M E M O R A N D U M
To: Reporters and Editors
Re: Pending trade agreements
Da: Wednesday, May 4, 2011
Sen. Chuck Grassley of Iowa today made the following comment on the Administration’s agreement to move forward with technical discussions with Congress on all three pending trade agreements with the United States. The agreements are with Colombia, Korea and Panama. Grassley is former chairman and ranking member of the Committee on Finance, with jurisdiction over international trade. He is a senior member of the committee.
“The chief executive of a major U.S. corporation was just quoted as saying his company looks to Brazil, China, and India for business these days because that’s where the customers are. Manufacturers, financial services providers and farmers in Iowa and all over the country are always looking for new markets to increase their operations, whether those customers are in the United States or halfway around the world. So it’s very good news for U.S. export production and the jobs supported by exports that after frustrating delays, the President is wrapping up work to implement trade agreements between the United States and Colombia, Korea, and Panama.
“Right now, U.S.-Colombia trade is a one-way street. More than 99 percent of Colombian agricultural exports enter the U.S. market duty-free. No U.S. agricultural products have duty-free access to the Colombian market. Tariffs on some U.S. soybean exports to Colombia can be as high as 150 percent. Tariffs can be as high as 195 percent on some corn products. Under the trade agreement, these tariffs would go to zero.
“U.S. producers estimate that the Korea trade agreement, once fully implemented, could increase U.S. agricultural exports to Korea by $1.9 billion. Korea is expected to absorb 5 percent of total U.S. pork production.
“The U.S. insurance and financial services industry, including companies in Iowa, says Korea represents the largest insurance market yet included in a U.S. free trade agreement and presents enormous opportunities for domestic job growth.
“Panama currently has a 30 percent tariff on U.S. beef and tariffs of up to 40 percent on imports of U.S. corn. Both of these tariffs would go to zero under the trade agreement.
“Behind these numbers are American workers who are equipped to feed and serve even more of the world than they already do if given the chance. Any more delays from the Administration on advancing pending free trade agreements would let these workers down. I hope we’ve turned a corner. These three agreements should be implemented at the same time, as soon as possible.”