[Congressional Record (Bound Edition), Volume 157 (2011), Part 11]
[Senate]
[Pages 16419-16421]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          INTERNATIONAL TRADE

  Mr. UDALL of Colorado. Mr. President, I wish to speak about the 
recent trade votes that the U.S. Senate had over the last several 
weeks. I believe that bilateral trade agreements should be based on the 
premise that by growing economic ties with foreign trading partners our 
nation levels the playing field on which our companies and workers 
compete. Trade agreements should also be a means to growing a 
relationship with established allies that share our commitment to 
democratic values in an effort to work toward achieving common goals. 
Over the past several weeks, the U.S. Congress has weighed in on 
several pieces of legislation that--on balance--keep faith with these 
goals.
  Before I speak to each of the free trade agreements, I would like to 
reflect on the currency exchange rate oversight reform bill that the 
U.S. Senate considered just before the pending free trade agreements. 
It is important to note that playing by the rules is an important 
element of fair and free trade, and it is a theme I will address 
several times today in my remarks. The concerns of many Coloradans who 
both supported and opposed this currency legislation were fundamentally 
based on fairness. Both sides understand that intentionally undervalued 
foreign currencies hurt the competitiveness of American exports. I 
supported currency reform legislation because any country that is 
intentionally undercutting American companies and workers through the 
manipulation of its currency, especially if it had agreed to play by 
specific rules, must be held accountable. That is common sense--and a 
matter of fairness. This legislation will allow the United States to 
clearly identify fundamentally misaligned currencies and initiate 
purposeful efforts to work bilaterally and multilaterally to seek 
corrective action. We must work in the interest of American 
manufacturers--and American workers--that rely on a level playing field 
to succeed, while also engaging our trade partners to work 
collaboratively to resolve these important concerns. I believe that 
this currency-related legislation, which passed the U.S. Senate in a 
bipartisan manner, will send the appropriate signal that we expect our 
trade partners to live up to our shared commitment to compete fairly in 
the global marketplace.
  More recently, the U.S. Congress considered free trade agreements 
with Korea, Panama, and Colombia. We enjoy good diplomatic 
relationships with each of these countries and the United States has a 
particular interest in maintaining strong diplomatic and economic ties 
to these countries given our shared values on the international stage. 
More importantly, the Obama administration, in consultation with 
Congress, has been able to incorporate pragmatic and responsible ways 
to address the outstanding concerns raised with each agreement. While 
these free trade agreements are not perfect, I supported the passage of 
all three after studying each one carefully, and hearing from a wide 
range of Coloradans.
  Regarding the Korea free trade agreement, the new concessions that 
protect America's auto industry in addition to reductions in tariffs 
for U.S. products and strong protections for intellectual property and 
labor rights solidified my support for the agreement.
  Over the last several months the Obama administration worked with the 
Korean government to gain concessions that will help American 
manufacturers compete in the Korean market, Asia's fourth largest 
economy. For example, the Koreans have committed to immediately reduce 
their eigh percent tariff on U.S.-built passenger cars, including 
electric vehicles and plug-in hybrids, to four percent and immediately 
reduce their ten percent tariff on trucks to zero. After 5 years, 
tariffs on U.S.-made motor vehicles, including electric cars and plug-
in hybrids, will be reduced to zero. In addition, we have strengthened 
safeguards that will prevent any large influx of Korean cars into the 
U.S. market to protect against unintended effects of the removal of 
trade barriers. These new concessions won the support of both the U.S. 
auto industry and the United Auto Workers.
  With regard to agricultural products, Colorado producers will benefit 
from increased market access in Korea through the reduction of existing 
tariffs on wheat and corn. Existing 40 percent tariffs on certain beef 
products will be phased out over 15 years and the United States will 
engage continuously with Korea to plan the removal of other tariff 
barriers. When I hosted the Korean Ambassador, Han Duk Soo, in Colorado 
in April of this year, I made it clear that Colorado agricultural 
producers expect a reasoned approach to removing restrictions and other 
trade barriers that are in conflict with international sanitary 
standards and sound science. I am very hopeful that this agreement will 
help Colorado producers build a relationship of trust with Korean 
consumers so that they come to understand the high quality of Colorado 
beef and the well-justified pride that our State feels about its beef.
  Autos and agricultural products are just a few areas where American 
producers will gain better access to the Korean market. Overall, the 
U.S. International Trade Commission estimated that tariff cuts alone to 
a variety of U.S. goods could amount to an increase of $10 billion to 
$11 billion of U.S. goods exports alone. This will help produce a

