Trade Creates Great Opportunity for America and Nebraska

Opening new markets for American goods and services is the best way to create jobs and spur economic growth. Unfortunately, three free trade agreements (FTAs) still await final approval. Agreements with Colombia, Panama, and South Korea enjoy broad bipartisan support in both the U.S. House and Senate and the need for action on them is urgent. As a member of the Committee on Ways and Means, and specifically its Subcommittee on Trade, working with my colleagues to ensure consideration of all three trade agreements by July 1 is a top priority.

President Obama has estimated increasing U.S. exports by just 1 percent would create more than 250,000 jobs. According to the International Trade Commission, passage of the Colombia, Panama, and South Korea agreements would increase our exports by more than 1 percent. Inaction on these FTAs is preventing the creation of at least a quarter-million American jobs. In these difficult economic times, Congress and the Administration owe it to American workers and businesses to take all available steps to increase exports and the jobs they support.

In addition to economic benefit, approval of these agreements would advance our national security interests. Colombia, Panama, and South Korea are critical U.S. allies in volatile regions of the world. By ratifying these agreements, it would send an important signal we value our friends around the world, and in turn, strengthen our credibility and global leadership.

While the national impact of these agreements is tremendously valuable, free trade is distinctively important to Nebraska, particularly for our agricultural industry. The next decade offers great opportunity for the farmers and ranchers in our state because expanding access to thriving international markets would produce a direct benefit.

Recently, the Ways and Means Subcommittee on Trade concluded a series of hearings about the pending FTAs. It was clear in each hearing the ratification of these agreements would increase exports of high-quality agriculture products to the respective countries. In fact, the American Farm Bureau estimates the combined U.S. farm exports to Colombia, Panama, and South Korea could annually increase by more than $2.6 billion.

Additionally, failure to move them would severely disadvantage farmers and ranchers who currently sell products in these markets. Passing the pending trade agreements would eliminate or substantially lower the tariffs on agriculture exports. For example, the current tariff on beef exports to South Korea is 40 percent. Under the new agreement, it would be completely eliminated.

While progress continues toward the final ratification of these agreements, we must keep pressing forward. The reality is each day we delay signing agreements with Colombia, Panama, and South Korea Nebraska's farmers and ranchers lose opportunities to international competitors. Other major economies, including the European Union and Canada, which are home to some of the biggest competitors to U.S. exporters, have already concluded agreements with these three countries. The first step for our agricultural producers to get back on a competitive playing is to quickly pass all three pending trade agreements.

For more information about this issue, the latest developments from Congress, or to sign up for my e-mail newsletter, please visit my website at www.adriansmith.house.gov.