Why passing the U.S.-Colombia Trade Promotion Agreement is the Right Thing to Do

Posted by: Ways and Means Republican Office (March 26, 2008, 10:50 AM)

Trade with Colombia, because of the preference program, is one-sided to Colombia’s benefit.  More than 99 percent of total Colombian exports to the United States are already duty-free (measured by tariff line) because of the preferences.  By contrast only 2.7 percent of U.S. exports to Colombia are currently duty-free.  More than 89 percent of Colombian agriculture exports to the United States are already duty-free (measured by tariff line) because of the preferences.  No U.S. agriculture exports to Colombia receive duty-free treatment today.  The average U.S. tariff paid by imports from Colombia in 2006 was only 0.1 percent because of the preferential access to the U.S. market.  In contrast, the average tariff paid by U.S. exports to Colombia was 11.2 percent.
The FTA will reduce the average tariff faced by U.S. exporters by more than 68 percent, from an 11.2 percent average duty to 3.6 percent immediately upon implementation of the Agreement.
Canada and the EU are negotiating FTAs with Colombia right now and expect to finish shortly.  Canada and the EU export the same products to Colombia as the United States, such as wheat and barley.  If Congress passes the U.S.-Colombia FTA now, we could give US companies a competitive head start against Canada and the EU.   Any delay in passing the FTA will put U.S. companies at a disadvantage against their competitors in Canada and the EU.
Those who oppose the trade agreement have raised concerns about violence against labor union members in Colombia.  While there is more progress to be made, the Colombian Government has taken many steps to reduce the level of violence in Colombia and has specifically targeted violence against labor union members.  Since 2000, the number of homicides declined by 39 percent, kidnappings declined by 83 percent, and terror attacks declined by 61 percent.  In 2006 the murder rate was the lowest in 15 years and is now lower than the murder rates in Washington, D.C. or Baltimore, MD.
The Colombian Government has established a dedicated program of investigators and prosecutors to deal exclusively with cases of violence against labor leaders.  In January 2008 the Colombian Government increased the staff of the Prosecutor General by 2,166 positions.  This includes a 12 percent increase in the number of prosecutors and a 14 percent increase in the number of investigators.  Funding for the Prosecutor General’s office has increased by 75 percent since 2002, and Colombia is spending $38.4 million to provide body guards and other protection for labor union members.  The Colombia amended its Constitution to make significant reforms to its judicial system. These reforms are speeding up the investigation and trial process considerably.

These steps have lead to real and significant improvements.  The number of homicides involving labor union members has declined from 205 in 2001 to 20 in 2007.  The murder rate among labor unionists is now lower than the national rate. 

Colombia continues to take steps to build upon this progress.  The Colombian Government has agreed to the creation of a permanent ILO representative in Colombia. Colombia has implemented all 8 of the core ILO Conventions.  The Colombian Government has extended its agreement with the UN to have an office of the High Commissioner for Human Rights in Colombia to observe and advise on human rights issues.  The UN High Commissioner cited a greater commitment on the part of the Colombian authorities in seeking to achieve the objectives of the UN’s recommendations.

Colombians support the efforts of the Colombian Government and support the trade agreement.  This includes Colombian labor union leaders, representing 79,000 Colombian workers in the productive sector, recognized the progress and continued effort that the Colombian Government has made in reducing labor violence and wholeheartedly support the FTA.

In the face of these facts Congress should act to pass the U.S.-Colombia Trade Promotion Agreement.

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