U.S. Congressman John Boozman 3rd District of Arkansas

Trade

Trade is vital to the economy of the Arkansas. Over 600,000 Arkansas jobs depend on exports. Over 1,500 companies – including 1,000 plus small and medium-sized businesses – export from Arkansas. Because of this, it is essential to maintain and encourage fair and open trade in international markets.

In this time of economic difficulty for many American families and businesses, we must work to remove some of the barriers that penalize American companies, and their workers, who export our products to foreign markets and discourage investment in American manufacturing. The 110^th Congress left a number of trade agreements unresolved and many foreign markets for American products have been left in-limbo.  Congress should act swiftly to pass the U.S. - Columbia Free Trade Agreement, the U.S. - Panama Free Trade Agreement, and the U.S. - Korea Free Trade Agreement.  Special interest groups and politicians in Washington continue to block the ratification of these trade agreements, but the fact remains that the United States and American workers stand to gain the most from these agreements.

Tariffs and other trade barriers placed on American products by other countries limits the ability for American businesses and manufacturers to compete in foreign markets. Under the current rules of the Andean Trade Preferences Act (ATPA) and the generalized System of Preferences (GSP), 90% of Columbian exports enter the U.S. duty-free, while U.S. agricultural, manufacturing, and services exports to Columbia face heavy tariffs and barriers to trade. Under the U.S. - Columbia Free Trade Agreement, more than 80% of U.S. manufacturing exports to Columbia would enter duty-free and tariffs for more than 50% of U.S. agricultural exports to Columbia would be eliminated. The rest of these tariffs that make U.S. products less competitive would be phased out over time; in 10 years for manufactured goods and 15 years for agricultural goods. The situation with the U.S. Panama Free trade Agreement is similar, whereas 96% of Panamanian imports to the U.S. enter our markets duty-free, while Americans still pay hefty duties to get their products into Panama’s markets. In 2006, U.S. exports to Panama were valued at more than $2.7 billion. The U.S. Panama Free Trade Agreement would immediately allow 88% of American manufacturing exports to enter Panama duty-free and phase out all other tariffs over time. In general, U.S. export to South Korea face higher tariffs and trade barriers than Korean exports to the U.S., therefore an agreement that levels the playing field for American businesses and companies, such as the U.S. – Korea Free Trade Agreement, is a natural step in the right direction. According to the U.S. International trade Commission, the estimated impact of the U.S. Korea Free Trade Agreement would be an increase of $10-11.9 billion in the U.S. Gross Domestic Product. The millions of dollars these agreements would save American businesses and manufacturers every year would be reinvested into our economy and communities, creating high-paying jobs for many Americans.

Not only do carefully negotiated trade agreements benefit the U.S. economy, but also benefit the U.S. diplomatically. Our partners in the international community greatly appreciate these agreements and the recognition they receive as a partner of the U.S. and a player in the global economy. These agreements serve as diplomatic tools to reach out to other nations, forge healthy relationships, create economic empowerment for the people of developing countries, and share American culture with the world. Open trade will promote democracy and help to improve political and personal freedom in many of the underdeveloped countries across the globe. 

I will continue to support efforts to open markets to U.S. goods while I serve in Congress, but in doing so, will continue to work to ensure that our partners trade fairly. Free trade must be fair. When trade agreements are followed to the letter, American workers and consumers reap the benefits. However, if our partners don't abide by the rules that are agreed upon, American jobs are at risk. I will work with my colleagues in Congress and the Administration to ensure that we have free, but fair trade policies in effect.  

Congressional Research Service Reports:

The Congressional Research Service (CRS) is part of the legislative branch of the federal government. CRS, which is a department of the Library of Congress, works exclusively as a nonpartisan analytical, research, and reference arm for Congress.

Trade Agreements: Impact on the U.S. Economy 

Trade Agreements: Procedure for Congressional Approval and Implementation 

Trade Promotion Authority and Fast-Track Negotiating Authority for Trade Agreements: Major Votes