Reinsch Remains Cautiously Optimistic About Congressional Action on Colombia FTA

Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch spoke today to the Citigroup Latin American Professionals Forum in Miami, Fla., during which he discussed the political dynamics driving U.S. trade policy toward Latin America and the future of hemispheric relations. In his remarks, Reinsch offered his perspective on bilateral agreements pending congressional approval, including the free trade agreements the United States negotiated with Colombia and Panama.

“Creating a stable, open business environment in Latin America is the bottom line trade policy goal of my organization’s members, which are U.S. based companies that operate globally,” said NFTC President Bill Reinsch. “This goal is reflected in the mosaic of Free Trade Agreements and preference programs that we have sought in the region over the last fifteen years. Unfortunately, despite some successes, we are as far from achieving that goal as we have ever been.”

Reinsch chronicled the history of U.S.-Latin America trade relations from policies set in the 1980s and the North American Free Trade Agreement (NAFTA) of the 1990s to the more recent Dominican Republic-Central America- U.S. Free Trade Agreement (DR-CAFTA) and bilateral pacts with Chile, Peru, Panama and Colombia. “Gradually the U.S. has sought to move from a client-patron trading relationship to granting unilateral tariff preferences to our more recent effort to create bilateral free trade agreements, which recognize that Latin American nations are competing in the global economy on a more equal footing,” said Reinsch.

He discussed how trade liberalization in Latin America has helped to boost U.S. exports and expand mutually beneficial bilateral trade with nations in the region, but said, “…some in Congress and a growing segment of the public are taking a different view.  They view these agreements as exporting American jobs to the south.”

“The political reality we all have to face is that trade accelerates change and creates winners and losers.  However, the gains tend to be long term and diffuse and the losses short term and specific. And in politics, whether you are in Washington, Caracas, or Buenos Aires, long term and diffuse gains are generally overshadowed by short term and specific pain,” said Reinsch. “And let me be clear:  the pain is not imaginary.  Real jobs are being lost, and a growing segment of our population is uncertain about its future.  What is missing in the public equation is cause and effect.  Trade grows; jobs are lost, but that does not mean the former caused the latter, although none of our countries are short of politicians making that link.”

In addition, Reinsch made note of the 2008 U.S. presidential election and its influence on candidates’ rhetoric about trade, especially with respect to NAFTA and the U.S.-Colombia trade pact. “At this point I remain an optimist – perhaps a naïve one – because I think the agreement will ultimately be approved but I cannot, today, describe a clear path for getting there,” Reinsch said of the potential for congressional approval of the Colombia trade agreement.

“Until Americans who receive the economic benefits that come with open trade realize what is at stake, and until those bearing the cost see light at the end of the tunnel, there will not be a pro-trade constituency as loud as the anti-trade forces, and our efforts to promote global economic integration will continue to founder,” Reinsch concluded.

To read the full remarks, please click here.

Washington, DC – In reaction to the Speaker’s decision to remove the timetable from the consideration of the U.S.-Colombia Trade Promotion Agreement, National Foreign Trade Council (NFTC) President Bill Reinsch released the following statement:
 
“The U.S.-Colombia FTA should be considered by Congress on its merits. It is a carefully crafted agreement that will open markets and expand opportunities for American workers. It will also bring increased stability and economic growth to the region at a critical time in its history. NFTC members employ tens of thousands of American workers whose livelihoods depend on the Administration and Congress working through their differences to open new markets for American goods and services and to develop an American workforce well equipped to succeed in the global economy.
 
“It’s time for both sides to stop playing ‘gotcha’ and return to the bipartisanship that has maintained the integrity of the fast track process that has advanced our economy for thirty years. The stakes are too high to walk away from this challenge.”

 

Agreement Important to U.S. National Security Interests, Will Fortify Commercial Ties with Key Ally in Latin America

Washington, DC ­ On the heels of an announcement today from the Administration that the president will send implementing legislation for the U.S.-Colombia Trade Promotion Agreement to Capitol Hill tomorrow, the National Foreign Trade Council (NFTC) released the following statement urging Members of Congress to approve the implementing bill. The Council encouraged committees of jurisdiction to begin scheduling hearings on the FTA, and asked all Members of Congress to evaluate the agreement on its merits and support it on the House and Senate floor. In addition to pressing for action on the Colombia agreement, the NFTC also called for expanding and enhancing the Trade Adjustment Assistance (TAA) program.

