Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, Indianapolis Star
”Riding High on Export Wave”

The president and Congress are working to deliver a speedy, broad and effective economic growth package. While the stimulus will help, we should remember that exports have already been helping our economy, and Indiana has been a part of that success. In 2006, America exported a record $1.4 trillion, and during the third quarter of last year, nearly 30 percent of our economic growth was the result of trade.

Now, for the first time in nearly a decade, the Department of Commerce has released new export statistics that show how much our farmers and workers depend on foreign customers. Indianapolis has been riding the export wave. Greater Indianapolis businesses exported $7.3 billion in 2006 -- one of the largest exporting communities in the Midwest.

Indianapolis is a center for technology, innovation and education, and is a manufacturing and services powerhouse. By working to expand its presence in global markets, Indianapolis has benefited tremendously from global trade and engagement.

One way to significantly increase American competitiveness and expand Indiana's exports is by lowering barriers to trade. The most effective way to do that is through free trade agreements. In December, Congress passed in an overwhelming, bipartisan fashion the Peru FTA. While this was an important step, now Congress can do more by quickly passing pending FTAs with Colombia, Panama and South Korea.

FTAs do more than enhance trade; they help strengthen the rule of law and promote democracy. Nowhere is this more important than Colombia, one of our staunchest regional allies.

Under President Alvaro Uribe's leadership, Colombia has experienced real change and the U.S. has been a proud partner in Colombia's success. We have contributed more than $5.5 billion to Plan Colombia, a bipartisan initiative of President Bill Clinton and Speaker Dennis Hastert to promote peace, combat the narcotics industry, revive the economy and help strengthen democracy. Between 2002 and 2006, violent crime and terrorism dropped by nearly half; violence against labor leaders decreased about 70 percent; and since 2000, 25 percent of Colombians who were in poverty were lifted out.

While Indiana's merchandise exports grew to nearly $23 billion in 2006—up more than 50 percent since 2002—Indiana's exports to Colombia and Panama more than doubled. Indeed, the three pending FTAs will make U.S. products even more competitive in markets that combined have nearly 100 million consumers with a gross domestic product of more than $1 trillion.

Ironically, there is already free trade between the U.S. and Colombia—one-way free trade. Congress has already granted Colombia trade preferences, and today 92 percent of Colombia's imports have duty-free access to our market, while our exporters pay hundreds of millions in duties. An FTA eliminates these barriers and provides an even playing field for American exporters.

These three FTAs help regional exporters both big and small. One example is Cummins, which I will be visiting today. Cummins' world-class engines, and innovative technologies and services are found in almost every corner of the world. These FTAs make American exporters, like Cummins, even more competitive.

Indeed, every time we have implemented an FTA, American exports increase. Consider CAFTA-DR, our agreement with five Central American countries and the Dominican Republic where our trade deficit has turned into a surplus.

Indianapolis made the decision to engage with the world and it has paid off with a strong economy. Now we have the opportunity to increase our competitiveness by lowering trade barriers and strengthening key alliances.

Now is the time to act and support critical agreements with Colombia, Panama and Korea. They are simply the right thing to do for Indianapolis and our nation.

Please visit www.TradeAgreements.gov for updated information on pending free trade agreements.