WASHINGTON, DC - Rep. Jim McDermott (D-WA), Ranking Member of the Ways and Means Trade Subcommittee issued the following statement, as prepared for delivery, today at a Subcommittee hearing on the pending South Korea Free Trade Agreement (FTA):
“Thank you, Chairman Brady for scheduling this hearing. Finally, we are discussing a free trade agreement that is ready for Congressional consideration right now. An FTA that will generate more than $10 billion in increased U.S. exports. $11 billion in increased GDP. As many as 277,061 new American jobs.
The Korea FTA brings economic benefits to each and every State in the Union.
In Texas, where Chairman Brady and Mr. Doggett live, estimates indicate that the FTA will create almost 27,000 new jobs in a range of sectors from agriculture to transportation.
In Washington, where Mr. Reichert and I reside, we catch a lot of fish and produce a lot of agriculture and timber. The Korea FTA is expected to create 1,500 new jobs in these sectors alone.
In California, where Mr. Davis and Mr. Herger live, and where unemployment is 12.3 percent, it’s estimated the FTA will create 26,000 new jobs.
In Florida, where Mr. Buchanan lives, the state’s citrus growers and processors support the FTA, which would phase out steep tariffs on U.S. orange juice. And those additional exports could go through that port in Manatee he talks about so much.
Illinois, where Mr. Schock lives, is the second largest soybean producer in the country. Under the FTA, soybean production will increase by $565 million to $850 million.
And, we know that Congresswoman Jenkins is very concerned about beef. Nebraska, where Mr. Smith’s district is located, is another major beef producer. Well, under the Korea FTA, beef exports are expected to increase by $633 million.
(OVER)
It is clear the South Korea FTA would provide a real boost, spurring economic growth all over the country.
The Administration has been ready to move this FTA for more than a month. And yet the Republican Majority refuses to move, putting all of the FTA’s potential economic gains - in California, Illinois, Florida, Kansas and Nebraska, and all over the United States - in jeopardy.
The EU-South Korea FTA goes into effect on July 1, 2011. Each day that Congress delays passage of the U.S.-South Korea FTA puts U.S. businesses and workers at a greater disadvantage compared to their European counterparts.
The Republicans know this. Back in 2009, they argued that we should pass the flawed version of the Korea FTA, even before the auto provisions were fixed, to make sure that we didn’t fall behind the EU. The Republicans’ own estimates suggest that U.S. workers and businesses could lose $1.1 billion in exports to South Korea once the EU-South Korea trade agreement is fully implemented. Well that is right around the corner, my friends.
So what is the hold up? It can’t be the Colombia FTA any more as the President will be announcing his Action Plan on the FTA later today - exactly what the Republicans demanded. If, despite this announcement, the Republicans continue to dither on Korea, than their motivation is just plain ugly politics. And it is time for that to end. There is too much on the line.
So here is what I suggest: USTR Ambassador Ron Kirk should send the draft implementing legislation to Congress immediately and request that the House Ways and Means Committee do a swift review and mock mark-up.
After a reasonable period for consultation, let’s say three weeks, the Administration should then formally submit the FTA implementing legislation so that it can be introduced and Fast Track procedures can be initiated, including the specific timelines for consideration.
There is no reason that both the House and the Senate can’t pass this meaningful agreement before Memorial Day. Before it’s too late for American families and businesses, it’s time to get moving."
