Mr. Speaker, I would like to, first of all, thank Chairman Kevin Brady for his leadership on trade, and for organizing this very important Special Order. Mr. Speaker, right now the number one concern of the American people is job creation.…
Mr. Speaker, I would like to, first of all, thank Chairman Kevin Brady for his leadership on trade, and for organizing this very important Special Order.
Mr. Speaker, right now the number one concern of the American people is job creation. Over the past 2\1/2\ years, the Obama administration's solution for job creation has been nothing more than more spending, more borrowing, more taxing, and it simply has not worked. Instead of job creation, all that the American people have gotten is more debt.
Since the day he was sworn into office, President Obama has been sitting on a no-cost jobs solution in the form of our pending free trade agreements with Colombia, Panama, and South Korea. Together, these three agreements have the potential to create hundreds of thousands of new jobs by opening up the markets of our trading partners to U.S. exports, which would drive job creation and economic growth here at home.
Several of my colleagues have already spoken of the importance of these agreements, so I will discuss the importance of these agreements to my home State of Texas.
While the Texas economy is very diverse, an important pillar is agriculture. In the 23rd District of Texas that I have the privilege of representing, the beef industry is a very important part of the economy, as is cotton.
All of these three pending trade agreements represent huge opportunities for Texas agricultural producers. For example, according to the United States Department of Agriculture, the Colombia agreement will eliminate the current 80 percent duty imposed on prime and choice cuts of beef, with all beef tariffs eliminated after 10 years. Cotton, another important agricultural export from Texas, will see Colombian tariffs on cotton imports completely eliminated once the agreement is passed.
In the case of Panama, U.S. beef exports that currently face tariffs of 10 to 30 percent will be immediately lifted for prime and choice cuts of beef, with the rest eliminated within 15 years.
The Korean agreement has the opportunity to be a huge windfall for agricultural exports. The United States Department of Agriculture estimates that the Korean agreement will increase annual exports to Korea by a minimum of $1.9 billion upon full implementation. For U.S. beef exports, Korean tariffs will be completely phased out in 15 years. Cotton will see its current duty-free status become permanent, guaranteeing U.S. cotton producers will compete in Korea on a level playing field with other cotton-producing nations.
There is no doubt that all three pending free trade agreements are good for agricultural producers in Texas and in the United States. These agreements are also good for the United States' service industries.
I am proud to say that I serve on the House Financial Services Committee. Currently, U.S. financial services providers face challenges to doing business in all three nations with which we have pending free trade agreements. The services industry in each nation is growing, and with passage of this agreement, American financial services firms will have better access and better ability to compete in a vibrant and growing market.
These agreements are also important to the United States' standing in the world. In particular, the Colombia agreement should be passed so that Colombia can serve as a counterweight to Hugo Chavez's Venezuela.
Despite all the benefits, at the end of the day, these agreements are about creating jobs here in the United States. Every day that we fail to pass these agreements, we fail to create jobs and economic activity that would exist had we already passed them.
At a time when we're seeing unemployment at its worst since the Great Depression, I am happy that President Obama finally decided to submit them for consideration, and I look forward to all three agreements receiving swift consideration in Congress and quickly becoming law shortly thereafter.