the imports and exports to and from the United States
[[Page H6490]]
while creating the need for further cooperation between our two
countries to enhance regional maritime and port security.
South Korea also serves as a critical U.S. ally, both diplomatically
and militarily. Our alliance with the Republic of Korea has grown even
closer since the March 2010 sinking of a South Korean naval vessel by a
North Korean submarine. Currently, the U.S. maintains about 28,000
troops in the Republic of Korea, and our militaries regularly conduct
joint exercises.
Our geostrategic relationship with South Korea is important not only
to counteract the threat from North Korea, but also in dealing with
China's military ambitions and security in the Pacific Rim.
With elections for South Korea's National Assembly and Presidency
scheduled for 2012, it's critical to strengthen this vital
relationship. Ratifying the South Korea trade agreement will
demonstrate our commitment to this important partner and help to act as
a counterweight to Chinese influence.
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Furthermore, entering into an FTA with South Korea will help reorient
the alliance between our great nations to adapt to the changes on the
Korean Peninsula and in East Asia. Continuing to delay ratification of
the trade agreements with Colombia, Panama, and South Korea could
seriously harm American credibility, economic advantages for our
country's exporters, and our position of global leadership.
I urge the President to implement the agreements immediately after
they clear Congress for the betterment of our national economic health
and our military and diplomatic partnerships.
Thank you again, Chairman Brady, for holding this important
discussion tonight on the House floor.
Mr. BRADY of Texas. Mr. Davis, thank you for your leadership and for
making the point tonight that these agreements, as important as they
are for jobs and new customers, they are also important to enhance our
security relationships in the growing Asia Pacific region, and in Latin
America as well. Thank you for your leadership.
Now I would like to introduce the chairman of the Korean Trade
Agreement Working Group. He is a key member of the Ways and Means
Committee, and comes from a region that understands exports and imports
create jobs in America. I yield to the gentleman from Washington (Mr.
Reichert).
Mr. REICHERT. Thank you, Mr. Chairman, and I want to thank you for
all of your hard work and your leadership in this area. I'm a newcomer
to the world of trade, and a fairly newcomer to Congress, having been
here for 6 years.
I want to talk a little bit about the frustration that I think a lot
of us here in the House have been experiencing, and I think a lot of
people, Mr. Speaker, across this country are feeling, and that is a lot
of frustration, a lot of anger at this Congress, the fact that we can't
work together. But the good news is that today, we're going to have
that opportunity. The President has finally decided to send those trade
agreements that we've all been waiting for for the past 4 years to
Congress so that we can have a vote on the South Korean agreement, the
Colombia agreement, and the Panama agreement. And these are all
important. Why? Because they create jobs. We know they create jobs.
In Washington State alone, one out of every three jobs is connected
to trade--one out of every three jobs. South Korea is Washington's
fourth-largest trading partner. It's important for the people of
Washington State to have this partnership with Korea, with Colombia,
and with Panama. Right now, we are falling behind. The European Union,
as I think was mentioned earlier, signed their agreement and it became
final on July 1 of this year. Since July 1, the European Union has
increased their exports to Korea by 17 percent. We are losing market
share. We are losing jobs. We must act now.
The estimated jobs that we are losing is almost 350,000 jobs as we
sit here and wait. Ninety-five percent of our market is outside of the
United States. Ninety-five percent of our market is outside the United
States. We want to sell American. Sell American; that's our goal. Yeah,
we want to buy American here in the United States. We all want to do
that, but we want to sell American.
We can create 280,000 jobs by passing these agreements, and I think
this is a time when Members of this Congress, both sides of the aisle,
and including those divisions within the parties, need to come
together. If you want to create jobs and you want to be a leader in
this global economy, if you want to encourage innovation,
entrepreneurship, the time is now. It's time to come together and pass
these agreements by a wide bipartisan majority, show the American
people that we are here to lead, show the rest of the world that we are
here to lead. And we are here to compete because America has the best
products, the best workers, and the best imagination in the world.
Mr. BRADY of Texas. I appreciate the gentleman from Washington making
the point that Korea is such an important growing market in the Asia
Pacific region. If America hopes to continue economic growth and to
have the strongest economy in the world, we must engage in that region
of the world, and the free trade agreement working group that Mr.
Reichert heads here in the House is critical to that.
I would now like to introduce the gentleman from Louisiana, Dr.
Charles Boustany, a valuable member of the Ways and Means Committee,
who is so strong on trade, and comes from a State that understands
trade means jobs, and I yield to Dr. Boustany.
Mr. BOUSTANY. I thank the chairman for leading this effort tonight,
and all of your leadership on trade issues as we go forward.
