Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, Terre Haute Tribune-Star
”Flashpoint: Exports Bring Vigor to Vigo County”

Better jobs. Growing exports. A stronger economy for Terre Haute, for Indiana and for America. During last year’s third-quarter, nearly 30 percent of America’s economic growth resulted from international trade. Opening more foreign markets equals more opportunities for Indiana’s farmers, ranchers, workers and businesses.

In 2006, Indiana exported merchandise shipments totaling nearly $23 billion – 50 percent more than five years earlier, including $2 billion in agriculture exports. The most effective way to keep this trend going is lowering barriers to trade and opening new foreign markets.

Fortunately, Congress can do that by approving free trade agreements (FTAs) with Colombia, Panama and South Korea. These important agreements deserve to be passed as quickly as possible.

These FTAs create new export opportunities here in Vigo County and around the country. Through November 2007, U.S. exports grew 12.3 percent to a record $1.5 trillion – more than any other nation in the world, and at 12 percent of GDP, more than any time in American history.

These FTAs simply make sense. For example we already have free trade between the U.S. and Colombia—one-way free trade. The U.S. Congress for the past 17 years has overwhelmingly granted Colombia trade preferences, and as a consequence, 92 percent of Colombia’s imports have duty-free access to our market, while our exporters pay hundreds of millions of dollars in duties. An FTA eliminates these barriers and provides an even playing field for American exports to Colombia. Importantly, these agreements will also strengthen the rule of law and help democratic governance take hold.

Under President 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 Clinton and Speaker 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.

To deny Colombia this agreement would not only be an economic mistake, it would set back social justice in the hemisphere and would be a huge foreign policy blunder.

Like Colombia, South Korea borders a country led by a far different vision than ours. This agreement modernizes our longstanding alliance and strengthens our engagement with a key ally in a strategically-important part of the world. Yet, as is the case with Colombia and Panama, Indiana’s exporters are still not achieving their full potential.

An FTA with Korea removes virtually all remaining developing economy protections. Today, less than 10 percent of our exports enter Korea duty-free. After the FTA, that increases to 98 percent.

These three FTAs bring enhanced access for Indiana’s farmers, workers and businesses so they can sell more crops, chemicals, polymers and high-tech value-added goods and services. These agreements combined open up markets with 100 million consumers and a GDP of over $1 trillion.

FTAs help exporters both big and small. One example of a local company that will be more competitive is Clabber Girl in Terre Haute, which I’ll be visiting today. With sales of baking powder, cornstarch and mixes throughout the world, Clabber Girl is well positioned to enter new markets and expand their presence in others with the level playing field FTAs create.

This Administration wants to work with Congressional leaders move forward on free trade. While we’re pleased Congress recently approved the Peru FTA, it is critical that all three remaining agreements are approved as quickly as possible.
These agreements are simply in our country’s best security and economic interest. Now is the time to act, and for voices of those who care about American exports and American competitiveness to be heard.

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