Free Trade Agreements From White House Poised for Congressional Approval

Removal of Tariffs and New International Trade Could Create Revenue and Jobs

by Adam Hilliard on October 4, 2011

Not many bills have been passed in Washington in 2011 unless the immediate threat of a government shutdown forced a few votes to switch. This week, however, the White House has sent the details of international trade agreements to the Senate and House of Representatives, which are likely to create new avenues and profits for American businesses. The free-trade agreements with South Korea, Panama and Colombia have been in the works for years, but recent assurances from House Republicans have created an atmosphere amiable to their passage.

As one of President Obama’s key economic plans, the FTAs could create an added $13 billion in exports. For states which rely on international trade for much of their revenue, California in particular, the new revenue will be helpful in solving nagging budgetary dilemmas.

Other states, like Michigan, will find new profits as their local industries find more open markets. Detroit’s auto industry is expected to gain ground in the South Korean market, long dominated by homegrown automakers Hyundai and Kia, as tariffs which often made American cars into luxury items, are eased.

Following the long summer of brinkmanship in creating bipartisan fiscal policy, approval ratings for Congress have sunk even lower than those of the president. Seeking to find something to share common ground on, House Republicans have been quick to voice their support of the agreements. “Today we have overcome a crucial hurdle to helping put Americans back to work,” said John Boehner, the Speaker of the House, “Now that all three agreements have been transmitted, they will be a top priority for the House.”

The South Korean FTA will also open up a country which had previously taxed or outright banned American beef. While many protesters in the country argued that allowing the influx of foreign beef will cause significant to the small local beef industry, for America it will create new paths into an increasingly beef-rich Korean diet.

Of course, the agreements work both ways, and Americans can expect to see a strengthened presence stateside of some of the best-known South Korean brands, like Samsung and LG, as the high-tech electronics companies face fewer impediments to being a market force.

Just because the agreements are likely to pass does not mean that they do not have their share of critics. Mainly labor unions and Democrats have voiced concerns that the pacts may help businesses, but not necessarily American workers as they will create new competitors for jobs.

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