Expanding export markets for American farmers, manufacturers, and
service providers is essential if we're going to have a strong American
economy with private sector job creation. The United States has not
acted aggressively enough to open markets over the past 3 years under
the Obama administration. And now we're falling behind as other nations
gain market share.
America has had a strong comparative advantage in agriculture
production historically. In fact, in my home State of Louisiana, the
number one export is agricultural commodities. Louisiana ranks fourth
among the 50 States in exports. Over 500,000 jobs in my small State, a
small State with a little over 4 million people, 500,000 jobs in
Louisiana are supported directly by trade. Our rural communities in my
State are supported by the strength of agricultural production and
access to open markets. The local dentist's office, the local school,
the small gas stations, all these things depend on the strength of
agricultural production, not only in Louisiana but across our country.
We need open markets for agricultural products if we're going to
sustain these rural communities and economic development.
The trade promotion agreements with Colombia, Panama, and South Korea
amount to over $13 billion annually in new market access. The failure
to implement these agreements has caused significant loss of
market share. Louisiana, for instance, is the third-largest rice
producer in the Nation. Louisiana and U.S. rice exporters face
prohibitive tariffs currently in Colombia and Panama. These agreements
would phase out these tariffs, creating huge opportunities for
Louisiana farmers and millers. Over one-third of Louisiana exports to
South Korea would see immediate duty relief and elimination, a
significant advantage for Louisiana businesses.
The administration's failure to send these agreements over the past 3
years has had significant adverse consequences. In fact, on January 1,
2009, Colombia's trade agreement with Argentina went into effect,
giving Argentina's farmers a competitive advantage over U.S. farmers.
In fact, America's market share in the Colombian market for corn,
wheat, and soybeans plunged from 71 percent in 2008 down to 27 percent
through the first 10 months of 2010, a 44 percent drop in market share,
precipitously, that was nearly matched by Argentina's gain. And that's
just one example of the consequences of the failure to act on this--
lost market share and job loss. We must immediately implement these
agreements to promptly avoid further loss.
Mr. Speaker, American competitiveness, American credibility, and
American leverage with our economic competitors is at stake. Passing
these
[[Page H6491]]
agreements with Colombia, Panama, and South Korea is only a start.
America needs to move beyond that. We need a well thought out trade
strategy that will allow American farmers, businesses, and workers to
compete and prosper. An American trade strategy is a critical
instrument of American foreign policy because our economic strength is
the foundation of both our soft power and our hard power. An American
trade strategy is essential for American leadership in the 21st
century.
Mr. BRADY of Texas. I appreciate the gentleman from Louisiana making
the key point of how America is falling behind and how it's hurting our
local economies, our local ranchers, our local service technologies,
and our local ports as well.
I would like to yield to a gentleman from California, the former
chairman of the Trade Subcommittee, who comes from a State and a
district that is rich in the institutions of ranching and technology
companies that export successfully around the world. I would like to
yield to the gentleman from California (Mr. Herger).
Mr. HERGER. I thank the gentleman from Texas very much, and I want to
thank the gentleman for the tremendous leadership that you've given us
in the area of trade, trade which is so crucially important to our
Nation, to our ability to create jobs, to our economic well-being here
in our Nation.
As Chairman Brady mentioned, I am very blessed to represent one of
the richest agricultural areas in the world, an area in the northern
Sacramento valley of California just north of Sacramento. In our area,
we are the second-largest rice producing district in the Nation. We're
also one of the top producers of specialty crops: peaches, walnuts,
almonds, dried plums, and prunes are some of our major commodities.
{time} 1940
And the fact is that we cannot, both in California and in our Nation,
nearly consume the amount of products that we grow. We are dependent on
being able to export. But our challenge--and the example I'm giving
with my district is really true in every area across our Nation; it's
true in manufacturing and it's true in everything we do--is that as one
of the top trading nations in the world historically, the United
States, we are dependent on being able to trade. Ninety-five percent of
the world's markets lie outside of the United States.
Now, what are the challenges that we have, and why are these trade
agreements, these three trade agreements with Panama, Colombia and
South Korea, so very important to not only my area of California but to
the entire Nation? The reason is that we have challenges in getting
into other countries' markets. We have very little, very low barriers
coming into our markets.
Other countries can trade with us almost barrier-free, but that is
not the case with our products going to other countries. Other
countries--virtually all of them--are very protective. They have very
high tariffs. So therefore what is taking place when we sit down with
these nations and bargain and come up with these trade agreements is an
opportunity of lowering their barriers so that the district in my area
where we can be able to export to them rice, peaches, walnuts, almonds,
dairy products, and, again, our manufacturing goods, without these high
barriers and be able to get access to those markets. So it's very
important that we do this.
