WASHINGTON -- Congressional approval of proposed free-trade agreements with Colombia, Panama and South Korea would boost United States exports to those countries, U.S. Trade Representative Susan Schwab told the annual conference of the U.S. Export-Import Bank. Most Colombian products, for example, have duty-free access to the U.S., while tariffs on U.S. exports of industrial and consumer goods average 14 percent, she said. Tariffs on U.S. agricultural exports are even higher. Despite those benefits, the House of Representatives had not conducted a single hearing on the agreement in the more than 500 days after it was signed until President Bush submitted it to Congress earlier this month, she said. “That deal deserves a straight up or down vote,” she said.
The House on April 10 voted to end the requirement under the president's 'fast-track' authority demanding a vote without changes to the pact within 90 days. Democrats are expected to postpone a vote on the controversial Colombian treaty until after the elections in November. The Panamanian agreement would also lead to substantial reductions in tariffs on U.S. exports, Schwab said. In addition, it would give U.S. companies a better opportunity to win contracts related to the expansion of the Panama Canal. South Korea’s average tariff rates are significantly higher than those of the U.S. The free-trade deal would eliminate those tariffs on 95 percent of U.S. manufactured goods and 60 percent of U.S. farm exports. The South Korea agreement is especially attractive because of the size of its economy -- about $1 trillion -- and its high per capita income, she said. Schwab noted that other countries are negotiating at least 100 regional and bilateral trade deals that exclude the U.S.
Schwab said a successful completion of the Doha round of World Trade Organization negotiations is still possible by the end of the year, but that negotiators need to make significant achievements in talks on improving market access in agriculture, manufactured goods and services in the next few weeks. But, she added, success in the Doha round “can be achieved only if advanced developing countries like China and India step up” by offering improved concessions. While the Bush administration only has nine months left in office, Schwab said it will continue to push its trade agenda aggressively. “We have every intention of sprinting to the finish line,” she said.
Journal of Commerce
