I thank my good friend from California (Mr. Dreier) for leading us in this very important discussion on trade. Really, the surprise, I think, for myself--now, I represent a northern California district which is heavy in agriculture. It's…
I thank my good friend from California (Mr. Dreier) for leading us in this very important discussion on trade.
Really, the surprise, I think, for myself--now, I represent a northern California district which is heavy in agriculture. It's one of the richest agricultural areas in the world. Also, it stretches from just north of Sacramento almost 300 miles to the Oregon border. The northern quarter of it has and along the sides it has some nine national forests, Mt. Shasta and Mt. Lassen. As I mentioned, it is one of the richest agricultural areas in the world. Within the United States, we grow a large percentage of specialty crops grown in the world--walnuts, almonds, prunes. We're the third largest rice-producing district in the Nation.
The fact is that our consumers in northern California and in all of California--and one out of every eight citizens in the United States lives in California--cannot consume all that we grow. We need to be able to export, so over half of all that we grow is exported to other nations. It helps with our imbalance of trade. As my friends and Mr. Brady know, it's not just agriculture. It's manufacturing as well.
Yes, please do.
That's exactly true.
I'd like to give examples of agriculture and then mention that these same challenges we have in agriculture we see in manufacturing as well. As a matter of fact, we as a nation are the No. 1 agricultural country in the world and exporting country, but it's not just agriculture. We're the No. 1 manufacturing and the No. 1 trading nation in the world.
Our big challenge, as it is with our agricultural goods, is that we basically have very low tariffs coming into the United States. Yet, when we look at our markets for agriculture and for other commodities, whatever they might be--getting into the markets of China, getting into the markets of Japan, Asia, South Korea, the EU--Europe--and in the South American countries--we see that their duties, import duties, of getting our rice or our prunes or our peaches or our walnuts into their countries are very high. So, therefore, it's very difficult for us, unless we can negotiate agreements--trade agreements--with these countries, to lower their tariffs in order to get our goods into their countries.
Yes.
Well, that's exactly right. Our tariffs are in the mid-20 percent. It is as much as that that we're paying into these countries.
So it almost defies reason to think that we are standing still in this Congress and that we actually have the three agreements that you mentioned which have already been negotiated. In Panama, they're about ready to rebuild the Panama Canal. The gentleman and myself have been down to these countries. We've seen this. These countries want these agreements. They've already negotiated bringing their tariffs down. They were negotiated in the last administration with these countries. All they need is a vote and an okay by the Congress.
Well, that's exactly the case.
Like everything else in life, no one stands still. You're either moving forward merely because your competitors are moving forward or you're moving behind.
In this case, not only are we not moving forward with just these three agreements, which could pass, but as Mr. Dreier from California mentioned, we see the Canadians have also negotiated an agreement with the Colombians and with the Panamanians where they will now get in ahead of us and will be able to make agreements. Their businesses will begin developing their relationships, and our businesses and our agriculture will be on the outside, looking in. We'll be behind. We'll still be paying these high tariffs where our competitors will not be. Therefore, we will lose literally millions of jobs that we could have been gaining and billions of dollars in trade that we could have been gaining at a time when our economy is down and at a time when we have some of the highest unemployment we've had in many decades here in the United States.
Well, that is exactly the case. It really is a win-win. It is virtually a win-win for all of our manufacturers, not just for agriculture, which I represent.
Again, we're falling behind. We're costing more jobs. We're not moving forward. All we're asking for is a vote on these three areas that we've already negotiated with Panama, that we've already negotiated with the Colombians, and that we've already negotiated with the South Koreans. All we're doing is waiting for a vote, up or down, and yet we have not been able to get that from this Congress.
Well, as my good friend from California is pointing out, in Colombia, I think most people picture Colombia as we pictured Colombia 10, 15, 20 years ago; the heart of the narco trade, everyone fearful to go out anyplace, whether it be in the cities or countryside or wherever it might be.
As a matter of fact, I remember my first trip to Colombia, I believe it was in the early 1990s. Literally wherever you traveled, we were in Cartagena and traveled around, and you had armed guards. You had an armed convoy that you traveled with.
I was there just this last year. You mentioned President Uribe and the incredible job he has done in the center of the narco traffic of South America, how they have got in and brought in those who used to be selling narcotics and used to be part of the military that was on the side of those in the drug trafficking, brought them in, trained them.
We have met, as I know you have, Mr. Dreier, and I am sure Mr. Brady, we have met with some of these young people who were part of the other side who have come in, who have been trained for jobs.
Again, as you met with them, and we met with them not only in Cartagena but also in Medellin, who would have thought about going to Medellin, where we did, and see how safe it is and met with these same young people, people in their mid-twenties, early twenties, but had spent basically their whole life on the other side, that were now productive and excited about the life in a democracy there and being able to live.
It is incredibly exciting. And it is even that much more of a reason, when they have fought and done so much to change their countryside, have risked their lives to turn their country around, that if there is anyone we should be an ally to, it should be the Colombians.
So not only are they helping us with their trade, but we are in a position there to aid them, to help them, to stand as an ally with them, as we should be with the Panamanians, as we should be with our allies the South Koreans, where, again, they are helping us at a time where economically we need these jobs in America.
This is when our Speaker Pelosi and the head of the Senate, Harry Reid, should be allowing these three already-negotiated trade agreements to come before the House and the Senate to be voted on so that we can be moving forward. They are bringing down their barriers, selling our agriculture, selling our manufactured goods, and putting literally millions of Americans to work.
I thank my friend.
That is so true. People don't realize. You know, we hear a fair amount, or some, about their trade agreement that has been negotiated but not voted on with Colombia and some with Panama, but as the gentleman from California (Mr. Dreier) so rightly mentioned, the
big one, the biggest of all the trade agreements that we have ever negotiated is with the South Koreans.
As a matter of fact I just yesterday had eight South Koreans who represented businesses in South Korea that were in my office, and they were describing to me how they wanted us to be able to pass this agreement, be able to have a vote here in the House and the Senate on this very important agreement, that their concern was that they wanted to do business with our American companies. They wanted to do business with us and that the European Union, the EU, was already negotiating, was in the process of having an agreement with them.
If their agreement went through before ours did, they would lose their ability, obviously, if they could purchase more economically from the EU, that, economically, is what they would need to do. I was looking at some statistics, that just with South Korea, not only would we not pick up that extra business, those extra jobs, hundreds of thousands of jobs here in the United States, but we would actually lose business that we already have because we would lose part of this market to--it was estimated by staff on our Ways and Means Committee, we could see an 8 percent or $1.1 billion decline in our U.S. exports to South Korea.
Again, at a time when nationally we have 9.8 percent unemployment; in California, 12.2; and in my rural northern California district it's up around 14 percent unemployment, the last thing we want to do is be losing jobs. We need to be gaining these jobs is why it's so particularly paramount at this time that we move forward.