WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today issued the following statement on the release of the July 2007 U.S. International Trade in Goods and Services report which showed that U.S. exports increased by 11.4 percent to $916 billion year-to-date (through July) over 2006. Imports also increased 4.6 percent to $1,330 billion and the trade deficit narrowed 8 percent during the same time period.
“With our trade deficit for the year shrinking by 8 percent, today’s numbers clearly show the positive impact of exports and trade on the American economy. President Bush is committed to helping Americans benefit from the world economy. Congress can help U.S. exporters by passing the pending trade agreements with Peru, Colombia, Panama, and Korea.
“Tomorrow, I will to travel with members of Congress to Panama, Peru and Colombia so we can all see first-hand how these agreements can help our businesses, farmers, and workers.
“The Western Hemisphere and the United States have the opportunity to build upon our growing export success with these pending trade agreements. We must continue to open new markets, so we can continue to grow. Agreements with Panama, Peru and Colombia make sense economically and they make sense for our national security. Congress has already allowed over 90 percent of imports from these countries to enter the U.S. duty-free.
“Increasing trade opportunities in our hemisphere spurs economic competitiveness, creates jobs, stimulates innovation and helps drive national prosperity. Passage of these agreements will level the playing field, giving our exporters the same opportunities. It will open markets with about 75 million consumers and a GDP of almost $246 billion.
“These agreements are good for democracy. They will help Peru, Colombia and Panama on their paths to peace, true social justice and prosperity. Creating geopolitical stability will help keep America safer and more secure.
“The bottom line is that free trade agreements spur trade. And trade builds businesses, employs people and creates stability and prosperity for citizens throughout the Americas.” Secretary Gutierrez will lead a congressional delegation to Panama, Peru and Colombia, Sept 12-15 to discuss passage of their free trade agreements.
Background: Bilateral free trade agreements are one of the best ways to open up foreign markets to U.S. exporters. Today, the United States has implemented trade agreements with 14 countries. Last year, trade with countries with which the United States has trade agreements was significantly greater than their relative share of the global economy. Although comprising 7.5 percent of global GDP, not including the United States, trade agreements countries accounted for more than 42 percent of U.S. exports.
The Korea, Peru, Panama, and Colombia trade agreements would level the playing field for U.S. workers and businesses. The trade agreements will give U.S. businesses duty-free access to growing markets with a combined population of approximately 126 million consumers and GDP of almost $1.1 trillion Between 2002 and 2006, US exports to Peru and Colombia grew by 87 percent equaling $9.6 billion.
The United States is Korea’s third leading trading partner, accounting for 13.3 percent of Korea’s exports and supplying 10.9 percent of the country’s imports in 2006. Korea-U.S. bilateral trade has increased by more than one-third in the past five years from $58.1 billion in 2002 to $78.2 billion in two-way trade in 2006.
The United States is Peru’s leading trading partner, accounting for 23.3 percent of Peru’s exports and supplying 16.4 percent of the country’s imports in 2006. Peru-U.S. bilateral trade has more than doubled over the past decade from $3 billion in 1996 to $8.8 billion in two-way trade in 2006, due in large part to the Andean Trade Promotion and Drug Eradication Act (ATPDEA).
The United States is Panama's largest trading partner, with two-way trade reaching nearly $3.1 billion in 2006, an increase of 24 percent over 2005. With 2006 exports of $2.7 billion and imports of $379 million, the U.S. continued to maintain its huge trade surplus with Panama.
The United States is Colombia’s leading trade partner, accounting for 39.6 percent of Colombia’s exports and supplying 26.5 percent of the country’s imports in 2006. Colombia-U.S. bilateral trade has almost doubled over the past decade, from $9 billion a year in 1996 to approximately $16 billion in two-way trade in 2006, due in large part to the ATPDEA. Colombia is currently the 29th largest export market for U.S. goods.
For more information, please visit http://trade.gov/fta/index.asp.
Source: U.S. Department of Commerce
