There is no question that the American people are tired of the current economic conditions and looking for action. They want something that will revamp the economy and want to see a reduction in unemployment. According to a recent survey, 35 percent of Americans believe that unemployment is the biggest problem facing the country, the highest percentage since October 1983.
Even though there are no easy solutions for our current economic situation, there are things we can do to create jobs right now. We should consider passing free trade agreements (FTA) with Colombia, Panama and South Korea. In his State of the Union address, President Obama made the case for trade, saying: "The more we export, the more jobs we create here at home."
One in particular that I suggest be in top of the list is passing the FTA between the United States and Colombia. This FTA has been floating in the U.S. Congress for more than four years since it was signed in November 2006. This FTA has received praises and strong opposition. Those in favor agree that it will increase U.S. exports and strengthen our ties with a key democratic ally in South America. Those opposed in Congress and the U.S. labor movement contend that the Colombian government has not done enough to curb violence against trade unionists. I am not in total agreement with this view. I have been in Colombia for the last three years and see a country with great opportunities and a great partner for the United States. LEARN MORE.
If the U.S.-Colombia FTA is implemented, this would eliminate barriers to billions of dollars of U.S. exports. In 2010, U.S. producers exported more than $11 billion in goods to Colombia, making it our third-largest market in Latin America, behind only Mexico and Brazil. Two-thirds of U.S. exports to Colombia are manufactured goods. Our top exports are chemicals, plastics, electrical equipment, excavating machinery, telecommunications equipment, computers and computer accessories, industrial engines, and drilling and oilfield equipment, fuel oil and corn. The U.S. International Trade Commission estimates that the agreement would boost U.S. exports by an additional $1.1 billion after full implementation.
The passage of the Colombia agreement would have a positive impact on U.S. exports in the politically potent manufacturing and agriculture sectors, as well as the less visible but equally important services sector. This in turn will create employment, reduce unemployment, increase the tax base, bring an influx of capital that will in turn will flow into other markets like real estate.
The risk that the United States run for the inaction on this FTA is the loss of expanding our manufacturing, agricultural and service industries. Above all, the biggest loss is the loss of the Colombian market, if we do not do it another country will do it. We could suffer a permanent loss of market share to competitors in countries that are moving ahead with trade agreements with Colombia (recently Colombia has signed FTAs with the European Union and Canada. Also, South Korea has seen the potential of the Colombian market and is in the process of an FTA agreement. Also, Japan has already approached Colombia with the goal of an FTA.
FYI - U.S. exporters already appear to be losing market share because of delayed implementation of the Colombia agreement. According to the Embassy of Colombia in Washington, the U.S. share of Colombian wheat imports dropped from 72 percent in 2008 to 46 percent in 2009, with Canada and Argentina filling the gap. The U.S. share of Colombia's corn imports fell even further, from 80 percent to 37 percent, with Argentina and Brazil the main beneficiaries.26 Implementing the agreement would help U.S. exporters stem or reverse those losses.
This may not be the best solution, however we do not have many options right now to revamp our economy. If we do not move forward with the FTA with Colombia right now, what is our politicians going to do to address our current situation to lower our national debt, lower our unemployment and provide an opportunity to our manufacturers to improve our production levels and in turn improve our economy.
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