Ending a long stalemate, Congress gave final approval to new trade agreements with South Korea, Colombia and Panama Wednesday in a move aimed at increasing U.S. exports and creating more jobs.
Among the potential winners: U.S. farmers who grow cherries, potatoes and apples, big crops in the Pacific Northwest. Farmers expect sales to rise substantially when tariffs are lifted.
“There is no question that these agreements will increase jobs,” Republican Rep. Doc Hastings of Washington said in a speech on the House floor.
The pacts, approved by wide margins in both the House and Senate, represent the nation’s biggest trade deals since passage of the controversial North American Free Trade Agreement in 1994.
In the House, the South Korean agreement passed 278-151, the Panama agreement 300-129 and the Colombia agreement 262-167.
Later in the Senate, with the support of Democrats Patty Murray and Maria Cantwell of Washington, the South Korean agreement passed 83-15, the Panama agreement 77-22 and the Colombia agreement 66-33.
President Barack Obama had lobbied hard for the agreements. He said the South Korean trade pact alone – the largest of the three – would create 70,000 new jobs in the United States.
Members of Congress rushed to wrap up the deals before South Korean President Lee Myung-bak was to deliver a speech at 1 p.m. today to a joint session of Congress. He planned to go to the White House tonight as part of his official state visit.
After the vote, Obama said he looked forward to signing the landmark agreements, which he called “a major win for American workers and businesses.” The president wants to double U.S. exports by 2014.
“Tonight’s vote, with bipartisan support, will significantly boost exports that bear the proud label ‘Made in America,’ support tens of thousands of good-paying American jobs and protect labor rights, the environment and intellectual property,” Obama said. “American automakers, farmers, ranchers and manufacturers, including many small businesses, will be able to compete and win in new markets.”
While the deals marked a clear win for Obama, Republican House Speaker John Boehner of Ohio claimed credit as well, calling them part of the GOP’s broader jobs agenda.
Many Republicans were irked that the deals, first negotiated by the administration of President George W. Bush, had languished for so long.
“Frankly, it shouldn’t have taken this long for it to happen,” Boehner said. “While a Democrat-controlled House sat idle, other nations expanded their trading ties, and American competitiveness suffered.”
Hastings, chairman of the House Natural Resources Committee, said the agreement with South Korea would benefit Washington state potato growers and processors by immediately ending an 18 percent tariff they must pay when exporting their products.
Calling the trade agreements “critical to my constituents,” Hastings predicted that apple growers would see a surge in their sales.
While the pacts divided many Democrats across the nation, they united most members of Congress from this state, where one of every three jobs is linked to international trade.
“If we’re going to grow, we need access to other markets,” said Democratic Rep. Adam Smith of Washington, noting that 95 percent of the world’s population lives outside the United States.
Democratic Rep. Jim McDermott of Washington joined critics who objected to Colombia’s record with labor and human rights. Many opponents, concerned that prior trade deals have driven U.S. jobs overseas to places where workers are afforded few rights, wanted more protections for foreign workers written into the trade pacts.
In a speech to his colleagues, McDermott said members of Congress had an opportunity to back up their talk about believing in human rights.
“We talk about it all the time,” he said. “We talk about it for every country in the world, but when we write a trade agreement for Colombia, we’re unwilling to write in the demands for the Colombian workers. That’s what’s wrong with this.”
Rob Hotakainen: 202-383-0008
rhotakainen@mcclatchydc.com
ENDING TARIFFS
Highlights for agriculture under the new trade agreements with South Korea, Panama and Colombia:
• South Korea would end its 24 percent tariff on sweet cherries. The tariff adds about 75 to 90 cents per pound to the price consumers there pay.
• South Korea will eliminate its 45 percent tariff on all apple varieties, except for Fuji, over 10 years. The 45 percent tariff on Fuji apples will be phased out over 20 years.
• South Korea will scrap its 45 percent tariff on European pear varieties over 10 years. The 45 percent tariff on Asian pears will be phased out over 20 years.
• Panama will end its tariffs on apples, pears and cherries. Tariffs currently are 1 percent for cherries, 2 percent for apples and 5 percent for pears.
• Colombia will eliminate its tariffs on apples, pears and cherries. Currently, the tariffs are 15 percent.
Source: Northwest Horticultural Council, Yakima
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