Letter Supporting South Korea, Colombia, and Panama Trade Agreements

The Honorable Max Baucus
Chairman
Committee on Finance
United States Senate
Washington, DC 20510

The Honorable Orrin Hatch
Ranking Member
Committee on Finance
United States Senate
Washington, DC 20510

Dear Chairman Baucus and Ranking Member Hatch,

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, strongly urges you to support the implementing bills for the trade agreements with South Korea, Colombia, and Panama in the June 30 “mock” markup hearing.

These trade agreements would create tens of thousands of jobs for American workers and farmers — and businesses both large and small — all across the nation. At a time when millions of Americans are out of work, the agreements would level the playing field for American exporters and create real business opportunities for American businesses and employers. For example, South Korea currently collects $4 in tariffs on U.S. exports for every $1 the United States collects in tariffs on South Korean goods. A similar lopsidedness holds back American trade with Colombia and Panama as well.

Upon implementation, the agreements would immediately eliminate most of those tariffs, with nearly all removed within three years. The accords would also open these countries’ dynamic services markets, protect the intellectual property of American innovators and creative artists, and remove non-tariff barriers that are especially harmful to smaller companies.

Indeed, for America’s small- and medium-sized businesses, these agreements are critical. Nearly 30,000 U.S. small- and mid-sized companies export to South Korea, Colombia, and Panama, and they account for roughly one-third of U.S. exports to these countries. Approval of the pending trade agreements would permit these firms to boost their sales and allow many more companies to tap these growing markets.

The cost of inaction is high. Other nations are racing to implement their own trade deals with South Korea, Colombia, and Panama, threatening to put American workers at a competitive disadvantage. This coming Friday, July 1, the European Union-Korea Free Trade Agreement will enter into force, and the Canada-Colombia Free Trade Agreement will do so on August 15. Largely as a result of Colombia’s earlier trade accord with Mercosur, U.S. farmers and ranchers have already lost more than $1 billion in sales to Colombia due to trade diversion. A U.S. Chamber study has warned that the United States would lose more than 380,000 jobs and $40 billion in export sales if the pending agreements suffer further delays.

South Korea, Colombia, and Panama are among America’s most important allies in the world. These are robust democracies whose citizens share U.S. values and have long stood by us in strategic parts of the world. Boosting American trade ties with these nations also strengthens these alliances and advances the U.S. national interest in ways that would pay dividends beyond the creation of needed jobs and new export sales.

The Chamber also supports Trade Adjustment Assistance, and appreciates the bipartisan efforts to reach a reasonable compromise on the substance of legislation to renew this program. The resulting legislation is respectful of the difficult fiscal circumstances facing our country, and we believe it deserves support. The Chamber also supports renewal of the Andean Trade Preference Act and the Generalized System of Preferences as contemplated in the bills before the committee.

Congressional leadership has brought approval of these trade agreements within reach, and the Chamber shares the passionate support for these agreements on both sides of the aisle. To level the playing field for trade, create American jobs, and reaffirm U.S. leadership, the Chamber urges you to support the implementing bills for the trade agreements with South Korea, Colombia, and Panama in the June 30 “mock” markup hearing and to oppose all amendments.

Sincerely,

R. Bruce Josten

Cc: The Members of the Senate Committee on Finance