“The U.S.-Colombia FTA is a well-crafted agreement that reflects the labor and environmental provisions included in the bipartisan framework on trade developed by the Administration and Congress last spring. Given the commercial and national security implications of this agreement between the United States and an important ally in Latin America, we urge Members of Congress to approve the FTA in the coming weeks,” said NFTC President Bill Reinsch. “Equally as important is ensuring that American workers impacted by the trade and technological advancements receive the training, retraining and benefits they need to succeed in the 21st century global economy, through an expanded and enhanced Trade Adjustment Assistance program. We hope Congress will enact such an expanded program as well.”

“The trade agreement with Colombia will open markets and expand opportunities for American workers employed by U.S. companies with operations, facilities or interests in trade with Colombia. It will also bring increased stability and economic growth to the region at a critical time in its history,” Reinsch continued. “Approving the U.S.-Colombia agreement will send an important signal to other nations in the region that the United States is a reliable ally and committed to helping Latin America fully realize the benefits of an open, rules-based trading system.”

“With the implementing legislation soon to reach the halls of Congress, we ask committees of jurisdiction to be responsible stewards of the legislative process and begin scheduling hearings in the coming days and weeks. As Members begin reviewing the legislation, we encourage them to evaluate it on its merits and cast votes that reflect that thoughtful deliberation,” said Reinsch.

“From a commercial standpoint, Colombia is an important market for U.S. goods and services, but currently our farmers and our manufacturers pay costly tariffs on products exported to Colombia,” said NFTC Senior Vice President Catherine Bennett. “Though many products from Colombia already enjoy duty-free access to the U.S. market under existing preferences programs, the United States does not enjoy such benefits. Congress, however, has an opportunity to change the factors in this lopsided equation by approving the trade agreement.”

Under the terms of the agreement, there will be continued and increased market access for U.S. goods, including medical and construction equipment, chemicals, agricultural exports, plastics and other products. In 2007, U.S. exports to Colombia accounted for $8.6 billion, and are expected to increase by $1.1 billion following the agreement’s entry into force.

Joins Other Leading Organizations in Pressing Congress to Fulfill NAFTA Obligations

Washington, DC -­ The National Foreign Trade Council (NFTC) today joined 68 other leading business and agricultural organizations in sending a letter to all Members of Congress, urging them to permit the full implementation of the U.S. Department of Transportation’s (DOT) Cross Border Trucking Pilot Program, and oppose attempts to halt or impede the program. Full implementation of the pilot program is essential to fulfill U.S. trade obligations under the North American Free Trade Agreement (NAFTA).

“If the United States is to be a responsible stakeholder in the global community and honor our obligations under NAFTA, it is critical that Congress allow the U.S.-Mexico trucking program to be fully implemented and refrain from attempts to disrupt the program,” said NFTC President Bill Reinsch. “Mexico is the United States’ second largest trading partner, and the stability of U.S.-Mexico trade relations is vital to U.S. economic growth. Attempting to impede the trucking program’s implementation would put our economic relationship at risk.”

The Administration announced the introduction of the pilot program late last February, and under the one-year program, 100 U.S. and 100 Mexican trucking companies will be chosen to have access to an open border between the two countries. Currently open access is restricted to the commercial zones adjacent to the border. The pilot program allows access to all of both countries, although it only covers international cargo, and hazardous material is prohibited.

“It would be, at the very least, counterproductive to send the message to our trading partners in Mexico that we are only willing to go halfway on the program’s implementation when we’ve already given our word and made a full commitment under NAFTA,” Reinsch continued.

In 2006, Mexico was our second largest trading partner and has been among the fastest growing major export market for goods since 1993, with U.S. exports up 132 percent through 2003.

Click here for a copy of the letter.

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Advancing Global Commerce for Over 90 Years
The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.