What happens when we don't move forward? Well, we can see it. I was
in Panama just this last year. Panama now is doubling the size of the
Panama Canal. They're going to need construction equipment. Now, where
are they going to purchase this construction equipment? Well, they
could be purchasing it from the United States. But guess what? Canada
was successful in negotiating a trade agreement with Panama before
we've had ours signed. Therefore, they have lower rates, lower barriers
on getting their equipment into Panama. So Panama there has had a big
advantage of buying from Canada, sales that would have come from the
United States.
We can use these same examples with Colombia, the same example with
South Korea who has negotiated with the EU, a major trading competitor
with us. Therefore, we lose out in jobs, and we lose out in this market
share. It is really a lose/lose for the United States.
I want to commend the President. We wish he would have sent these
three agreements to us sooner. I'm grateful that he's sending them to
us now. It's very important that we pass it. What we have seen is that
the nonpartisan U.S. International Trade Commission has estimated that
by signing these three trade agreements we can increase 250,000 new
jobs to the United States--250,000 new jobs. That's without any
stimulus, without any taxpayer money going into it. It is jobs for
people who are unemployed today that can be employed, and it will
increase at least $13 billion in trade.
So I want to urge our Congress, I want to urge the House and I want
to urge the Senate to vote for these, pass it, let's get going on these
trades. Again, Mr. Chairman, thank you very much for your leadership.
Mr. BRADY of Texas. Well, Chairman Herger, thank you for your
leadership in trade throughout the years. I know especially in
California, but for all the country, trade means jobs. These new
customers mean jobs. The longer we delay, the more other countries step
in front of us and take our customers and, unfortunately, take our
jobs. So thank you for your leadership.
One of the bright new members of the Ways and Means Committee is a
gentleman from Nebraska. He comes from a State that understands
agriculture. He understands you can't survive just by selling to
America. There are so many customers around the world that need to buy
American products in agriculture that it's key to survival and it's key
to job creation.
I would like to yield to the gentleman from Nebraska (Mr. Smith).
Mr. SMITH of Nebraska. Thank you. I appreciate the opportunity to be
here, and certainly I appreciate my colleague from California talking
about agriculture. And it certainly speaks to the diversity of American
agriculture when he listed so many products, and I don't think a single
one of those that you listed is actually grown in Nebraska, and
obviously we produce a lot of agriculture products in Nebraska, and we
know what it's like to even produce more than we consume in our State
alone. California might be slightly different, but we know that we've
got efficient production all across America.
So I want to take just a moment to discuss the impact and benefits of
trade agreements to Nebraska and certainly the national economy. As our
economy continues to struggle, we should obviously be exploring every
avenue to create businesses and create new jobs. Markets around the
world present tremendous opportunity because of their size, scope, and
rate of growth. And we've heard a lot of numbers tossed around this
evening, but we know that beyond the U.S. lies 73 percent of the
world's purchasing power, 87 percent of its economic growth, and 95
percent of the world's consumers.
While the national economic impact of trade is very important, the
increased marketing opportunity for Nebraska is obviously tremendous as
well. For Nebraska, this means the three trade agreements will increase
exports by more than $123 million per year. That's every year.
Specifically for agriculture, the agreements with Panama, Colombia, and
South Korea would lead to gains for Nebraska's major agriculture
commodities, including beef, pork, soybeans and corn.
New markets create opportunities for farmers and ranchers along with
the food processors, agri-businesses, transportation workers, and all
the sales and related professionals who support the agriculture sector.
I want to make sure Nebraska products and producers make the most of
opportunities provided by international sales and to increase exports.
There's been enough delay. We certainly know that. And our market share
in Colombia has already declined because of inaction. The debate is no
longer simply about generating potential export gains, but also how to
prevent the loss of existing export markets.
Thank you again. I appreciate this opportunity.
Mr. BRADY of Texas. I appreciate the gentleman from Nebraska talking
[[Page H6492]]
about the lost opportunities of delayed trade and the job opportunities
of passing these three agreements with South Korea, Colombia and
Panama, all of whom are dynamic economies we ought to be competing in.
I'm glad at this moment to yield to a gentleman from Illinois, a
State that understands the importance of competing and winning around
the world and that does so successfully.
I yield to the gentleman from Illinois (Mr. Dold).
Mr. DOLD. I want to thank the chairman for his leadership in trade,
and certainly this is an important topic. Just last month, we were
actually here in this Chamber when the President came down to talk
about jobs and the economy. And there's no doubt it is the number one
issue that faces our country today regardless of what side of the aisle
you sit on.
