16 December 2007:
President George W Bush approved a free trade agreement between the United States and Peru, claiming the agreement would boost exports from the states into Peru. The president called upon Congress to approve pending agreements with Colombia, Panama, and South Korea as well.
"Expanding trade advances the deepest values and the economic interests of the United States," President Bush said. "Opening markets has helped expand democracy, strengthen the rule of law, and lift hundreds of millions out of poverty."
The Carnegie Endowment disagrees though, finding that the Doha Round strategy that President Bush is pursuing does not by itself impact GDP in any nation more than one-half of one percent, and actually deepens poverty in some countries. The Carnegie report is titled: Winners and Losers -- Impact of the Doha Round on Developing Countries, and is available for download on its website carnegieendowment.org.
Law H.R. 3688, the United States-Peru Trade Promotion Agreement Implementation Act, eliminates duties for 80 percent of agricultural products and other goods made in the United States and sent to Peru.
"It will also immediately eliminate duties on more than two-thirds of U.S. agricultural exports to Peru and eliminate most of the remaining duties over the following 5 to 15 years," the president said. The agreement, more importantly, creates a secure framework for investors from the United States to buy-into Peru's growing economy. The GDP of Peru at present time is running twice the rate of growth seen in the United States.
"For the sake of America's economy and security, Congress should promptly approve the vital free trade agreement with Colombia. Both houses of the Colombian legislature have expressed overwhelming support for the trade agreement with the United States. Now they are waiting to see if we will hold up our end of the deal," according to the White House.
The agreement with Colombia --a large source of illegal drugs for users in the United States-- claims to allow 8,000 companies based in the United States an open door to buyers in the South American country.
"Once implemented, this agreement will immediately eliminate tariffs on more than 80 percent of American exports of industrial and consumer goods, and it will provide significant new duty-free access for American agricultural commodities," the president said.
Colombia's economy has grown nearly 7 percent year-to-year -- more than twice that of the United States.
"Colombia is the largest market for U.S. agriculture exports in South America," the president concluded.
"The U.S.-Panama free trade agreement will build on this vibrant trade relationship, immediately eliminating tariffs on 88 percent of U.S. industrial and consumer goods exports to Panama. It will provide significant new duty-free access for American farmers and ranchers, and create opportunities for American businesses to participate in the Panama Canal expansion project. It will also provide new market access for U.S. service suppliers, including in Panama's key financial services sector," the White House stated in its letter to Congress.
A free trade agreement between the United States and South Korea claims to open the doors for the trade of automobiles and professional services from the United States into that southeastern Asia economy.
###
---This content is copyrighted by Think &
Ask, reproduction of any kind is not permitted without written
consent.---
