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Three stalled trade agreements are jeopardizing a vital cog of this country’s economy. The inability of Congress and the Obama administration to compromise on Free Trade Agreements with Colombia, Korea and Panama is costing the United States $3 billion in lost agricultural trade.
Here’s the breakdown. If it were ever fully implemented, the Korean free trade agreement would result in approximately $1.8 billion annually. Gains in exports through the Colombian agreement are expected at $815-million. The Panama agreement would bolster U.S. ag exports to more than $195 million.
These trade agreements are crucial for the economic well being of this nation’s farmers and ranchers as well as the economic health of their rural communities and the whole of the U.S. economy.
Make no mistake about it, there is a direct correlation with the beginning of the supply chain on this nation’s farms and ranches and the workers who package and move the livestock, grain, fuel and fiber to foreign consumers.
A decline in U.S. exports will result in a decline in work for those who are part of that food pipeline. Every billion dollars in agricultural exports creates work for approximately 9,000 workers, according to the U.S. Department of Agriculture.
While the United States has dallied with these free trade agreements for years, other nations — our competitors — are pursuing and in some cases have secured their own trade agreements. Case in point is Canada. They have completed negotiations with Colombia and their agreement awaits implementation.
This debate on free trade is no longer just about generating potential export gains but about the loss of existing U.S. exports. This nation and its farmer and rancher producers are loosing billions of dollars to competitors with our stalled agreements.
Here’s an example of what I’m talking about. During the 10-year period from 2000 to 2009, the Chilean wine market share in Korea rose from 2.4-percent to 21.5 percent. During this same time period, the U.S. share fell from 17.1-percent to 10.8-percent.
Here’s another. The U.S. agriculture peak market share with Colombia totaled 46-percent in 2008. Last year it dropped to 21-percent as Argentina took our share of the ag export pie.
Just one more. A recently completed trade deal between Canada and Panama has given our neighbors to the north a competitive edge over us for products such as beef, pork, beans and various processed foods — if the Canadian trade deal goes into effect before the U.S. agreement.
This country’s inability to take action on the trade front has resulted in a loss of market share and economic growth during a period of time when we cannot afford it. The U.S. governments inability to move these free trade agreements forward will continue to benefit our competitors around the world while damaging U.S. agriculture producers and American food-supply workers.
It’s past time for this continuing political posturing and lack of cooperation on both sides of the aisle. Our elected leaders were sent to Washington on behalf of this nation’s people. It’s time for them to lead. It’s time for them to implement free-trade agreements.
John Schlageck is a leading commentator on agriculture and rural Kansas. Born and raised on a diversified farm in northwestern Kansas, his writing reflects a lifetime of experience, knowledge and passion.
Three stalled trade agreements are jeopardizing a vital cog of this country’s economy. The inability of Congress and the Obama administration to compromise on Free Trade Agreements with Colombia, Korea and Panama is costing the United States $3 billion in lost agricultural trade.
Here’s the breakdown. If it were ever fully implemented, the Korean free trade agreement would result in approximately $1.8 billion annually. Gains in exports through the Colombian agreement are expected at $815-million. The Panama agreement would bolster U.S. ag exports to more than $195 million.
These trade agreements are crucial for the economic well being of this nation’s farmers and ranchers as well as the economic health of their rural communities and the whole of the U.S. economy.
Make no mistake about it, there is a direct correlation with the beginning of the supply chain on this nation’s farms and ranches and the workers who package and move the livestock, grain, fuel and fiber to foreign consumers.
A decline in U.S. exports will result in a decline in work for those who are part of that food pipeline. Every billion dollars in agricultural exports creates work for approximately 9,000 workers, according to the U.S. Department of Agriculture.
While the United States has dallied with these free trade agreements for years, other nations — our competitors — are pursuing and in some cases have secured their own trade agreements. Case in point is Canada. They have completed negotiations with Colombia and their agreement awaits implementation.
This debate on free trade is no longer just about generating potential export gains but about the loss of existing U.S. exports. This nation and its farmer and rancher producers are loosing billions of dollars to competitors with our stalled agreements.
Here’s an example of what I’m talking about. During the 10-year period from 2000 to 2009, the Chilean wine market share in Korea rose from 2.4-percent to 21.5 percent. During this same time period, the U.S. share fell from 17.1-percent to 10.8-percent.
Here’s another. The U.S. agriculture peak market share with Colombia totaled 46-percent in 2008. Last year it dropped to 21-percent as Argentina took our share of the ag export pie.
Just one more. A recently completed trade deal between Canada and Panama has given our neighbors to the north a competitive edge over us for products such as beef, pork, beans and various processed foods — if the Canadian trade deal goes into effect before the U.S. agreement.
This country’s inability to take action on the trade front has resulted in a loss of market share and economic growth during a period of time when we cannot afford it. The U.S. governments inability to move these free trade agreements forward will continue to benefit our competitors around the world while damaging U.S. agriculture producers and American food-supply workers.
It’s past time for this continuing political posturing and lack of cooperation on both sides of the aisle. Our elected leaders were sent to Washington on behalf of this nation’s people. It’s time for them to lead. It’s time for them to implement free-trade agreements.
John Schlageck is a leading commentator on agriculture and rural Kansas. Born and raised on a diversified farm in northwestern Kansas, his writing reflects a lifetime of experience, knowledge and passion.