The President got up and talked about his jobs package; and as
opposed to saying, no, we don't want the jobs package, what I said and
what a number of colleagues that I know have talked about is what are
the areas that we agree upon. And let's focus on those and try to pass
those because the American public is demanding that of us.
Certainly at the top of that list are the free-trade agreements. And
when we talk about the free-trade agreements, it's trade promotion
where we're actually setting the ground rules with foreign countries,
where the United States can actually compete on a level playing field.
And if we can complete on a level playing field, the American worker
can win.
In the 10th Congressional District of Illinois, we've got 650
manufacturers that represent over 80,000 jobs. Of those 80,000 jobs,
over 50,000 of those jobs rely upon exports. You've heard the
statistics from some of my colleagues here today talking about 73
percent of the world's purchasing power is outside of the United
States, and 95 percent of all consumers are outside of the United
States.
Just this last week, I had a manufacturers' roundtable where part of
the topic of discussion was demand. Well, if we want to increase
demand, I would certainly argue that we need to be able to have access
to markets outside of the United States. Just South Korea alone would
add $10 billion on to our GDP. For each additional billion dollars of
exports, we create 6,250 jobs in America. That is a jobs plan. We can
create additional jobs.
In Illinois, we've lost 750,000 manufacturing jobs over the last
decade; and, frankly, we need to turn that tide around. We know in
order to be competitive in the United States, the world is not going to
sit back and wait for us. The EU has signed its free-trade agreement
with South Korea, with Colombia and with Canada, and you've heard from
others that the world is not going to wait. We're losing market share
as we speak each and every day that we don't act. We must move forward.
It represents a significant amount to our GDP. And we all know that if
we don't act now, we're going to lose jobs. It must be putting jobs
first and foremost that's going to allow us to move forward for our
country.
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So I urge my colleagues on both sides of the aisle to stand up and
embrace what the President has given to us. And I certainly appreciate
the President sending us the free trade agreements. We told him we
would act quickly. He sent them to us today, and today we're talking
about them on the floor. We're going to act, and act swiftly, for the
American people and for jobs.
Mr. Chairman, I thank you so much for your leadership on this very
important issue. It's about jobs and the economy and putting American
workers back to work.
Mr. BRADY of Texas. I appreciate the gentleman from Illinois, who
comes from a State that understands trade means jobs. And I appreciate
his leadership and effort in this area.
Minnesota is also a State that is growing and recovering from this
economy because it knows how to sell American throughout the world,
especially in medical technology and a number of other key sectors.
I'm glad to yield to the gentleman from Minnesota (Mr. Paulsen), a
key member of the Ways and Means Committee.
Mr. PAULSEN. I thank the gentleman for yielding. And I also thank you
for your leadership on the Trade Subcommittee.
Mr. Speaker, there's no doubt with our economy struggling Washington
should be doing everything it can to give our job creators the economic
certainty that they need and they lack right now, including meaningful
tax reform and alleviating government regulations. But the future of
growth right now doesn't only lie in a more efficient bureaucracy or
lower taxes, it also lies in giving greater export opportunities to
emerging markets that are hungry--hungry for American products and our
ideas.
The simple truth is that increased trade, new sales and new customers
are a proven way to create jobs. These three pending free trade
agreements with Panama, South Korea, and Colombia will level the
playing field for American businesses, aid in our economic recovery,
and allow the United States to compete and win. And with so much
concern about skyrocketing deficits, increased free trade is a no-cost
way to help the private sector create jobs.
In my home State of Minnesota, 60,000 jobs are dependent on global
trade. Now surprisingly, it's not just our fertile soil in the ag
community or the iron ore deposits up north that are creating most of
these jobs. Ironically, over 90 percent of Minnesota's trade-supported
jobs come from the manufacturing sector. That's a true testament to the
quality of Minnesota-made products and the workers who produce them.
Now, by passing these three free trade agreements, we will reduce the
barriers in three countries, allowing 60,000 Minnesotans--and now
others--the opportunity to find new sales and new customers for their
products, giving the companies who employ them the opportunity to
expand and start hiring again.
Now, this is about doubling exports, as the President has stated is
his goal. Our Governor just led a trade delegation, actually, to South
Korea with 24 different businesses. And in Minnesota, it's not just
about agriculture. As the chairman just mentioned a second ago, I come
from a State that has 400 medical device companies. It's these high-
valued manufacturing opportunities that are huge opportunities for free
trade and increased sales and customers.