[[Page 16420]]

much-needed boost to the U.S. economy. This agreement also includes 
provisions related to labor and the environment that are the strongest 
standards to enforce domestic environmental and labor laws included in 
any trade agreement. It also includes robust protections for 
intellectual property rights that will set a new benchmark to protect 
American-made ideas.
  In addition to supporting opportunities for American exports, the 
agreement will enhance America's relationship with a strong partner 
that is committed to democratic values on the Korean Peninsula. More 
than 60 years after the Korean war, this trade agreement will serve to 
further strengthen bilateral ties in a region of growing strategic 
value to the United States. As a member of the U.S. Senate Armed 
Services and Intelligence Committees, this was another important factor 
in my support of the Korea free trade agreement.
  Similarly, the Panama free trade agreement, like its Korean 
counterpart, is aimed to help grow the U.S. economy. In the Panama 
agreement, we have also included enforceable mechanisms to protect the 
environment and the rights of Panamanian workers. To address financial 
and tax concerns and further support labor protections, the United 
States worked bilaterally with Panama to institute robust legal reforms 
that protect against the country being used as a tax haven while 
further enhancing labor protections in Panama. The United States and 
Panama have worked collaboratively to strengthen tax transparency in 
support of curbing illicit financial transactions associated with money 
laundering activities. Notably, due to its positive actions, Panama was 
removed from the Organization for Economic Co-operation and Development 
``Gray List'' of countries that have agreed to, but not yet adopted an 
international tax transparency standard.
  These improvements to the Panama free trade agreement will be 
incorporated along with reductions in tariff barriers that will improve 
access to the Panamanian market for U.S. goods and services. Again, 
this should give a boost to American business at a time when our 
government should be doing everything it can to help grow our economy.
  Currently, U.S. industrial goods face an average tariff of seven 
percent in Panama and U.S. agricultural goods face an average tariff of 
15 percent, while most of Panama's products enter the United States 
duty-free. After implementation of this agreement, more than 87 percent 
of U.S. exports of consumer and industrial products to Panama will 
become duty-free immediately, with remaining tariffs phased out over 
ten years. Almost half of U.S. agricultural exports will also benefit 
from immediate duty-free treatment, with most of the remaining tariffs 
to be eliminated within 15 years. Of particular importance for Colorado 
is beef, which will see an immediate removal of a 30 percent tariff for 
prime and choice cut beef, and wheat, which will lock in its already 
tariff-free treatment.
  As Panama embarks on a historic $5 billion infrastructure project to 
revamp and expand the Panama Canal, American businesses will be better 
situated to compete for opportunities in the Panamanian market as a 
result of this free trade agreement. Additionally, this agreement will 
enhance our strong relationship with Panama, which serves as a major 
international trade thoroughfare for the United States and the world.
  And finally, the Colombia free trade agreement, which was a vote that 
took even greater deliberation.
  Colombia is a strong U.S. ally in Latin America and is a critical 
regional and global partner. Colombia's market is the third largest for 
the United States in Latin America and U.S. producers have been losing 
market share quickly as the Colombians strengthen economic ties with 
Canada, the European Union and the Mercosur countries of Argentina, 
Brazil, Paraguay and Uruguay. As other countries facilitate trade with 
Colombia, American producers have faced continued tariffs on goods 
exported to Colombia, while Colombian goods face few tariffs into the 
United States. Currently, the average U.S. tariff on the few Colombian 
goods subject to a tariff is 3 percent. Colombia's average tariff on 
U.S. exported goods is 12.5 percent. This agreement will increase 
market access for U.S. goods and services in Colombia by immediately 
eliminating duties on 80 percent of U.S. exports to Colombia, with all 
remaining tariffs eliminated within 10 years.
  These numbers show why American businesses have been eager to level 
the playing field with foreign competitors that have benefited from 
