Monday, April 14, 2008

More Democratic Obstruction

Congress has closed the door to South American markets by putting aside the renewal of the Free Trade Pact with Colombia. Speaker Pelosi says it may be acted on later but she has, in effect, rejected not only Colombia but also NAFTA, an international agreement on free trade that has benefitted the economy for over a decade. Pelosi and other Congressional Democrats cater to organized labor and any others who are against Free Trade..
Tabling the Free Trade Pact with Colombia will harm workers - even the workers in Organized labor. Acting now on the Pact would allow American exports in to Colombia for no fees. Without the Free Trade Pact, American manufacturing is weakened and jobs are at risk.
Among the American products used in Colombia is the heavy equipment manufactured here and exported to Colombia. With the agreement nullified the fees are imposed and equipment costs more for Colombia. Other countries manufacture the needed equipment. If the costs are cheaper then where will Colombia go for the equipment? Farmers are caught in Pelosi's trap because farm products and beef are exported to Colombia. Having this market for American industrial and agricultural products has helped the economy and given employment to workers - even Organized labor.
Colombian products have been imported by America under the Free Trade Pact. Without the agreement Colombian products will cost more here. Americans will buy anything cheaper and there goes Colombia's market and economy.
American workers - not Congress - are the losers in Pelosi's maneuvers.
Another problem can then develop for all of us if Colombia, and other struggling economies, are denied an American market because of high import fees and higher costs.
Some backward countries around the world, denied a market in America if NAFTA is rejected, may then turn to or even expand production of illegal drugs. An extensive network can move illegal drugs in to America. Producing countries receive dollars for survival, pay no fees to enter American, and drugs flood in to our country.
Protectionist politics are equal opportunity; all Americans are penalized.

(Information comes from daily news and is my understanding of the issue.)

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