Fargo, N.D. –Trade agreements with South Korea, Panama and Colombia hold tremendous potential for job creation and business expansion in North Dakota was the message stressed by Congressman Rick Berg today at a trade-focused roundtable held with North Dakota businesses.

Berg met with eight Fargo-area businesses and representatives from the North Dakota Trade Office (NDTO), North Dakota Department of Agriculture, the North Dakota State University (NDSU) Department of Agribusiness and the U.S. Department of Commerce this morning at NDSU to discuss the benefits that North Dakota could see if free trade agreements with South Korea, Panama and Colombia are implemented.

“These trade agreements mean more opportunities for American businesses and more American jobs,” Berg stated. “A strong export agenda is not only a critical part of our national recovery, but will help North Dakota businesses grow and create jobs as well.  Today’s roundtable demonstrated how free trade has directly benefited our local businesses and our state’s ability to compete in a global market.”

Berg also stressed the direct economic impact that the agreements could have on North Dakota, noting the benefits that past trade agreements have held for North Dakota.  Berg noted that two trade agreements implemented in 2004, Chile and Singapore, had increased North Dakota exports by 545 percent and 450 percent, respectively.

“The trade agreements with South Korea, Panama and Colombia could increase exports by at least $23 million in North Dakota alone,” Berg stated. “It’s important that our local businesses are aware of the tremendous potential that these agreements hold for opening markets and increasing our state’s ability to export our goods and services.”

Berg noted that North Dakota currently exports over $2.5 billion in manufactured goods, $3.25 billion in agricultural products and $500 million in services each year.  He applauded the growth that North Dakota has experienced in the last five years, stating that the state saw the fastest growth rate among the 50 states over that same time period by doubling exports from $1.2 billion to $2.5 billion in manufactured goods.

Berg also emphasized the role that trade plays in creating jobs, noting that more than 7,700 North Dakota jobs are directly supported by exports and nearly 100,000 jobs in North Dakota are trade related.

Participants of today’s roundtable included: John Mohn, Ideal Aerosmith; Stacy Anthony, Brandt Holdings; Matt Breker, Seeds 2000; Tom Shorma, WCCO Belting; Ron Martin, Midwest Motor Express; Tom Kenville, Roll-A-Ramp; Casey Bryl, Amity Technology; Brad Storbakken, North Dakota Mill; Tom Wollin and Jiwon Kim, NDTO; Stephanie Sinner, North Dakota Department of Agriculture; Dr. Bill Wilson, NDSU Dept of Agribusiness and Applied Economics; and Heather Ranck, International Trade Specialist, U.S. Department of Commerce.

Background

The President submitted the long-awaited free trade agreements with South Korea, Panama and Colombia to Congress on Monday, October 3. The agreements were marked up by the House Ways and Means Committee today and passed through committee with bipartisan support.  It is expected that the agreements will be considered on the House floor in the coming weeks.

A long-time advocate of free trade, Berg is one of three freshman members of Congress serving on the House Ways and Means Committee.  While a member of the North Dakota Legislature, Berg was influential in the formation of the North Dakota Trade Office, which nearly doubled North Dakota’s merchandise exports in just four years.    

In March, Berg spearheaded House freshmen efforts to urge President Obama to expeditiously move forward the pending trade agreements.  A letter stressing the immediate need for the passage of these free trade agreements was signed by 67 House freshmen and sent to President Obama March 1.

Benefits of the Pending Trade Agreements

·         Creating Quality U.S. Jobs: Using the President’s own metrics, these trade agreements could create 250,000 U.S. jobs.

·         Expanding U.S. Exports and Creating Economic Growth: The independent U.S. International Trade Commission estimates that implementation of the three pending trade agreements would increase U.S. exports by at least $13 billion and add at least $10 billion to U.S. Gross Domestic Product per year.

·         Helping U.S. Small Businesses: In 2008, more than 80 percent of U.S. exporters to South Korea, Colombia, and Panama were small and medium-sized enterprises that exported $12 billion to those countries.

·         Increasing Agriculture Exports: The American Farm Bureau Federation estimates that U.S. farm exports could increase by more than $690 million per year to Colombia, more than $195 million per year to Panama, and more than $1.8 billion per year to South Korea.

·         Lowering Barriers to U.S. Goods: Passing the pending trade agreements would eliminate, or substantially lower, the tariffs and non-tariff barriers on U.S. exports in all sectors and create job opportunities in the United States.

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