So Mr. Speaker, today is a good day. The White House has formally
submitted these trade agreements now. The Ways and Means Committee is
going to act swiftly. The House will act swiftly. Over the past couple
of months, there's no doubt that Europe has gained an upper hand by
passing their own agreements with Panama, South Korea, Colombia and
other countries, and in doing so, we've been leapfrogged. And now this
is our opportunity to get back on a solid footing. Every day of
inaction that has gone by has been a day where we're falling behind and
we're losing our competitive edge and putting American jobs at risk.
So Mr. Speaker, I am excited to work in a bipartisan fashion to see
this come together in the coming weeks ahead and give our manufacturers
a boost, give our exporters a boost, and get our economy back on track.
Mr. BRADY of Texas. I appreciate the gentleman from Minnesota quickly
leaping into this issue, recognizing the jobs potential, and his hard
work in moving these trade agreements forward.
We have another speaker from Illinois, a key trade State. Judy
Biggert, a Congresswoman from Illinois, has long been a leader in
trade, helping shepherd through Congress some of the key trade pacts in
the past that have turned trade deficits into trade surpluses for
America. She continues to be a leader who understands if we tear down
these barriers for American companies, American jobs are produced.
I am proud to yield to the gentlelady from Illinois (Mrs. Biggert).
Mrs. BIGGERT. Thank you, Mr. Chairman. And I thank you so much for
hosting this Special Order and all the work that you have done.
Given the extraordinary economic challenges that we face, I can't
think of a better or more appropriate topic for Congress to be
addressing here
[[Page H6493]]
today than trade. Let's face it, the pending free trade agreements with
Colombia, Panama, and South Korea should have been enacted long ago.
And only today, after years of delay, has the White House finally
transmitted the agreement to Congress for ratification. As a result, we
have been forced to wait while sales and jobs are lost to other
countries that do not face the same trade barriers that U.S. exporters
face. On many products, tariffs would have come down immediately upon
enactment of these FTAs, giving a massive boost to our economy at a
time when we need it more than ever.
In my home State of Illinois, I have visited with businesses like
Hendrickson, Caterpillar, and Navistar, all major players holding their
breath, ready to export millions of dollars of U.S.-made goods to new
markets opened by these agreements. Right now in Illinois, a company
like Caterpillar has to pay a $200,000 tariff for just one heavy-duty
earth mover going into Colombia, while Colombian exports come into the
U.S. nearly duty free. That is $200,000 that could instead stay in
America with the free trade agreement and supply jobs in my district
and nationwide. All told, these FTAs would support an estimated
quarter-million American jobs and increase exports by $13 million.
Perhaps most importantly, these aren't temporary or low-wage jobs
that will disappear when taxpayer-funded stimuluses run dry. In fact,
these exported-related jobs pay an average of 15 to 17 percent more
than other comparable jobs and don't cost taxpayers a dime. And the
benefits aren't limited to manufacturing. U.S. exports in services and
agricultural goods stand to increase by billions of dollars.
Passing these agreements is one of the most common-sense, low-cost
and economically sound things that Congress, in the President's own
words, ``could do right now'' to boost job growth. And yet only today,
after years on the President's desk, has the administration finally
sent them to Congress for approval.
Fortunately, the end is in sight. With the agreements now in motion,
the House and Senate will at long last have an opportunity in the
coming days to pass all three pending agreements. I urge my colleagues
to support them.
Mr. BRADY of Texas. I appreciate the gentlelady from Illinois, both
for her long leadership role in trade and her remarks tonight.
San Antonio and southTexas, these communities understand a strong
economy depends on strong trade. They are fortunate to have a freshman
lawmaker who, in arriving in Congress, quickly realized--in fact,
before he came to Congress--the need to get out and have a level
playing field to compete and win for American companies and ranchers
and agricultural interests throughout this country.
I'm glad and proud to yield to my Texas colleague from San Antonio
(Mr. Canseco).
Mr. CANSECO. Mr. Speaker, I would like to, first of all, thank
Chairman Kevin Brady for his leadership on trade, and for organizing
this very important Special Order.
Mr. Speaker, right now the number one concern of the American people
is job creation. Over the past 2\1/2\ years, the Obama administration's
solution for job creation has been nothing more than more spending,
more borrowing, more taxing, and it simply has not worked. Instead of
job creation, all that the American people have gotten is more debt.
Since the day he was sworn into office, President Obama has been
sitting on a no-cost jobs solution in the form of our pending free
trade agreements with Colombia, Panama, and South Korea. Together,
these three agreements have the potential to create hundreds of
thousands of new jobs by opening up the markets of our trading partners
to U.S. exports, which would drive job creation and economic growth
here at home.
