Columbia trade deal good for producers, consumers

By Dan Mader
Friday, April 11, 2008 3:31 PM CDT

Free-trade agreements aren’t politically popular these days, with many people inclined to blame current economic woes on trade agreements. But the facts usually show the opposite n trade promotes broad economic growth, creates jobs, lowers consumer costs and expands markets for U.S. products.

Now is the wrong time to get cold feet on trade agreements. At a time when the developing world is experiencing rapid economic growth — as much as 7 to 10 percent annually in China, India and Colombia n American farmers, workers and manufacturers need assurances that our products will be more competitive, not less, in these rapidly expanding markets. At this time when the U.S. dollar is weak and developing countries are growing, this is the perfect time to help American workers sell U.S.-made products overseas.

Three bilateral trade agreements await congressional action, but the outlook is very uncertain. A strong case can be made for congressional support for the first to be considered, the Colombia-U.S. Trade Promotion Agreement that was signed by President Bush a year ago. Two-way trade between our two countries totaled $18 billion last year. Colombia is already the second-largest market for U.S. farm products, with significant growth potential.

There are several compelling reasons to support the Colombian trade agreement. First, this bilateral free-trade agreement will give our products the same duty-free treatment that Colombia already enjoys in our market. Under the existing Andean Trade Preference Act, more than 90 percent of Colombia imports enter the U.S. duty free, while our products face steep tariffs moving the other direction. Clearly, a NO vote will hurt American workers and producers.

I traveled to Columbia in 2007 and was surprised by the vibrant economic growth, prosperity and security situation. Colombian brewers have a large growing market for barley n more than 200 thousand metric tons annually — but are unable to produce it domestically. They are very interested in buying their raw materials from the U.S., but high tariffs have made us uncompetitive in the past. For the Idaho grain industry, this FTA is a very good deal n it secures immediate duty-free access for our barley, malt and wheat, compared to current Colombian tariffs as high as 80 percent. Other Idaho farm products will benefit as well, including beef, dairy and potatoes.

The only thing accomplished by rejecting this free-trade agreement will be to punish American workers with continued one-way tariffs against our products. The Colombian Trade Promotion Agreement is a win-win for both the U.S. and Colombia and deserves a positive vote from Congress.

By Dan Mader, Genesee, Idaho, is a grain producer and member of Idaho Barley Commission

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