We’re heartened by the news that President Barack Obama has cut a deal with South Korea on a long-stalled free trade pact.
The pact with Korea was signed in 2007 by President George W. Bush, but never ratified by Congress because of persistent opposition from organized labor. Obama will send to Congress a revised agreement, though the guts of the original deal remain in place. The pact will still pry open South Korea’s market for U.S. exports: cars, trucks, agricultural goods, and services.
When he campaigned in 2008, Obama talked like a free-marketer. But free trade has not been a high priority for the administration. We hope the president’s action on the Korea pact signals a welcome, if belated, acknowledgement that opening other countries’ markets to U.S. manufactured exports is a solid way to create jobs here. It’s key to achieving the president’s goal, stated a year ago, of doubling U.S. exports over five years.
So what about pending U.S. agreements with Colombia and Panama? They have languished along with the Korea deal.
The news there isn’t nearly as bright. Just before Christmas, White House spokesman Robert Gibbs declared that the president would not send the Colombia trade pact to Congress “because it doesn’t have the votes.” The Panama pact also remains in limbo.
Organized labor in the U.S. continues to oppose both deals. Labor says Colombia must do more to protect the rights of trade unionists in that nation. That view ignores the significant strides the Colombian government has made to reduce anti-union violence. Labor’s opposition to the Panama deal stems from that country’s opaque banking and corporate registration laws, which Panama’s new government is addressing.
Both trade pacts would make it easier for American companies to sell goods there that they make in the U.S. American-made goods face steep duties in Colombia and Panama, though exports from those countries are allowed in the U.S. duty free. These trade pacts would equalize the treatment, to the benefit of U.S. companies and workers.
While the U.S. stalls, the rest of the world takes advantage of us. Colombia has approved free trade agreements with the European Union and Canada.
Incidentally, right before Christmas, Congress did act on behalf of Colombian exports to the U.S. It voted to extend trade preferences benefiting Colombia’s textile and flower industries that would have expired at year’s end. Obama signed the bill Wednesday. That’s good news for job creation in Colombia. How about bestowing some job-creating benefits on American companies?
So, congrats to Obama for the progress on South Korea. He should encourage Congress to move on Colombia and Panama, too.
