Today, Congressman Henry Cuellar (TX-28), founder and Chair of the Pro-Trade Caucus, voted for passage of the Free Trade Agreements with Panama, Colombia and South Korea. The three bills passed the U.S. House of Representatives Wednesday evening.

“Our country has been handed a good deal today. The Free Trade Agreements with Panama, Colombia and South Korea are not only beneficial for U.S. companies and our international relations, but they will also create American jobs to help rehabilitate our country’s economy at a time most needed,” Congressman Cuellar said. “I am pleased with the highly bipartisan agreements that will advance international trade, keep the U.S. competitive, and create a quarter of a million U.S. jobs.”

President Obama formally submitted the three Free Trade Agreements to Congress on October 3, 2011. The trade agreements will improve and jolt our export market, making it easier for U.S. businesses to sell American goods to Panama, Colombia and South Korea. The deals have economic significance at home and abroad: it is estimated the trade deals could increase U.S. exports by $13 billion annually, reduce tariffs, and strengthens foreign relations with key strategic partners.

“As the Chairman of the Pro-trade Caucus and representing a trade-centric district in South Texas, I strongly supported the passage of the trade agreements,” Congressman Cuellar said. “Laredo, Texas, my hometown, is home to the nation’s largest inland trade post and the 6th largest trade port. These Free Trade Agreements will have a trickle effect in creating jobs in the 28th District of Texas and the rest of the state of Texas. By leveling the playing field with 21st century trade deals, we increase American exports abroad and spur domestic job creation.”

These agreements have gained wide bipartisan support in Congress and amongst organizations, including the U.S. Chamber of Commerce, Texas Instruments, and the American Farm Bureau Association. Today, trade plays a vital role in the employment market by supporting 50 million American jobs, according to the U.S. Department of Treasury.

Click here to watch Congressman Cuellar speak on the floor of the U.S. House of Representatives on the Free Trade Agreements

Background:

The Free Trade Agreements would decrease the number of tariffs and duties, ease barriers for services and launch new labor environmental enforcement standards.


More than 80 percent of American industrial exports will instantly become duty-free – this includes nearly all goods in farming and construction equipment, aircraft and parts, auto parts, and information technology equipment. Any industrial tariffs that do remain will be phased out over the next decade, leading to a major jump in American exports. Over 50 percent of American agricultural exports will instantly become duty-free.  Nearly all tariffs that remain will be removed within 15 years.

The U.S. Colombia Free Trade Agreement would expand exports by more than $1.1 billion with the tariff reductions, according to the International Trade Commission. Without the U.S.-Colombia Free Trade Agreement, the U.S. cotton exporters to Colombia will have unnecessarily paid over $14 million in tariffs.

This bill passed the U.S. House of Representatives with a bipartisan vote of 262-162.


The Panama Agreement will lead to a significant boost in trade between the U.S. and Panama, which is one of the quickest growing economies in Latin America. It will provide support for thousands of U.S. jobs.

Panama holds a unique strategic location as a primary shipping route, which only adds to the importance of the agreement. Roughly two-thirds of the Panama Canal’s yearly shipments are either heading toward or coming from ports in the United States.

This agreement provides the U.S. with new access to Panama’s $21 billion services market, which includes important sectors like financial, telecommunications, distribution, computer, energy, express delivery, environmental and professional services. The U.S. Trade Representative reports that over 87 percent of U.S. exports of consumer and industrial products to Panama will become duty-free immediately, with remaining tariffs phased out over ten years.

This bill passed the U.S. House of Representatives with a bipartisan vote of 300-129.


Korea has the world’s 12th largest economy.  The South Korea Agreement will raise U.S. exports by over $10 billion and will support 70,000 American jobs.

The South Korea Agreement will remove tariffs on more than 95 percent of industrial and consumer products over five years, and it contains critical steps for expanding the market access for American automobile companies and auto workers.  Additionally, it provides more chances for American farmers, ranchers and food processors to export their goods to South Korea’s 49 million consumers by decreasing tariffs on U.S. exports to South Korea and putting a plan in place to deal with other barriers to American exports.

The U.S. International Trade Commission estimates passage of the U.S.-South Korea Free Trade Agreement would increase U.S. exports by over $10 billion and create 70,000 American jobs. According to the National Association of Manufacturers, the U.S. exports to Korea would grow by more than one-third.

This bill passed the U.S. House of Representatives with a bipartisan vote of 278-151.