[Congressional Record (Bound Edition), Volume 157 (2011), Part 11]
[Extensions of Remarks]
[Pages 15407-15408]
[From the U.S. Government Publishing Office, www.gpo.gov]




               YES ON COLOMBIA AND PANAMA AND NO ON KOREA

                                 ______
                                 

                           HON. HOWARD COBLE

                           of north carolina

                    in the house of representatives

                      Wednesday, October 12, 2011

  Mr. COBLE. Mr. Speaker, at one time, North Carolina's Sixth 
Congressional District was one of America's manufacturing power houses. 
Over the years, our manufacturing strength has been compromised by 
discriminatory trade practices that unfairly benefit overseas 
competitors.
  Unfortunately, the Korea-United States Free Trade Agreement (KORUS) 
is a critically flawed trade proposal. With respect to textiles, South 
Korea has a highly sophisticated and vertically integrated industry. In 
2010, South Korea was America's 8th largest supplier of textiles and 
apparel by volume. For example, yarns and fabrics, the largest 
component of the U.S. industry, South Korea was America's 2nd largest 
source of imports this past year.
  The U.S. textile industry is staunchly opposed to the KORUS agreement 
due to the fact that it provides Korean textile exporters with instant, 
duty-free access for virtually all textile and apparel products, while 
giving U.S. producers no time to adjust. At the same time, KORUS has a 
number of non-reciprocal tariff phase-outs that favor the South Korean 
textile industry in key product areas.
  We also understand that China could exploit the KORUS agreement by 
utilizing business relationships in South Korea to reach U.S. markets.
  Our manufacturers are competing against foreign trade barriers, high 
tariffs, export subsidies, state-ownership of enterprises, and currency 
manipulation. The goals of this Congress should be to prioritize fixing 
U.S. trade policy, stopping manufacturing job loss, and closing the 
trade deficit.
  South Korea and its people are true allies of the United States, and 
I value our diplomatic relations. As a Korean War-era veteran, I have 
witnessed first-hand how relations between our two great nations have 
improved dramatically over the years.
  Unfortunately, I cannot support KORUS because it will do real harm to 
the North Carolina textile industry. I am sure that our two countries 
will continue our harmonious relations, but I am hopeful that we can 
reach a trade deal someday that is fair and equitable to both trading 
partners.
  On the other hand, trade with Colombia and Panama does not pose 
similar threats to the textile industry in the United States generally 
and North Carolina's Sixth Congressional District specifically. In 
fact, textile trade among these great nations is healthy and balanced--
we trade raw materials, value added materials and finished goods. 
Furthermore, agreements with Colombia and Panama are far less likely to 
be exploited by countries such as China or Vietnam.
  Colombia and Panama are strategic diplomatic partners with America in 
Central and South America. Free trade agreements with these countries 
will boost our economy, according to the International Trade 
Commission. A deal with Colombia will boost exports of goods by $1.1 
billion and add $2.5 billion to our Gross Domestic Product. An 
agreement with Panama will greatly improve the export of American 
agricultural goods, manufactured goods, specialized services, and 
support other diplomatic efforts to close a notorious tax reporting 
loophole that involves money laundering and tax cheating.
  The agreements with Colombia and Panama show the way fair trade 
agreements should be written. My hope remains that a similar deal can 
be reached with Korea in the near future.

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