(July 15, 2011) The U.S. Senate Finance Committee and U.S. House Ways and Means Committee last week moved the U.S.-Korea Free Trade Agreement (FTA) one step closer to Congressional approval.
The committees passed the FTA by mock markup , which serves as their recommendations on the administration’s draft implementing legislation. Committee mock markups are the standard way Congress weighs in on the administration’s FTAs negotiated under fast-track authority, which prohibits amendments to the final implementing bills.
"The vote brings us one step closer to creating the hundreds of thousands of new U.S. jobs and the growth that our economy desperately needs. It means small business owners will have new opportunities to expand their businesses and hire new workers and many folks searching for work can get the training they need to get a new job,” said Senate Finance Committee Chairman Max Baucus (D-Montana) in a statement.
During the July 7 session, the committees also held mock markups on the pending trade agreements with Colombia and Panama.
Korea FTA
The U.S. International Trade Commission has estimated that the reduction of tariff and non-tariff barriers to U.S. manufactured and agricultural goods under the U.S.-Korea trade agreement would increase U.S. exports to Korea by $10 billion–$11 billion. The agreement has the potential to create as many as 280,00 jobs, according to an updated assessment of the agreement prepared by the commission economic staff at the request of the U.S. Senate Finance Committee’s Subcommittee on Trade. Korea is California's fifth largest exporting partner. In 2010, California exported $8.1 billion to Korea.
Colombia and Panama
Colombia and Panama are dynamic economies with pro-U.S. governments, and U.S. trade with these countries has nearly doubled over the last four years.
More than 19,500 U.S. companies export their products to Colombia and Panama, and more than 80 percent of these are small and medium-sized companies. U.S. farmers and ranchers sell more than a billion dollars worth of agricultural products to these markets. U.S. manufacturers are enjoying double-digit sales growth, which will only grow when the tariffs are removed.
A U.S.-Colombia FTA will increase momentum toward lowering trade barriers and set a positive example for other small economies in the Western Hemisphere. In 2009, California exported approximately $320 million to Colombia, making it the state’s 35th largest export market.
Panama has the highest gross domestic product (GDP) per capita in Central America. Its economy is based largely on the services sector, which accounts for nearly 80 percent of the GDP.
Services include the Panama Canal, banking, insurance, container ports, and medical and health. Panama has been hailed for the strong growth in its economy and its commitment to fighting corruption, combating narco-trafficking, and promoting democracy. In 2009, the United States had a trade surplus with Panama, with exports totaling $4.3 billion and imports slightly above $300 million. California exports to Panama totaled $228 million, making it California’s 43rd largest export market.