[Congressional Record Volume 157, Number 152 (Wednesday, October 12, 2011)]
[Extensions of Remarks]
[Pages E1839-E1840]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE KOREA, COLOMBIA AND PANAMA FREE TRADE AGREEMENTS

                                 ______
                                 

                         HON. HOWARD L. BERMAN

                             of california

                    in the house of representatives

                      Wednesday, October 12, 2011

  Mr. BERMAN. Mr. Speaker, as the House considers the Korea, Colombia 
and Panama trade agreements, I would like to set forth my analysis of 
the effects that these agreements will have on my home state of 
California. In all three cases, the facts are overwhelming that 
California will benefit from these agreements.
  At the outset, it is important to note that these agreements are mis-
labeled. They do not provide ``free trade'' in the sense of unfettered, 
unregulated commerce. In reality, these agreements are a set of 
detailed rules that provide for regulated commerce in terms that apply 
to both parties. They specify the tariffs that may apply, the non-
tariff restrictions that may be imposed, the rules of origin to prevent 
third-countries from benefiting, and the enforcement and dispute 
resolution procedures that will provide discipline and order.

                       Korea-U.S. Trade Agreement


                          California Benefits

  With regard to the Korea-U.S. agreement (KORUS), California stands to 
benefit substantially. California already exports $8 billion a year to 
South Korea, accounting for one-fifth of all U.S. exports to that 
country. For California's 60,000 exporting companies, there is 
potential for growth; in 2010 only 6 percent of California's total $143 
billion in exports went to South Korea. The U.S. International Trade 
Commission estimates that KORUS will lead to increases in 9 of the 10 
products that now account for $6 billion of California's exports to 
South Korea. Of these, 5 categories are high value-added products, 
produced by skilled California workers: semiconductor manufacturing 
equipment, computers, electrical equipment, optical and other medical 
equipment and aircraft and aircraft engines.
  In addition, KORUS will increase exports of California-grown edible 
fruit and nuts, in particular walnuts and almonds. We will sell more 
chemicals. And, we will sell more reusable iron, steel and aluminum 
scrap.
  According to the U.S. Trade Representative, some 6,000 jobs are 
supported for every $1 billion in manufactured exports and some 4,500 
jobs are supported for every $1 billion in services exports.


                   Intellectual Property Protections

  KORUS has important benefits for California's entertainment industry. 
KORUS relaxes a number of Korean content quotas and should increase the 
U.S. motion picture and television industries' opportunities to compete 
in the Korean market. KORUS obligates South Korea to decrease the 
domestic content quota on films and animation products. KORUS improves 
the opportunity for U.S. ownership in the broadcast sector, by 
permitting U.S. firms that establish Korean subsidiaries to have 100 
percent ownership of program providers, phased in over 3 years.
  In a side letter, South Korea has agreed to place a priority on 
enforcement against Internet piracy, aimed not only at direct 
infringement but also those who profit from services that induce 
infringement. KORUS also obligates South Korea to implement the World 
Intellectual Property Organization Internet Treaties and expands 
intellectual property protections and penalties against unlawful 
decoding of encrypted satellite TV signals. It also covers cable and 
satellite signals that are retransmitted without authorization of the 
signal distributor. Further, the side letter to KORUS ensures that 
copyright owners have the exclusive right to make their works available 
online.

[[Page E1840]]

      Los Angeles County Economic Development Corporation Analysis

  There have been many analyses and position statements issued for and 
against the Korea trade agreement. In particular, the analysis by the 
Los Angeles County Economic Development Corporation is persuasive. In 
its conclusion, the LACEDC said:
  ``KORUS would create multiple opportunities for both U.S. goods and 
services. On the goods side, the agreement opens the 12th largest 
economy's large middle class of consumers to American-made goods. On 
the services side, the agreement opens up South Korea's $560 billion 
services market to American and Los Angeles area based companies.''
  ``The agreement also creates new opportunities for the U.S. 
manufacturing industry. And the manufacturing capital of the U.S. is 
Los Angeles County. Thus the local economy has a lot to look forward to 
in the coming years, as increased exports will boost economic growth 
and create new and well paid jobs in the Los Angeles region.''

                     Colombia-U.S. Trade Agreement

  There are compelling foreign policy reasons to pass the Colombia-U.S. 
Free Trade Agreement (FTA). Colombia is an important U.S. ally in the 
Western Hemisphere, and this agreement will help cement our 
relationship. The FTA will also increase American exports, providing a 
needed economic boost for the U.S. economy and the creation of new jobs 
here at home.
  I've listened very carefully to the debate on issues of human rights 
and labor rights in Colombia, the horrific levels of violence, and its 
deplorable track record in bringing to justice those accused of 
violating these rights. These issues are profoundly important to me and 
I will continue to work with the government of Colombia to ensure that 
the Labor Action Plan is fully implemented. I believe it is in the 
interests of both the United States and Colombia to subject this FTA to 
labor rights and human rights conditions.
  President Obama deserves credit as the first President to shine such 
a sharp spotlight on labor issues in Colombia, and it is fair to say 
that this FTA addresses labor issues more fully than any FTA before it. 
The Action Plan agreed to by the White House and the government of 
Colombia on April 7 was comprehensive and highlighted specific areas 
where it could improve its record on labor issues. And in his October 3 
letter transmitting the FTA to Congress, the President pledged that he 
would not bring the agreement into force until key elements of the 
Action Plan are implemented.
  Results matter and the kinds of fundamental changes we seek from and 
wish for Colombia and its people will be a long term process. I have 
derived great comfort in the positive sea-change that President Santos 
has represented for Colombia, but I will be watching closely for 
progress and whether this transformative President fulfills his 
promises to change the labor and human rights environment in Colombia.

                      Panama-U.S. Trade Agreement

  While Panama's trade with the U.S. is small, the U.S.-Panama trade 
agreement includes enforceable labor standards for Panamanian workers, 
compulsory Panamanian membership in multilateral environmental 
agreements--both included at the behest of the U.S. administration and 
Congress. Under this agreement, 88% of U.S. commercial and industrial 
exports would become duty-free upon implementation, with remaining 
tariffs phased out over a 10-year period.
  More than 50% of U.S. farm exports to Panama also would achieve 
immediate duty-free status, with tariffs and tariff rate quotas (TRQs) 
on select farm products to be phased out by year 17 of the agreement 
(year 20 for rice). The agreement also contains provisions on 
telecommunications, services trade, government procurement, investment, 
intellectual property rights and tax transparency--the latter to 
address Panama's significant problems with money laundering.

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