US, Colombia reach free trade agreement

The Obama administration announced a deal with Colombia on Wednesday that it said would allow a long-stalled trade agreement to move forward. 

President Obama will meet Thursday with Colombian President Juan Manuel Santos at the White House to formally announce the deal.

In a press call, U.S. Trade Representative Ron Kirk said the plan “significantly expands the protections of labor leaders and organizers.” 

“It bolsters efforts to punish those who have perpetrated violence against union members and, we think, substantially strengthens their laws and enforcement.”

{mosads}Kirk said the plan should quell concerns of U.S. unions over the effect on jobs and have a “positive effect on American jobs.” 

But the AFL-CIO said it was disappointed with the deal, and some members of Congress close to labor also said more needed to be done.

House Ways and Means ranking member Sander Levin (D-Mich.)
said while the administration has received “important commitments to
address serious issues regarding worker rights, violence and impunity,”
more work needs to be done.

Rep. Mike Michaud (D-Maine), chairman of the House Trade
Working Group, said he was “appalled that the administration is putting
forward this action plan as the answer to Colombia’s rampant human rights and
labor rights violations.”

He said the action plan presented “easy-to-reach benchmarks” that did not address what he said were widespread human rights violations in Colombia. 

But Senate Finance Committee Chairman Max Baucus (D-Mont.) suggested the agreement on labor could be enough to move the Colombia trade deal forward. He said it appears “to represent a solid basis on which to build on
Colombia’s good work and ensure that Colombia takes additional steps to
strengthen labor rights, reduce violence and increase prosecutions of those
responsible for the violence.” 

U.S. trade officials also said trade agreement with Panama should be completed within the next several weeks. On Tuesday night, Panamanian President Ricardo Martinelli signed new labor laws into effect and is expected to push through a tax information exchange agreement or TIEA, that deals with Panama’s history a tax haven within the next several weeks, officials said. 

Ambassador Miriam Sapiro, the deputy U.S. trade representative, testified recently that the TIEA signed by the U.S. and Panama back in November is the final element that must be approved by the Panama National Assembly before the Obama administration will submit the pact to Congress.  

That would set up trade deals with Colombia, Panama and South Korea for Congress to consider this year.

Under the agreement announced Wednesday, Colombia will follow a roadmap to make changes in its labor laws this year. Those include providing greater protections for union leaders, such as shop stewards and bargaining committee members, workers trying to organize or join a union and former union activists who might be threatened because of their past union activities.

Most of the requirements should be wrapped up before Congress votes on the agreement, Kirk said. 

The plan also requires the Colombian government to revise its teacher relocation and protection program to address high risks to teachers. The agreement requires Colombia to impose tougher sentences, up to five years in jail, for those found guilty of making threats against labor union workers and directs the Colombian National Police to assign 95 full-time judicial police investigators to help in prosecution.

The International Trade Commission (ITC) has estimated that
the agreement’s tariff reductions will expand exports of U.S. goods by more
than $1.1 billion and increase gross domestic product by $2.5 billion.

More than 80 percent of exports of consumer and industrial
products to Colombia will be duty-free immediately, with remaining tariffs
phased out over 10 years, according to a fact sheet from the U.S. Trade
Representative’s office.

Additionally, more than 92 percent of exports of
agricultural equipment and 88 percent of construction equipment to Colombia
will be immediately duty-free.

U.S. trade officials didn’t provide a timeline for
ratification of the pending free trade deals,  saying they would need to
meet with congressional leaders to determine the path. 

House Ways and Means Committee Chairman Dave Camp (R-Mich.) and Trade
Subcommittee Chairman Kevin Brady (R-Texas) said they were encouraged and are
prepared to move forward with the deal. They pressed for a July 1 deadline for congressional consideration.

“I call on the administration to continue pressing ahead,
such as by beginning the technical drafting work with us on the implementing
bill, which is necessary so that Congress can consider all three of our pending
trade agreements by July 1,” Camp said. “The July 1 timeline
continues to be very important for American exporters and workers, who will
continue to fall behind their competitors in countries that already have trade
agreements with Colombia until our trade agreements are implemented.”

This story was updated at 5:53 p.m.