Several of my colleagues have already spoken of the importance of
these agreements, so I will discuss the importance of these agreements
to my home State of Texas.
{time} 2000
While the Texas economy is very diverse, an important pillar is
agriculture. In the 23rd District of Texas that I have the privilege of
representing, the beef industry is a very important part of the
economy, as is cotton.
All of these three pending trade agreements represent huge
opportunities for Texas agricultural producers. For example, according
to the United States Department of Agriculture, the Colombia agreement
will eliminate the current 80 percent duty imposed on prime and choice
cuts of beef, with all beef tariffs eliminated after 10 years. Cotton,
another important agricultural export from Texas, will see Colombian
tariffs on cotton imports completely eliminated once the agreement is
passed.
In the case of Panama, U.S. beef exports that currently face tariffs
of 10 to 30 percent will be immediately lifted for prime and choice
cuts of beef, with the rest eliminated within 15 years.
The Korean agreement has the opportunity to be a huge windfall for
agricultural exports. The United States Department of Agriculture
estimates that the Korean agreement will increase annual exports to
Korea by a minimum of $1.9 billion upon full implementation. For U.S.
beef exports, Korean tariffs will be completely phased out in 15 years.
Cotton will see its current duty-free status become permanent,
guaranteeing U.S. cotton producers will compete in Korea on a level
playing field with other cotton-producing nations.
There is no doubt that all three pending free trade agreements are
good for agricultural producers in Texas and in the United States.
These agreements are also good for the United States' service
industries.
I am proud to say that I serve on the House Financial Services
Committee. Currently, U.S. financial services providers face challenges
to doing business in all three nations with which we have pending free
trade agreements. The services industry in each nation is growing, and
with passage of this agreement, American financial services firms will
have better access and better ability to compete in a vibrant and
growing market.
These agreements are also important to the United States' standing in
the world. In particular, the Colombia agreement should be passed so
that Colombia can serve as a counterweight to Hugo Chavez's Venezuela.
Despite all the benefits, at the end of the day, these agreements are
about creating jobs here in the United States. Every day that we fail
to pass these agreements, we fail to create jobs and economic activity
that would exist had we already passed them.
At a time when we're seeing unemployment at its worst since the Great
Depression, I am happy that President Obama finally decided to submit
them for consideration, and I look forward to all three agreements
receiving swift consideration in Congress and quickly becoming law
shortly thereafter.
Mr. BRADY of Texas. Congressman Canseco, thank you for your
leadership on this important jobs and trade issue.
Our next speaker is laser focused on jobs in Arkansas. He's made a
big impact coming in as a freshman lawmaker, understands the need to
find new customers.
I am proud to yield to the gentleman from Arkansas (Mr. Griffin).
Mr. GRIFFIN of Arkansas. Thank you, Mr. Chairman.
``If America sits on the sidelines while other nations sign trade
deals, we will lose the opportunity to create jobs on our shores.''
That was President Obama, President Obama in January of 2010,
recognizing the importance of trade agreements to creating jobs in the
United States.
Today, the President finally submitted to Congress, over a year and a
half later, he finally submitted to Congress three critical trade
agreements for our approval. Because of what these trade agreements
mean for job creators, this is welcome news. But the fact that these
three trade agreements, one of which was signed nearly a half decade
ago, have been stalled for so long cannot go unnoticed.
Korea, the Korean trade agreement was signed on June 30, 2007. But
that South Korean agreement is not the only one. The one with Panama
was signed in June of 2007, and the one with Colombia, November of
2006.
President Obama even stated on July 8 of 2011 and during his August
tour through the Midwest that all three of the trade agreements would
be law by now if it weren't just for that obstructionist Congress. He
said that the deals
[[Page H6494]]
are something ``Congress could do right now.'' Well, that's not true.
It wasn't true then. We couldn't pass the agreements because they were
still on his desk waiting to be sent to Congress. Well, we're glad
they're here now, and we will join the President in moving quickly on
these agreements.
While we have waited on President Obama to act on these long-pending,
job-creating export agreements, our foreign competitors--Europe and
Canada, in particular--are rapidly increasing their market share and
cultivating relationships with trading partners in those countries
while American businesses sit on the sidelines.
Make no mistake: More American exports mean more American jobs.
In my home State of Arkansas and in the Second Congressional
District, these trade agreements will be very helpful for job creation.
Arkansas unemployment is above 8 percent, and we need pro-job creation
policies in Washington to stop that from going even higher. We need
pro-American export policies to sell more of our products overseas so
that Arkansans get the jobs and our manufacturers and farmers get the
business.
