Washington, DC – U.S. Congressman Charles W. Boustany, Jr., MD (R-Southwest Louisiana) today strongly encouraged the implementation of the pending free trade agreements (FTA) with Colombia, Panama and South Korea. The Ways and Means Committee, of which Boustany is a member, voiced its support for the agreements, delayed for months by the Obama Administration. According to the independent U.S. International Trade Commission, the three FTAs would increase American exports by $13 billion, create an estimated 250,000 new jobs in the United States and vastly expand markets for Louisiana farmers to sell their goods. 

“These trade agreements with Colombia, Panama and South Korea will promote exports of American goods and services, and create good, high-paying jobs for Louisianans,” Boustany said. “Louisiana is a maritime state and our businesses and farmers stand to gain tremendously from these agreements. With our ports, Louisiana is a leader in trade, as the state exported more than $40 billion in goods last year. Implementation of the pending agreements with Colombia, Panama and South Korea will play a large role in getting our nation’s economy back on track.”

The U.S. – Colombia Trade Promotion Agreement will open markets between Colombia and the United States and strengthen Louisiana’s trade ties with the Latin American nation. It will increase American exports to Colombia by more than $690 million per year. The agreement includes an immediate elimination of duties on almost 70 percent of U.S. farm exports, including soybeans and cotton – two major crops in Louisiana. Additionally, the agreement phases out all remaining tariffs on farm exports within 15 years, and provides duty-free tariff rate quotas (TRQ) on exports including rice. Currently, Louisiana is the third-largest U.S. rice exporter, with $136 million in total rice exports.

The U.S. – Panama Trade Agreement will greatly benefit farmers in Louisiana, as more than half of the U.S. farm exports to Panama will become duty-free immediately. U.S. exports, including Louisiana-produced rice, soybeans and cotton, will receive immediate duty-free treatment, while competitors in Asia and Europe will continue to face tariffs as high as 90 percent. The American Farm Bureau estimates the increase in farm exports to Panama because of the agreement could increase total agriculture exports to more than $195 million per year and nearly double current U.S. exports.

Upon implementation of the U.S.-South Korea Free Trade Agreement (KORUS) more than a third of U.S. exports to South Korea will be duty-free. According to the Business Roundtable, this agreement gives Louisiana exporters a $15 million cost advantage over similar products exported by competitors with no South Korean FTA. The International Trade Commission (ITC) estimates implementation of KORUS will increase U.S. exports to South Korea by at least $9.7 billion. The agreement will dramatically expand Louisiana agriculture exports to South Korea.

Boustany continues to work to rebuild the U.S. economy, and believes trade is a key element for job growth and American competitiveness.  As a member of the Ways and Means Committee, he has repeatedly emphasized the importance of implementing the three free trade agreements, which open new markets for American goods and strengthen Louisiana’s economic position on the global stage.

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