Free Trade Agreements

Floor Speech

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Mr. BOUSTANY. I thank the chairman for leading this effort tonight, and all of your leadership on trade issues as we go forward.

Expanding export markets for American farmers, manufacturers, and service providers is essential if we're going to have a strong American economy with private sector job creation. The United States has not acted aggressively enough to open markets over the past 3 years under the Obama administration. And now we're falling behind as other nations gain market share.

America has had a strong comparative advantage in agriculture production historically. In fact, in my home State of Louisiana, the number one export is agricultural commodities. Louisiana ranks fourth among the 50 States in exports. Over 500,000 jobs in my small State, a small State with a little over 4 million people, 500,000 jobs in Louisiana are supported directly by trade. Our rural communities in my State are supported by the strength of agricultural production and access to open markets. The local dentist's office, the local school, the small gas stations, all these things depend on the strength of agricultural production, not only in Louisiana but across our country. We need open markets for agricultural products if we're going to sustain these rural communities and economic development.

The trade promotion agreements with Colombia, Panama, and South Korea amount to over $13 billion annually in new market access. The failure to implement these agreements has caused significant loss of market share. Louisiana, for instance, is the third-largest rice producer in the Nation. Louisiana and U.S. rice exporters face prohibitive tariffs currently in Colombia and Panama. These agreements would phase out these tariffs, creating huge opportunities for Louisiana farmers and millers. Over one-third of Louisiana exports to South Korea would see immediate duty relief and elimination, a significant advantage for Louisiana businesses.

The administration's failure to send these agreements over the past 3 years has had significant adverse consequences. In fact, on January 1, 2009, Colombia's trade agreement with Argentina went into effect, giving Argentina's farmers a competitive advantage over U.S. farmers. In fact, America's market share in the Colombian market for corn, wheat, and soybeans plunged from 71 percent in 2008 down to 27 percent through the first 10 months of 2010, a 44 percent drop in market share, precipitously, that was nearly matched by Argentina's gain. And that's just one example of the consequences of the failure to act on this--lost market share and job loss. We must immediately implement these agreements to promptly avoid further loss.

Mr. Speaker, American competitiveness, American credibility, and American leverage with our economic competitors is at stake. Passing these agreements with Colombia, Panama, and South Korea is only a start. America needs to move beyond that. We need a well thought out trade strategy that will allow American farmers, businesses, and workers to compete and prosper. An American trade strategy is a critical instrument of American foreign policy because our economic strength is the foundation of both our soft power and our hard power. An American trade strategy is essential for American leadership in the 21st century.

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