Extending The Generalized System Of Preferences
Mr. Speaker, I rise today in strong support of the Free Trade Agreements with Panama, Korea and Columbia. These long overdue trade agreements will increase exports, lower the trade deficit and stimulate much-needed economic growth in the…
Mr. Speaker, I rise today in strong support of the Free Trade Agreements with Panama, Korea and Columbia. These long overdue trade agreements will increase exports, lower the trade deficit and stimulate much-needed economic growth in the United States.
Free market competition is the proven way to create wealth and jobs in the economy. When the Federal Government attempts to create winners and losers, the American people get the short end of the stick.
South Florida is the gateway to Latin America, and the trade agreements with Colombia and Panama will support and create jobs in Florida and throughout the nation by leveling the playing field for United States goods and services.
Today, nearly all imports from Colombia and Panama enter the United States market duty free, but these countries continue to impose tariffs on our farm and manufactured goods exports that often soar into the double digits. Colombia currently collects $100 in tariffs on United States exports for every $1 the United States collects in tariffs on Colombian goods, and a similar lopsidedness holds back American export sales to Panama.
The free trade agreements will eliminate these tariffs and other barriers United States exporters face, and will create new opportunities for the sale of American products. In addition, they will secure the intellectual property of United States inventors, researchers, and creators; open services markets; and protect American investors and the jobs they support in the United States.
The independent United States International Trade Commission estimates that implementation of the three pending trade agreements would increase American exports by at least $13 billion and add at least $10 billion to our nation's Gross Domestic Product per year, which would mean 250,000 new jobs in the United States. Passing all three pending trade agreements will directly benefit small and medium- sized businesses, as well as the hundreds of thousands of American jobs they create.
Exports are critical to United States economic growth, and will have a significant, positive impact to my Congressional District that is home to two major ports--Port Everglades and the Port of Palm Beach. In 1986, exports equaled 7.2 percent of GDP. In 2010, exports equaled nearly 13 percent of GDP.
In 2010 alone, the State of Florida exported more than $4.2 billion to Colombia, Panama and South Korea combined. This represents a significant increase over the last decade. With the passage of the Free Trade Agreements, all indications point to significantly increased exports for the State of Florida.
Finally, the implementation of each of these Free Trade Agreements is important for our security and geostrategic goals. Each of the agreements will strengthen the United States' relationship with South Korea, Colombia and Panama, some of our country's strongest partners in advancing both regional and global security.
However, in May of 2011, President Barack Obama's Administration announced that it would not submit these three long-pending, job- creating trade agreements to the United States Congress unless ``trade adjustment assistance'' benefits (TAA) were renewed and expanded.
Quite simply, TAA is a federal program that sends cash and provides other benefits to workers whose jobs are purportedly affected negatively by trade. As a letter that was sent to Republican Leadership earlier this year states, ``TAA is undoubtedly--and deliberately designed as--a federal wealth redistribution program that has no business existing in a free society.''
Furthermore, the central components of these TAA programs--job- training, unemployment subsidies, and health-care subsidies--are available under dozens of other federal programs. In all, there are currently 47 government-sponsored and taxpayer-funded job training programs that received over $18 billion in Fiscal Year 2009. There are eight taxpayer-funded programs that provide unemployment insurance, and six taxpayer-funded programs that provide health insurance--all duplicative to programs found within TAA.
TAA accepts the premise that free trade is bad and needs to be offset by another federal program paid for by the American taxpayers. By strictly assisting workers who claim job losses due to trade, the program provides an incentive to exaggerate the negative impact on jobs due to free trade. In my assessment, TAA programs amount to subsidized excuses. Americans can openly compete with anyone in the free market-- we do not need government creating victims.
I will not support H.R. 2832 because TAA programs allow the Federal Government to pick winners and losers. As The Heritage Foundation recently analogized, ``the worker who loses his job to a foreign competitor should receive the same treatment as the Blockbuster employee who lost his job to Netflix.''
Free trader benefits all parties involved--from consumers to business owners and farmers, to the port employees in my Congressional District. Free market competition and enterprise through free trade agreements should not be held back by what amounts to another duplicated, wasteful Federal Government program.