Thank you for contacting me in regards to the Columbian Free Trade Agreement. It was a pleasure to have an opportunity to learn your views.
As you know, The Columbia Free Trade Agreement would eliminate 80 percent of U.S. export tariff payments on consumer and industrial goods immediately, and 100 percent within ten years. Unfortunately, Speaker Nancy Pelosi's action in forcing a political vote to remove the customary fast track authority traditionally awarded to Free Trade Agreements has created a very troublesome parliamentary situation and a breakdown in trust surrounding the pact. In attempting to control a complex web of international relations, domestic policy and campaign politics she has not fully defined her intentions and thus created uncertainty among our allies around the world.
On April 10, 2008 Speaker Nancy Pelosi forced a party line vote through the House to waive the "expedited procedures" in the 1974 Trade Act which would have assured a vote on the trade deal. I voted against this rule change for a number of reasons, but primarily because I believe changing the rules in the middle of the game sends the wrong signal to all of our trade partners across the world. This action most certainly created uncertainty and instability among the United States and our allies.
Human rights conditions around the world are of the utmost importance to me. However, violence against union workers as a justification to delay this agreement indefinitely seems to be a bit of a red herring. It must be acknowledged that Colombia is an unusually violent place because of everything from criminals to drug cartels and the Marxist terror group known as FARC. Evidence that union members are victimized more than others seems to me to be rather thin. Moreover, by participating in free trade with the United States legitimate business can be seen as a way to improve economic conditions in a society where some might otherwise turn to violence. I am a firm believer that free markets and trade are the best engines of growth and antidotes to extremism.
The economic consequences of failure to approve the Columbia Free Trade agreement are vast. Not approving this trade deal also creates benefits for the oil rich socialist dictator Hugo Chavez of Venezuela . According to the U.S. Department of Commerce estimate based on World Trade Atlas data and Colombia tariff schedule, it is costing U.S. exporters $2 million a day in higher tariffs over the 521 days since the agreement between the United States and Columbia was signed, totaling more than $980 million. Under the agreement most U.S. exporters to Colombia would see their tariffs, now ranging from 7% to 80%, slashed to zero . For a company such as Caterpillar, a major exporter to Colombia , that could mean a $200,000 savings on a piece of heavy equipment.
Free Trade has increased productivity, has led to rising living standards and made the American economy more competitive. There is no question in my mind that the Columbia Free Trade Agreement would be approved if the Speaker allowed a vote on the pact. It makes no sense to me why the most democratic institution in the history of the world wouldn't be allowed to have a vote.
Again, thank you for contacting me and please feel free to do so again in the future in regards to any issue that may be of concern to you.
Sincerely,
LEE TERRY
Member of Congress
11717 Burt Street, Suite 106
Omaha, NE 68154
Phone: 402-397-9944
http://leeterry.house.gov