Establishing An Earned Import Allowance Program
Madam Speaker, I rise today in support, with my colleagues, of H.R. 6560, a bill that as has been said will make certain changes to the Dominican Republic-Central America Free Trade Agreement, which the House passed exactly 3 years ago…
Madam Speaker, I rise today in support, with my colleagues, of H.R. 6560, a bill that as has been said will make certain changes to the Dominican Republic-Central America Free Trade Agreement, which the House passed exactly 3 years ago yesterday. It will also make changes to our African trade preference program and will extend the generalized system of preference for one more year.
The changes to the DR-CAFTA agreement will encourage the use of American-made fabrics in the production of pants in the DR. This helps to support American textile jobs, and it gives the Dominican Republic more flexibility to strengthen its competitiveness, too. So it is a win-win for jobs here in America and for jobs in Central America as well. It's a small change, but it can help American exporters and Dominican producers, and it's evidence of how the agreement has created economic benefits for all participants.
In fact, if you drill down a little deeper into this agreement, in the past 3 years, even though it's really not fully implemented, Guatemala, for example, has not only shown remarkable economic progress and growth since the CAFTA agreement was put into place, but a lot of their jobs that they're creating are in the rural areas, in the poorest of the poor. So they're helping not just the number of a few big producers; they're helping the average person in Guatemala by raising the standard of living and by their having some hope for the future just as it is creating jobs here in America.
What we have learned over the years is that it's not enough to simply buy American. You have to sell American. We have to aggressively sell our American products and services all throughout this world.
For the U.S., as it has been pointed out, our $1.9 billion trade deficit with the six partners in Central America has now turned into a $3.6 billion trade surplus thanks to this agreement. That means we're selling more than we're buying and that we're supporting good paying American jobs in manufacturing, in services, in transportation, in logistics, and in agriculture.
We recently learned that, if you take all of our current free trade and fair trade agreements, we see the same trend, that deficits are turning into surpluses across the board. We now have a surplus of nearly $3 billion, and our free trade agreement partners, who are only a small part of the world economy, now account for half of all that America sells overseas. So we are creating some of the best customers for American products and for American workers here in our agreements.
In fact, if you look at the American economy today, nearly 40 percent of our economic growth comes from selling our products all around the world, and we're selling them to the countries we have these agreements with. They are great customers, and we need more of them.
What I've realized is that, as to the giant sucking sound that was predicted for trade agreements, it turns out that that's the hot air deflated from the critics who've been proven wrong about each one of them, especially about CAFTA. This is yet another reason why this Congress needs to pass the U.S.-Colombian Trade Promotion Agreement.
Like Central America before it, Colombia already enjoys access to America. They can sell their products almost duty free into the United States, but when we try to sell our products back into Colombia, their tariff is almost 14 percent, much higher than Central America's was before. They don't create a level playing field for American workers. We want to have two-way trade and equal competition.
An agreement would lock in Colombia's trade preferences while creating a better investment climate for the country, which would help build its legitimate economy, which is dynamic throughout this region. A stable Colombia is good for the United States and for the hemisphere.
If you've been following the news, you've seen remarkable progress by Colombia and by President Uribe on
human rights, on labor rights and especially, just lately, on its remarkable rescue of the American hostages after their being 5 years within the FARC. They are taming the terrorist organizations with our help, and they deserve our continued support in that effort.
Madam Speaker, the Central American agreement has helped to bolster ties with our partners in the region. It has helped to create U.S. jobs and to encourage economic growth in neighboring countries. Colombia will do the same. I reiterate my call for the leadership of this House to schedule an up-or-down vote on Colombia this year. Given the nature of our trade laws, it will be too late if this gets put on hold until next year, and we will have missed a critical opportunity to strengthen our relationship with an important partner in the region and to create fair trade for Americans.
Ladies and gentlemen, the whole world is watching America. Let's not turn our back on Colombia. Let's not show the world we're economic isolationists--afraid to compete or afraid to hold out our hand to partners in our backyard. Let's not as a Congress be beholden to a few special interests. Democrats and Republicans, Defense Secretaries and Secretaries of State agree that this is one of the most important foreign policy decisions that we can make. The whole world is watching. Let us schedule a vote for Colombia and pass it this year.