(October 13, 2011) Yesterday the U.S. Congress approved the free trade agreements with Korea, Colombia and Panama, which will ensure that the United States will continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.

The California Chamber of Commerce and a broad-based coalition have been urging congressional consideration of these agreements for almost five years.

“Passage of the free trade agreements is good news for the California economy and jobs,” said Susanne Stirling, CalChamber vice president of international relations. “One-fourth of the state’s economy is tied to international-related commerce. By eliminating tariffs and other barriers to trade in goods and services, the free trade agreements will promote economic growth and offer the opportunity to expand the role of California exports.”

President Barack Obama sent the legislation to Congress last week, saying the free trade agreements (FTA) “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 280,000 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.

Key Vote on Colombia FTA

The U.S.-Colombia FTA passed the House 262-167 and passed the Senate 66-33.

The California Delegation vote was:

Ayes: Becerra, Berman, Bilbray, Bono Mack, Calvert, Campbell, Cardoza, Costa, Davis, Denham, Dreier, Eshoo, Farr, Gallegly, Herger, Hunter, Issa, Lewis, Lungren, Matsui, McCarthy, McClintock, McKeon, Miller, Nunes, Pelosi, Rohrabacher, Royce, Schiff, Thompson, Waxman, Feinstein.

Noes: Baca, Bass, Capps, Chu, Filner, Garamendi, Honda, Lee, Lofgren, McNerney, Miller, Napolitano, Richardson, Roybal-Allard, Sanchez (Linda), Sanchez (Loretta), Sherman, Speier, Stark, Waters, Woolsey, Boxe. 

More Information

More information on the FTA can be found on the trading partner portals on the CalChamber website,

• Korea, www.calchamber.com/Korea
• Colombia, www.calchamber.com/Colombia 
• Panama, www.calchamber.com/Panama