(October 5, 2011) The White House announced this week that it is transmitting to Congress for approval the implementing legislation for the free trade agreements with Korea, Colombia and Panama.
The California Chamber of Commerce and a broad-based coalition are urging congressional approval of the agreements.
In a statement, President Barack Obama said, “The series of trade agreements I am submitting to Congress will make it easier for American companies to sell their products in South Korea, Colombia and Panama and provide a major boost to our exports. These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America. We've worked hard to strengthen these agreements to get the best possible deal for American workers and businesses, and I call on Congress to pass them without delay, along with the bipartisan agreement on Trade Adjustment Assistance that will help workers whose jobs have been affected by global competition.”
Korea Agreement
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 gross domestic product.
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.
More Information
More information on the FTA can be found on the trading partner portals on the CalChamber website,
Staff Contact: Susanne Stirling