Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Colombian Independence Day Celebration
Washington, D.C.

Thank you, Jose Cardenas. Thanks for having me here for today’s celebration.

Independence Days are special to the people of a country. They signify a unified struggle for a better life and an achievement upon which a nation is built.

A determined people fought for independence from Spain in July of 1810. Their hard-fought independence was achieved as Simon Bolivar, Colombia’s first president, led the country to freedom.

Today is a proud day for Colombia and for Colombian-Americans. We have gathered to celebrate independence and look forward with promise to a future of growth and prosperity for the Colombian people.

We are making strides with our economic relationship.

Through the elimination of tariffs and other barriers on goods and services, our economies can prosper. The FTA will establish a stable legal framework for U.S. investors operating in Colombia.

Our trade relationship with Colombia is “win-win.” This agreement will expand trade and employment in both markets, as Colombia is a commercially significant market and a complementary economy to the U.S.

It will drive new investment opportunities for companies in both countries, behind a more certain and predictable environment, enhancing their competitiveness and ability to keep jobs in the region.

The bilateral relationship between the U.S. and Colombia is strong. U.S.-Colombia bilateral trade has grown by 75 percent over the past decade, from $9 billion a year in 1996 to approximately $16 billion in two-way trade in 2006.

Our trading relationship continues to produce solid results:

• The U.S. trade deficit with Colombia was approximately $2.6 billion in 2006, down from $3.4 billion in 2005.
• U.S. goods exports in 2006 were $6.7 billion, up from $5.5 billion the previous year.
• U.S. goods imports from Colombia were $9.3 billion, up from $8.8 billion.
• And, the stock of U.S. foreign direct investment (FDI) in Colombia in 2006 was approximately $4.9 billion, mainly in the natural gas, coal mining, chemical and manufacturing industries.

In a region recovering from economic and political instability, this FTA will encourage strong economic policies and commitment to rule of law. It will bolster a strategic ally in the war on drugs and terrorism.

The U.S. Congress further opened the U.S. market to Colombian products through the Andean Trade Promotion and Drug Eradication Act. Since Congress passed this Act in 2002, three million jobs have been created in Colombia.

The State Department reports that about 250 U.S. companies have business operations in nearly every sector of the Colombian economy.

And, according to the Latin America Trade Coalition, job opportunities in Colombia are positive. More than 8,000 U.S. companies export to Colombia, 84 percent of which are small and medium-sized firms.

Colombian exports to the U.S. supported an impressive 600,000 jobs in 2006, the Latin America Trade Coalition also states.

Most of the jobs created by exports to the U.S. are outside the major cities. This strengthens the economy in rural areas and helps to reverse decades of migration to the capital.

I am glad to say that President Uribe is a close friend and ally of President Bush and the Administration and is a strong proponent of the U.S.-Colombia FTA which both countries completed in February 2006. He has vowed to see the agreement through to implementation.

With the help of President Uribe, we must continue to push its implementation. As former Spanish Prime Minister Jose Maria Aznar wrote in the Wall Street Journal this past Monday, it would be “. . .unbearably cynical. . .to cite the failings of the Colombian democracy as an excuse to kill the U.S.-Colombia Free Trade Agreement. . .closing the door on Colombia either on the security front or on trade will strike at the very heart of the cause for freedom in Latin America.”

Others have a different perspective on what the neighborhood should look like. While others seek to suppress people, ideas and debate, we seek the empowerment of the individual.

As Colombian independence approaches its 200th anniversary, we must continue to work forward without hesitation. This FTA clears a path for greater democracy and integration.

The vision of the Western Hemisphere is one of growth and prosperity. Growth empowers people with the tools to take ownership and improve their lives. It promotes trade, investment and encourages economic expansion.

It strengthens the delivery of true social justice, which we believe is about giving everyone an equal opportunity to succeed. We will continue to accomplish this vision through our relationship with Colombia.

I am pleased that we share a vision in the Western Hemisphere that supports free trade, economic prosperity and political stability. A free trade agreement with Colombia is in the best interest of both of our countries.

We are proud of partnership and friendship. I look forward to deepening our already prosperous relationship.

On behalf of President Bush, congratulations on your independence day!

Thank you.