(October 24, 2011) On Friday United States President Barack Obama signed legislation implementing the Korea, Panama and Colombia Free Trade Agreements (FTAs).
Following the signing ceremony President Obama called President Juan Manuel Santos of Colombia and President Ricardo Martinelli of Panama to congratulate one another on the successful signing of the agreements. During his calls, President Obama noted that the agreements indicate the deep and enduring ties between the United States and both Colombia and Panama.
United States Trade Representative (USTR) Ron Kirk has also released a statement announcing that the USTR already started the work necessary to bring these agreements into force as soon as possible.
“We’re eager for American businesses and workers to begin reaping the benefits of these hard-won agreements,” Kirk said. We know that more exports of Made-in-America goods and services flowing to consumers in Korea, Colombia, and Panama can support tens of thousands more jobs here at home. Supporting more American jobs with responsible trade policy has always been our goal.”
The California Chamber of Commerce and a broad-based coalition have been urging congressional consideration of these agreements for almost five years.
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 2010, California exported approximately more than $409 million to Colombia, making it the state’s 34th 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 2010, the United States had a trade surplus with Panama, with exports totaling $6.1 billion and imports slightly under $379 million. California exports to Panama totaled $252 million, making it California’s 42nd largest export market.
More Information
More information on the FTA can be found on the trading partner portals on the CalChamber website,