“Almost everyone wishes for a renaissance of American manufacturing, and none have said so more louder than the Democratic presidential candidates and Democratic members of Congress. The trouble is that their deeds don't match their words…”
Writes Robert Samuelson of the Washington Post. I had a few thoughts on that, myself, back on April 11th, I blogged on the Hypocrisy of Nancy Pelosi in ducking the Colombian Free Trade Issue. (For which we also had to chide our girl Hillary, as well)
Samuelson goes on to say:
“The latest evidence of the gap between political rhetoric and economic reality is the Democratic-controlled House's decision to set aside, possibly indefinitely, the free trade agreement negotiated with Colombia by the Bush administration. On economic grounds, there's no reason to reject the agreement. Colombia's exports already enter the U.S. market duty free under the 1991 Andean Trade Preference Act. Meanwhile, many U.S. exports to Colombia face stiff tariffs -- up to 35 percent on autos, 15 percent on tractors and 10 percent on computers -- most of which would ultimately go to zero under the agreement.
The tariffs dampen demand for U.S. exports by raising their price and putting them at a competitive disadvantage. Whirlpool exports about $50 million annually of refrigerators, washer-dryers and dishwashers to Colombia from plants in Ohio, Arkansas and Iowa. On a $1,000 refrigerator, a 20 percent tariff raises the retail price $200 in a fiercely competitive market with appliances also supplied by local firms and imports from Korea and elsewhere. (Why does Colombia want the agreement? Answer: Congress has to renew Colombia's present duty-free status periodically. The agreement would make it permanent.)”
So, the “Friends of the Working Man” are standing in the factory door, saying if you want to sell your goods in Columbia, it will be at an artificially inflated prices, so naturally, you’ll sell less of them. Coincidentally, if companies sell less of their product, they don’t need as many workers. Hmmm! Who is the “Friend of the Working Man“, again?
There’s no tariff on goods coming into the US from Columbia, and here’s a chance to remove the tariffs on US goods and produce going into Columbia and the Democrats do what? Refuse to vote. In fact, it’s even worse! They were required by law to vote on any trade treaty within 90 days. Pelosi and the “Friends of the Working Man” voted to suspend that indefinitely. As I pointed out before, this relieves the two Democrat candidates for President from casting a vote which would alienate one of their constituencies. “Bad for the country?” No problem! It helps the Democratic politicians!
So, instead of enabling a level playing field on trade between our two countries, enabling manufacturers in our country to be more competitive, and employ more workers, Nancy Pelosi wants to play politics!
Here’s part of what our president said would be accomplished with CFTA:
Approving the free trade agreement will also strengthen our economy.
Today almost all of Colombia's exports enter the United States duty-free, while American products exported to Colombia face tariffs of up to 35 percent for non-agricultural goods, and much higher for many agricultural products.
In other words, the current situation is one-sided. Our markets are open to Colombia products, but barriers exist to make it harder to sell American products in Colombia.
I think it makes sense to remedy this situation.
I think it makes sense for Americans' goods and services to be treated just like Colombia's goods and services are treated. So it's time to level the playing field.
As soon as it's implemented, the agreement I'm sending Congress will eliminate tariffs on more than 80 percent of American exports of industrial and consumer goods. Many products in key American sectors, such as agriculture and construction equipment, aircraft and auto parts, medical and scientific equipment, will enter Colombia duty-free.
If you're an American farmer, it's in your interest that this agreement get passed. After all, farm exports like high-quality beef, cotton, soybeans and fruit will enter duty-free. In a time this agreement will eliminate tariffs on all of America's exports to Colombia.
Whose vision do you think represents the best interest of all Americans? Me, too!
Cross posted at Say Anything
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