The three pending export agreements with Colombia, Panama, and South
Korea will increase U.S. exports and will create over 250,000 new jobs.
Right now, more than 320,000 Arkansas jobs depend on exports, and these
agreements will only increase that number. Full implementation of the
South Korea trade agreement alone could generate more than 2,500 new
jobs in Arkansas.
Manufacturing exports are the strongest part of Arkansas' economy.
Exports directly support 14 percent of Arkansas' manufacturing jobs,
and 66,000 total jobs in all sectors of the economy are supported by
manufactured goods exports.
Since 2003, Arkansas manufacturing exports rose twice as fast as the
State's overall economy. Seventy-seven percent of Arkansas exporters
are small businesses. And, in fact, Arkansas exported over $2 billion
of manufactured goods to free trade partners in 2010. That's 45 percent
of Arkansas' total. That number will only continue to grow with the
approval of these agreements.
These agreements are critical not only to the country at large, but
to Arkansas in particular. With 95 percent of the world's consumers
outside the United States, we now need to give American businesses the
opportunity to build stronger trade ties with countries seeking our
goods and services, the best goods and services in the world.
Now that the President has finally sent the three pending export
agreements to Congress, we can pass them and help American companies
compete and create jobs.
I am confident that Congress will act quickly to approve these
important bills.
Mr. BRADY of Texas. I appreciate the gentleman from Arkansas laying
out just the economic impact that these agreements have on the Arkansas
communities, on ranchers, on businesses, small businesses, and on the
economy as a whole.
Our next speaker is from Pennsylvania. He understands the importance
of trade to his State. I'm pleased to welcome the gentleman from
Pennsylvania.
Mr. THOMPSON of Pennsylvania. I thank my good friend from Texas for
hosting this and for yielding.
I'm very proud to be here tonight, a subcommittee chairman of the
Agriculture Committee, to speak to the tremendous benefits that these
three free trade agreements yield for all of agriculture across the
United States.
Mr. Speaker, today America's farmers and ranchers are competing in a
global market in face of stiff protectionism while their foreign
competitors are gaining preferential treatment and access at the
American people's expense.
It's been a long time coming. While the delay was unacceptably long
and likely has cost jobs, I'm pleased the Obama administration has
finally done its part and sent Congress these important trade
agreements, free trade agreements with Korea, Colombia, and Panama.
{time} 2010
Many agricultural products have encountered dramatic price
fluctuations in recent years, particularly dairy, as a result of
depressed exports. These trade agreements will expand U.S. exports,
create jobs, and bring much-needed income to communities across rural
America.
These exports are increasingly important to Pennsylvania's
agricultural and statewide economy. Expanding these markets for our
farmers, ranchers, and small businesses across the country is a
critical component of future economic growth. Overall, every sector of
Pennsylvania's agriculture stands to benefit from each trade agreement.
Pennsylvania will benefit under the U.S.-Korea free trade agreement.
The U.S.-Korea free trade agreement will benefit the Pennsylvania
economy and create new jobs by immediately opening new access for
Pennsylvania goods and services in Korea's $1 trillion economy and by
establishing a level playing field in Korea for Pennsylvania workers
and businesses to compete.
One-half of chemical products and many other manufactured goods
produced in Pennsylvania will enter Korea duty-free immediately.
Tariffs on the remaining chemical products will be eliminated over the
next few years. Korean duties on major Pennsylvania agricultural
products, such as grape juice, wine, and many dairy products, will be
eliminated immediately. Mushrooms will become duty-free within 5 years.
Simplified and expedited customs procedures will enable Pennsylvania
businesses to reach Korean customers more quickly and with less
redtape.
Full implementation of the Korea trade agreement could generate
nearly 280,000 new jobs, including 9,963 in Pennsylvania alone.
Pennsylvania will benefit under the U.S.-Colombia Free Trade
Agreement. Under the Colombia Free Trade Agreement, more than half of
U.S. agricultural exports to Colombia will become duty-free
immediately, and the remaining eliminated within 15 years. Colombia
will eliminate its price band system which affects key U.S. exports,
including corn, wheat, dairy, pork, and poultry. Tariffs of $202
million in U.S. processed food product exports, which are currently as
high as 20 percent, will be immediately eliminated. Colombia is
actively pursuing and implementing free trade agreements with a number
of other trading partners. With every day that we don't act on this
agreement, foreign competitors take market share from American farmers
and ranchers.
Pennsylvania will benefit under the U.S.-Panama Free Trade Agreement.
