Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks at the Bogotá Chamber of Commerce
Bogotá, Colombia

Thank you. I’m pleased to be in Bogotá and to have this opportunity to meet with the local business community.

Today, I want to talk about the importance of the commercial and political relationship between the U.S. and Colombia. I’ll also share my hope for the passage of the U.S.-Colombia Free Trade Agreement.

First and foremost, I have to say that I am overwhelmed by the turnaround that Colombia has made in recent years.

I was in Medellin just a month ago with a bipartisan U.S. Congressional delegation. Later today I will be joined by another delegation here in Bogotá. I want members of the United States Congress to see what I have seen: an unprecedented transformation of an entire country.

Today six members of the United States Congress will be joining me to see the positive economic and social changes that have been driven here by President Uribe.

We will meet with business and government leaders so they can hear first hand the changes that have taken place.

The U.S. is proud to have contributed to this success. Since 2000, we have contributed nearly $5 billion to Plan Colombia, an initiative to promote the peace process, combat the narcotics industry, revive the economy and strengthen democracy.

The good news is that Plan Colombia has worked. I know that many of you have seen these changes firsthand, but they are worth noting:

• Since 2000, kidnappings are down by 76 percent, terror attacks by 61 percent, and homicides by 40 percent.
• Cocaine production is down 27 percent and seizures bound for the U.S. have increased by 212 percent.
• Trade unionists deaths have decreased by about 70 percent between 2001 and last year;
• And in the same timeframe, 25 percent of Colombians who were in poverty were lifted out;
• Colombia’s economy has grown an average of 5.2 percent each year since 2002 and it grew eight percent in first quarter of this year.

These results are impressive. But perhaps even more impressive is that Colombia’s turnaround has been accomplished while remaining true to democratic principles.

In the past, Latin American countries being overrun by guerrilla movements and drug cartels have reacted with dictatorships, martial law and cancelled elections. President Uribe and the Colombian people deserve praise for their commitment to upholding democracy.

This commitment to reducing violence and creating stability has improved the standard of living for Colombian families and children. According to government sources here, since President Uribe took office:

• 1.4 million additional students now receive school meals;
• 92 percent of Colombian children, up 11 percent, are enrolled in school;
• 2.8 million Colombians have been added to the Social Security program; and
• More than three million people have entered the public health system.

Tomorrow, we will visit Bojaya a community that symbolizes much of this progress and which has risen from a tragic past and now faces a bright future.

We will visit a community whose entire population fled because of fighting between guerrillas and paramilitary groups. Now it is a place of rebirth and opportunity.

The U.S. Government, through the Agency for International Development, is collaborating with President Uribe's efforts in Bojaya to strengthen health and education services.

President Uribe is committed to restoring security, reconstructing the area, and providing social and economic support throughout Colombia.

These improvements in the lives of the citizens of Bojaya—and throughout Colombia have been made possible because of Colombia’s efforts at peace and stability, and because of robust economic growth.

Much of that economic growth is the result of efforts to attract investment and create an environment for business.

Colombia is what Businessweek recently dubbed, an “extreme emerging market.” A country with a rising stock market, an influx of foreign direct investment and a growing destination for tourists—but also a country with a reputation for violence.

The good news is that the factors lending to that reputation are rapidly changing and that global investors have recognized that.

Unemployment is down, inflation is down and investment is up, but the most important factor for business decisions in Colombia is the immeasurable value of confidence.

As business leaders—your presence here today demonstrates your confidence in Colombia’s economy, Colombia’s people and Colombia’s future.

You have the opportunity to tell the story of economic opportunity and growth and hope that is happening on the ground in this country.

Telling that story has been a primary focus of the Bush Administration in Washington, D.C. because we believe that ours is a very important relationship. It is important economically and it is important geopolitically.

Colombia is our fifth largest trading partner in Latin America with two-way trade between our nations reaching $16 billion last year. Colombia is also our largest export market for agriculture products in South America. In 2006, U.S. goods exports bound for Colombia totaled $6.7 billion.

Colombia has enjoyed preferential access to the U.S. market. In 2006, 92 percent of U.S. imports entered the U.S. duty free.

The pending FTA would create similar opportunities for U.S. companies and enhance the access and choices of Colombia’s businesses and consumers.

We believe there is tremendous room for growth and the way to facilitate that growth is through the free trade agreement.

As you well know, the agreement stands now before the United States Congress. We believe the economic case is clear.

We have been making the economic case and will continue to do so, but there is also a broader, overarching case to be made for geopolitical stability.

We know there are some in the region with competing visions for the future of the Western Hemisphere.

The voices in Colombia’s backyard do not call for open markets, competition and economic freedom. They believe in strong government control - not the rights and aspirations of the individual.

Our voice must be louder.

Our voice must proclaim that a stronger, more peaceful and prosperous Colombia is in the best interest of Colombia and in the best interest of our hemisphere.

Colombia is a staunch ally that has stood by us for decades—even sending troops to fight with us in the Korean War—and has been our partner in the war on terror.

Now is not the time for the U.S. to turn its back. While some want to focus on Colombia’s troubled legacy of violence and drug trafficking—we must shift that focus to Colombia’s progress and future of hope.

Colombia is at a critical moment. The United States has been an important partner in ushering in a new era of opportunity and prosperity. Now is the time to take that partnership to the next level.

We must help Colombia move forward and continue to embrace the principles of democracy, justice and the rule of law. Turning back is not an option.

President Bush is committed to a secure and prosperous Colombia. I know each of us here today shares that vision.

The free trade agreement is our best opportunity.

Working together in government and in the private sector we must tell Colombia’s remarkable story and let the world know that this is a place for business, a place for prosperity and a place with a bright, hopeful and secure future.

Thank you.