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Congress OKs 3 free trade deals
By STEVE BINDER
Illinois Correspondent

WASHINGTON, D.C. — Stalled for nearly five years, free trade agreements (FTAs) with three growing countries steamrolled through Congress last week and prompted President Barack Obama to call the votes “major wins.”

A clear winner is the U.S. agriculture industry, already boasting a $25 billion trade surplus and looking to add another $2 billion-$3 billion annually when all three pacts take effect.
Most major agriculture groups supported the FTAs, which bring to 20 the United States has worldwide. Some union groups, including the National Farmers Union, opposed the deals largely based on labor-safety issues and the belief some types of jobs will be outsourced overseas.

South Korea already is the seventh largest purchaser of U.S. goods, with tariffs on some products running as high as 50 percent when compared to similar imports to the U.S. Within five years, under terms of the agreements, 95 percent of all tariffs on U.S. exports of food, autos and parts, construction equipment and other goods will be eliminated. “Other parts of the economy will benefit (with the new FTAs), but none more so than agriculture,” said USDA Secretary Tom Vilsack. Farm exports are expected to reach $137 billion over the next year.

The American Farm Bureau Federation estimated the deals would add some 22,500 jobs here in the U.S.; the White House put the figure at about 70,000. “It’s a great opportunity to stimulate the economy without spending any U.S. tax dollars,” said Ron Moore, president of the Illinois Soybean Assoc. “Every $1 billion of exports adds about 9,000 jobs to the United States.”
The U.S. International Trade Commission estimates America’s exports to South Korea will increase by some $10.9 billion in the first year of the FTA; exports to Colombia should increase by some $1.1 billion.

David Meiss, a farmer from Gridley, Ill., and a member of the state’s Farm Bureau team that traveled to Colombia and Panama in March, sees huge potential looking at the Colombia market alone.
“Colombia is a perfect example of a country with exceptional trade potential,” Meiss said. “Colombia is building homes and offices, developing infrastructure and increasing its need of grains and meat for its growing population. As a top grain-producing state and home to Caterpillar, John Deere, Navistar and many other companies, Illinois can help supply Colombia with the trucks, earth-moving equipment, livestock feed and foods it needs to continue to grow.”

Bill Donald, a Montana rancher and president of the National Cattlemen’s Beef Assoc., said exports add about $200 per head for cattle. Beef exports to the three countries totaled approximately $850 million last year. They are expected to hit $1.8 billion by the time the trade agreements are fully implemented.
Donald is optimistic the new agreements could lead to increased exports to other countries such as Japan and China. “If we have some success with Korea, hopefully other countries will see that,” he said.

Iowa pork producer Sam Carney, Trade Policy Committee chair for the National Pork Producers Council, called passage of the new agreements “great news.

“You produce more pigs, you need more people working at plants, more processors, more transportation and that requires more jobs,” Carney said. “It’s nothing but a plus-plus for everyone.”
The House vote totals Oct. 12 were 262-167 in favor of Colombia, 300-129 for Panama and 278-151 for South Korea. The Senate vote totals were 66-33 for Colombia, 77-22 for Panama, and 83-15 for South Korea.
10/19/2011