COA Letter to the U.S. Senate Regarding Colombia and Panama FTAs

Dear Leaders Reid and McConnell:

On behalf of the Council of the Americas, we urge swift passage of the pending free-trade agreements with Colombia and Panama in support of President Obama’s stated goal of doubling exports in five years.

With the summer legislative window narrowing, the case for urgency is simple: the longer the U.S. delays, the larger market share U.S. producers lose, as global competitors fill the void. While the agreements await ratification several years after signature, U.S. exporters continue to face high tariffs in crucial foreign markets. In the meantime, Canada, China, and other countries have rapidly increased exports to Colombia and Panama, and U.S. market share has declined.

We are particularly concerned that a free trade agreement between Colombia and Canada, to enter into force shortly, will disadvantage U.S. agricultural and other exporters. For example, U.S. wheat producers estimate that the U.S. share of the Colombian wheat import market could fall from about 70 percent to 30 percent due to the Canadian-Colombian agreement. In addition, Colombia has implemented a trade agreement with the MERCOSUR countries, including Argentina and Brazil, causing key U.S. agricultural exports to Colombia to decrease significantly. Colombia has also begun trade negotiations with China.

The geopolitical arguments are even more compelling. The United States enjoys a historic connection to Panama that is in danger of eroding at just the moment when Panama is becoming a true crossroads of global commerce. Colombia is perhaps our closest ally in a strategically important region where U.S. allies are scarce. Observers are increasingly asking about the benefits of friendship with the United States; they have no illusions about the political costs.

Moreover, Colombia has witnessed progress as a nation on all fronts—on respect for human rights, reduction of violence against union leaders, and economic and social development. Indeed, since the August 2010 inauguration of President Juan Manuel Santos, progress has accelerated.

In short, the time for action is now. We look forward to working with you to promote open markets and provide U.S. workers with opportunities to remain competitive in a global market while seeking to assist broad-based economic development with our close friends in Latin America.

Sincerely,

John Negroponte
Chairman

Susan Segal
President & CEO

Eric Farnsworth
Vice President