From Leader Boehner's Desk: Colombia Free Trade Agreement

SPEAKER PELOSI PUTS AMERICAN JOBS AT RISK BY BLOCKING COLOMBIA FREE TRADE AGREEMENT

WASHINGTON POST: HOUSE DEMOCRATS’ BLOCKING COLOMBIA BILL “PERVERSE”

April 16, 2008 I Permalink

House Democrats are still refusing to vote on the Colombia Free Trade Agreement despite the fact that it would level the playing field for American workers and create jobs in the U.S. In an effort to move this critical agreement that could aid our nation’s sluggish economy, House Republican Leader John Boehner (R-OH) wrote a letter (pdf)to Speaker Nancy Pelosi (D-CA) asking her what it will take to bring the Colombia Free Trade Agreement up for a vote in the House. Reuters reported the story:

“The top Republican in the U.S. House of Representatives urged House Speaker Nancy Pelosi on Tuesday to spell out ‘exactly’ what action she wants Congress to take before lawmakers vote on a free trade pact with Colombia. … He said her demands for action to help Americans cope with current economic woes were ‘both broad and vague, causing some to question whether you are simply using these demands as a pretext for blocking the trade agreement altogether. I respectfully request that you detail exactly what issues you want to see action on in order to bring the Colombia Free Trade Agreement to the House floor for a fair, straight up-or-down vote.’”

Speaker Pelosi and House Democrats have been repeatedly lambasted by editorials coast to coast over the last week for putting American jobs at risk and thumbing their nose at a key South American ally, including several more today:

“Colombia Pact Deserves Democrats’ Support,” Dallas Morning News Editorial, April 16, 2008

“Rep. Pelosi asks ‘How High’ When Big Labor Says ‘Jump,’” Washington Examiner Editorial, April 16, 2008

“A Setback on Trade in Washington,” Financial Times Editorial, April 16, 2008

Speaker Pelosi’s refusal to move the agreement leaves American exports flowing into Colombia facing high tariffs while Colombia’s exports enter the U.S. duty free. In his Washington Post column this morning entitled, “Regressing on Trade,” Robert Samuelson provides specific examples of exactly how these tariffs vastly increase costs on American goods and called House Democrats’ decision to kill the agreement “perverse”:

“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 annually exports about $50 million worth 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...

“What House Democrats did was particularly perverse.”

At a time when families and businesses are dealing with rising costs of living, both parties in Washington, D.C. should be working together to identify new places to sell American products and new avenues to create American jobs. And with our nation facing difficult economic times, it is irresponsible for Speaker Pelosi and her Democratic colleagues to choke off a vital new market for American workers, farmers, and businesses – all for callous and cynical political gain.

Will the Speaker lay out a reasonable way forward … or will she continue to block an agreement that would help the American economy?

Republican Leader Press Office
Rep. John Boehner (R-OH)
H-204, The Capitol
(202) 225-4000
http://republicanleader.house.gov/