Congress and President Obama have repeatedly refused opportunities to advance trade legislation. Three pending Free Trade Agreements (FTAs) — particularly one with Colombia (CFTA) — is costing U.S. consumers and businesses billions in lost opportunities.

By Geoffrey Michener & Brian McGraw at The American Spectator

President Obama recently recognized this week, May 16-22, to be World Trade Week. Despite this supposed display of support, Congress and President Obama have repeatedly refused opportunities to advance trade legislation. Three pending Free Trade Agreements (FTAs) — particularly one with Colombia (CFTA) — is costing U.S. consumers and businesses billions in lost opportunities.

The U.S. International Trade Commission estimates that the CFTA would increase U.S. GDP by $2.5 billion. Exports to Colombia would increase by $1.1 billion if tariffs — ranging from 10 to 35 percent per good — were lifted. And this trade agreement would do just that. On the import side, 90 percent of Colombian goods already enter the United States without any tariffs. Imports from Colombia are projected to increase by $487 million annually if the agreement is approved.

Economists from across the political spectrum have argued that reducing trade barriers is one of the most effective ways to spark economic growth. The Copenhagen Consensus, a Danish think tank, argues that completing the World Trade Organization’s Doha Round of trade talks could boost growth in the world’s poorest countries by 1.4 percent per year.

The Colombia FTA is a small but important piece of that puzzle. It is also low-hanging fruit. Negotiations were completed three years ago. All that’s left are votes by the House and Senate. Congress needs to pluck this fruit to help the economy get going again.

These agreements are not perfect. They contain a number of trade-unrelated provisions, mainly labor and environmental standards. But the benefits of increased trade are huge.

FULL STORY

Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
•