United States-Korea Free Trade Implementation Act

Floor Speech

BREAK TRANSCRIPT

Mr. LIEBERMAN. Mr. President, I rise to urge my colleagues to lend their swift support to the pending free trade agreements with South Korea, Colombia, and Panama that have at last come before this Chamber. In approving these FTAs, we have an opportunity to show the American people that we in Congress are prepared to set aside partisan politics and come together to do something truly important to help our nation at a time when our economy is under unprecedented pressure.

Simply put, free trade agreements like the ones before us today are not a choice for the United States--they are a necessity. As President Clinton used to point out, only 4 percent of the world's population lives in the United States, and there is only so much we can sell to each other. Creating new jobs and growing our economy requires tapping into the other 96 percent. And that requires breaking down trade barriers and lowering tariffs so that American goods can reach more consumers at a price they can afford.

That is precisely what these three FTAs will accomplish. This legislation is a jobs bill that won't add a dime to the deficit. Instead, it will add $10 to $12 billion to our GDP, grow U.S. exports by $13 to $15 billion, and support an additional 100,000 American jobs.

These FTAs are not only critical for our economic recovery, however. They are essential to our global leadership and our national security.

In the case of the Korea-U.S. FTA, known as KORUS, the success or failure of this measure is inseparable from U.S. leadership in the Asia-Pacific region. The balance of power in Asia will determine the shape of the 21st century and whether it will be an American century or a Chinese century. Our friends and allies across this region are looking to Washington. In the face of a rising Beijing, they want to know if the U.S. is a country they can count on, or whether we are in retreat. From Japan to India to Australia, there is no test for American leadership today that is more urgent than approving our FTA with South Korea.

That is because the competition for the future in the Asia-Pacific is as much about economic power as it is about military power. Since 2000, approximately 50 free trade agreements have been put in place in East Asia alone, with approximately 80 additional agreements currently under negotiation. The United States is party to just four FTAs in the Asia-Pacific region.

Passing KORUS is the first step to righting this wrong and restoring a balance of economic power that favors America. Doing so will send an unequivocal message across the Asia-Pacific of American strength and commitment. It will also deepen one of our most important alliances in the world, with the Republic of Korea--a dynamic, free market democracy that has climbed from the depths of poverty and the devastation of war to become a model for the entire planet and a great global ally in the cause of freedom.

The economic benefits of KORUS are also extraordinary. This FTA will increase exports of American goods to Korea by around $11 billion once the agreement is fully in effect, supporting as many as 70,000 additional jobs here in the United States.

The agreement will also grant American firms greater access to Korea's $580 billion services market, creating new jobs for American workers in sectors from delivery and telecommunications services to energy and environmental services.

While South Korea is on the cusp of becoming our third-largest free trade partner after Canada and Mexico, free trade agreements with Colombia and Panama also offer enormous opportunities for the United States and will open the way for tremendous growth here in our own hemisphere.

Colombia is the oldest democracy in Latin America and one of America's most steadfast allies in that region. Like South Korea, Colombia is a great global success story--a country that has overcome narco-insurgency and terrorism, and a pro-American bulwark against Hugo Chavez's corrupt authoritarianism.

By completing this FTA, the U.S. will strengthen not only our Colombian allies, but also our shared values of democracy, rule of law, and the free market across Latin America.

The U.S.-Colombia FTA will also strengthen our own economy--expanding U.S. exports by more than $1.1 billion, increasing U.S. GDP by $2.5 billion, and creating thousands of U.S. jobs. Keep in mind, currently Colombia collects $100 in tariffs on U.S. exports for every $1 the United States levies on Colombian goods. With this FTA, that will end.

Similarly, the U.S.-Panama FTA will eliminate tariffs and other barriers to U.S. exports, promote economic growth, and expand trade with one of the fastest growing economies in Latin America. American companies will be granted immediate access to Panama's $21 billion services market, including priority areas such as financial services and telecommunications. Panama's economy expanded 6.2 percent in 2010, with similar annual growth forecasts through 2015. All of this translates to more opportunities for American workers.

Some have argued that free trade agreements threaten to increase our trade deficit. However, as the U.S. Department of Commerce recently pointed out, in recent years, U.S. manufacturers have run a $47 billion trade surplus with our FTA partners; by contrast, we have incurred a trade deficit of $823 billion with countries where no FTAs are in place.

Time is of the essence. If we delay any further on these agreements, it will cost our country dearly in jobs and growth. The rest of the world is not standing still.

The European Union finalized a free trade agreement with South Korea over the summer, and Canada implemented a free trade agreement with Colombia just weeks ago. If we do not act, jobs and market share that could have gone to U.S. companies will instead head to their competitors in Europe and Canada. That is why we must act now.

In conclusion, let me underscore how important it is that these FTAs are the beginning, not the end, of a revived American global trade agenda. In order to get our economy back on track, in order to create the new jobs we need, in order to lead the world economically, the U.S. must have a forward-looking, optimistic trade liberalization vision.

That is true not only in the Asia-Pacific and Latin America but also in the Middle East where millions of people who have long suffered and stagnated under thuggish dictators are at last grasping for greater political freedom and economic opportunity. More than foreign aid, countries like Tunisia and Egypt need the U.S. and Europe to lower trade barriers. That is why I believe so strongly that the U.S. should immediately begin negotiations for an FTA with Tunisia. Tunisia is a small country, but it is the place where the Arab Spring began and consequently critical to the future of Arab democracy.

I strongly urge the Obama administration to begin negotiations on a free trade agreement with Tunisia as quickly as possible. The freer the flow of world trade, the stronger the tides for economic progress, prosperity, democracy and peace will be.

Beginning today with the passage of these critical free trade agreements with South Korea, Colombia and Panama, we take another step towards restoring our economy and strengthening our global leadership.

I yield the floor.

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