Q: What does the new trade agreement with Chile mean for Iowa?
A: I’m pleased the United States and Chile recently concluded negotiations on a bilateral free trade agreement. It’s been nearly a decade since the United States made a commitment to forge a free trade agreement with Chile. And in the meantime, Chile has entered into lucrative trade agreements with almost all of the nations in the Western Hemisphere. Iowa businesses, manufacturers and farmers lost sales with fewer exports going to Chile since 1997. With this new agreement, Iowa’s agricultural, financial services and manufacturing sectors can make up for lost ground. Within four years, more than three-quarters of U.S. farm goods will enter Chile duty-free. And all duties should phase out over the next 12 years. Given the chance to compete in the international marketplace, I’ve often said U.S. farmers can feed the world and expand their own profitability in the process. Free trade promotes economic growth. Exports are a pivotal element of U.S. economic recovery efforts and a key force that will grow the economy and create good, high-paying jobs in the 21st century. Consider in 1947, during post-war trade liberalization, the total value of world exports was $50 billion. Today, the total value of world exports is over $7 trillion That’s three times the budget of the U.S. Now the trade deal with Chile will come before Congress for approval. I’m working to ensure unwarranted restrictions aren’t slapped on U.S. farm goods that would render the duty-free access meaningless.
Q: What other trade initiatives are in store that will impact Iowans?
A: Since passage of the Trade Act of 2002, the U.S. has launched into an unprecedented era of trade-building opportunities. Since August, the Bush administration has completed long-standing trade talks with Chile and Singapore. Others are underway with Morocco, Australia, the South African Customs Union, and five nations of Central America. This is in addition to ongoing negotiations to complete a Free Trade Area of the Americas and trade talks conducted under the umbrella of the 145-member World Trade Organization. I applaud this historic degree of attention to expanding world trade opportunities. At the same time, I’m profoundly concerned about the situation with the European Union. Its unjustified policy of refusing our biotech agricultural products costs us $300 million in sales each year. And it’s starting to carry-over into developing countries, many of which fear they’ll lose sales in Europe if they accept U.S. biotech products. The EU is also dragging its feet on reforming its highly-protected farm trade. I’m also keeping close tabs on our soybean exports to China and the poultry trade with Russia. Trade agreements are worthless if our trading partners don’t follow the rules. As chairman of the Senate Finance Committee, which has legislative jurisdiction and oversight authority over matters of trade, I intend to see that U.S. trade policy works to benefit our workers, farmers, families and consumers. Our trading partners must hold up their end of the bargain to make the system work.