Panama is one of the fastest expanding economies in Latin America, with
7.5 percent growth in 2010. Panama is already an important market for
America's farmers and ranchers. In 2010, the United States exported
more than $450 million of agricultural products to Panama. More than
half of U.S. agricultural exports to Panama will become duty-free
immediately. Remaining tariffs will be removed over 15 years. Panama's
tariffs on poultry range from 5 percent to 260 percent. Some of these
will immediately drop to zero, and others will be phased out within 15
years.
I am so pleased that we're moving ahead with what will be great for
agriculture and great for jobs in this country with these three free
trade agreements. Mr. Chairman, thank you so much for hosting this
tonight.
Mr. BRADY of Texas. I want to thank the gentleman from Pennsylvania
again for his leadership on this bipartisan jobs issue. Again, the
focus on creating jobs in communities in Pennsylvania by finding new
customers is key to the growth of our economy and America's wealth.
Tom Reed is a new member of the Ways and Means Committee who has
quickly established himself as one of our brightest stars on trade. He
understands it means jobs to New York, and he knows that it means jobs
to America as well. Earlier this year, he helped lead a letter from our
freshman Republicans to the White House insisting the President submit
these three agreements so we have a chance to compete and win around
the world in these growing new markets.
I am proud to yield to a friend and a fellow member of the Ways and
Means Committee, Mr. Reed of New York.
Mr. REED. Thank you very much, Mr. Chairman.
[[Page H6495]]
I rise today, even though feeling a little bit under the weather with
an obvious cold, to show my support for these free trade agreements,
because we have worked hard from day one in this Congress to be a voice
for what I believe to be true free and fair trade agreements that put
us and America on an even playing field with other countries around the
world.
South Korea, Colombia, and Panama represent 250,000 jobs. It can't be
any simpler than that. I listened to the President come up and present
his jobs speech to us as we sat in this Chamber, and I heard my
colleagues talk about the length of delay it took to get these
agreements up to this House. But I'm not going to look to the past. I'm
going to look to the future. And I'm going to look at the areas where
we can find common ground to advance the cause of the great American
economic recovery that could start and will start with the passage of
these free trade agreements.
I applaud the President for sending these agreements up here today.
I'm very confident that after a thorough and loud debate on these
issues, they will be passed, and we will move forward to a brighter day
of an additional 250,000 jobs in America and $13 billion worth of
enhanced economic activity for the American market. Back in the 29th
Congressional District that I am proud to represent, that is real
money, those are real jobs, and what we're going to talk about are
improvements in our agricultural industry, be it our grape growers, be
it our wine producers, be it our apple growers, be it our dairy
industry.
But we're also proud in the 29th Congressional District to represent
some of the highest tech and manufacturing operations in the entire
world. A little company in the city that I come from, Corning,
Incorporated, in Corning, New York, has had a longstanding business
relationship in South Korea, producing LCD glass and other high-tech
materials and manufacturing components.
To me, these free trade agreements are fair agreements and they lead
to job creation. That's what we were sent here to Congress to do, is to
put America in a better economic condition so that generations of
tomorrow will have the prosperity to call this great Nation home for
many generations to come.
Thank you, Mr. Chairman, for yielding.
Mr. BRADY of Texas. Again, I appreciate the gentleman from New York
for his leadership on this key jobs issue.
With so many Americans out of work, the President was standing in
this Chamber not too many days ago urging Republicans and Democrats to
come together to create new jobs. Can you imagine if there was an issue
that the White House and Congress both agreed on, that Republicans and
Democrats across the spectrum supported, a bill that created jobs not
by government spending but by allowing the free market to do its work,
to granting economic freedom to Americans to buy and sell and compete
in key markets throughout the world?
Well, today we have that issue. It is the three pending sales
agreements with Korea, Colombia, and Panama. As we have said tonight,
they represent almost $13 billion of new sales for American companies,
because we know we have to seek and compete and win around the world
for these new customers. We know, too, that these agreements have been
delayed far too long. Colombia is an old and trusted friend who's made
remarkable progress in the economy, in labor rights, in human rights,
in environmental issues. Today we're on the cusp finally of passing a
free trade agreement that recognizes our security relationship and our
economic relationship. Today we have that opportunity.
I thank the President for sending these agreements to us. As late as
they were, the fact of the matter is he has made each of them better,
has helped increase and improve bipartisan support for all three, but
each day we delay, we lose jobs in America. Each day we delay, Canada
and Europe and China and others move ahead of us, take our customers
and our jobs. It's time for the delays to end. It's time for
Republicans and Democrats to come together and pass these three trade
agreements for America.
Mr. Speaker, I yield back the balance of my time.
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