preferential tariff treatment in Colombia. Still, there have been long-
standing concerns with Colombia's history of violence and its human 
rights record, issues that deeply concern not only me, but many 
Coloradans. I have looked to Colombia and supporters of this agreement 
to make the case that adequate progress has been made to determine if 
the United States should move forward with a trade agreement at this 
time.
  The Colombian and U.S. governments, as well as organizations that 
have opposed and supported the agreement, acknowledge the problematic 
record Colombia has had on human rights and labor protections. Most 
agree that progress has been made, though many disagree to what extent 
that progress has improved labor conditions and lessened human rights 
violations. After meeting with groups on both sides of this debate, I 
concluded that maintaining the status quo was not the best answer. 
Leaving things as they are now would not create any more incentives for 
Colombia to maintain or further cultivate its commitment to resolving 
issues of violence. Nor do I believe that the status quo would 
strengthen the ties with this key ally in South America. I ultimately 
believe that the recent labor and legal reforms in Colombia represent 
concrete steps in the right direction. The commitment of Colombia's 
political leadership to improving its record is also an indication that 
Colombia can move beyond its past. The primary objective is for our two 
countries not only to maintain the shared goal of reducing violence and 
protecting workers' rights, but also to become stronger economic 
partners, enabling American business to compete in Colombia's market on 
a level playing field with our international competitors. Both of these 
goals help justify moving beyond the status quo.
  Let me be clear: we must continue to work collaboratively with the 
Colombian government to ensure that the appropriate steps are taken 
toward responsible and meaningful reforms. A meaningful step in this 
direction is President Obama's commitment to allow the agreement to 
enter into force only when Colombia has sufficiently met predetermined 
benchmarks. These benchmarks include efforts to increase protection of 
labor activists, enforce core labor rights and reduce impunity for 
perpetrators of violence against union members. Additionally, the 
underlying agreement includes strong labor provisions that protect the 
right to organize, the right to bargain collectively, and to provide 
protections against forced labor, child labor, and employment 
discrimination.
  These changes may not all happen overnight, but we can ensure that 
what remains to be fixed will be supported by our strengthened economic 
relationship and the social and economic incentives for Colombia to 
maintain a positive trajectory in reducing violence. Does the passage 
of this agreement mean that all of the ills facing Colombia will be 
cured? I make no such assumption, and I know it will take work and 
diligent oversight. The burden will be on the Colombian government to 
follow through on promised reforms and ensure they have the intended 
effect. It will also be up to this administration to ensure that the 
benchmarks laid out in its labor action plan are met to the greatest 
extent possible and that Colombia continues to meet these goals. 
Finally, it will be up to Congress to provide ongoing oversight to 
ensure everyone is meeting their responsibilities. I, for one, will be 
watching.

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  In addition to these agreements, I note briefly that Congress came 
together in a bipartisan manner to reauthorize a robust Trade 
Adjustment Assistance Program that will assist workers, firms and 
farmers to retrain and retool so they can better compete in the global 
economy. This was a necessary precursor to my support of these three 
free trade agreements.
  In sum, the free trade agreements with Korea, Panama, and Colombia, 
while not perfect, present strong opportunities for Colorado and U.S. 
businesses while also including some of the most robust labor and 
environmental provisions that we have ever had in a trade agreement 
with any country. Trade issues are never clear cut, but simply put, 
trading with our neighbors and partners can help our economy when we 
set the terms fairly and find balance. By helping to ensure that our 
trading partners play by fair rules, and by opening foreign markets for 
U.S. products, the United States is better positioned to win the global 
economic race.

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