President Bush’s State of the Union address was by no means Earth shattering. However, one point warrants emphasis. Bush asked Congress to approve a Free Trade Agreement (FTA) with Colombia. He stated that the agreement, whose renewal has stalled for almost a year now, is important for “America’s strategic interests.” Bush hit the nail right on the head. Despite what many on the Hill want you to believe, there is more at stake than the jobs of a fistful of well-buttressed U.S. workers.

First, Colombia is a key partner in U.S. counternarcotic policy. Recent U.S. funding cuts, upon which Colombian anti-drug efforts are heavily – nay, completely dependent, left Bogotá feeling abandoned by Washington. Fears that the “Eagle’s gaze” has shifted away from South America towards Iraq and Afghanistan were only increased by the delays in renewing Colombia’s FTA. The end result is that Colombia’s support, which is absolutely essential for the U.S. supply-side war on drugs, is no longer guaranteed.

The stalled FTA and Colombia’s ensuing uneasiness affects more than counternarcotic efforts. The absence of the U.S. in Colombia’s corner is forcing President Uribe to search elsewhere for support. Slowly, he is turning to Venezuelan President and U.S. adversary, Hugo Chávez. Uribe has already expanded on existing trade ties with Venezuela to forge new energy deals and even (briefly) turned to Chávez for aid in resolving his standoff with the FARC. Chávez has outlined a series of initiative to parallel U.S.-led institutions like the IMF and Free Trade Area of the Americas. A loss of U.S. influence with its largest ally in South America will mean an inherent gain in the influence of Hugo Chávez. Nicholas Burns, U.S. Undersecretary of State, said in October that “if [the FTA] doesn’t pass, someone like Chavez, if not Chávez himself, is undoubtedly make the argument that the United States doesn’t take care of its friends… and we wish not to give that argument to our adversaries in the region.” [1]

The FTA agreement would eliminate steep tariffs on U.S. goods entering Colombia. A 2006 report from the Office of the U.S. Trade Representative illustrated that duties imposed on key U.S. exports of chemicals (which constitute more than a third of U.S. exports to Colombia) would be dropped and imports of remanufactured equipment, such as engines and radiators, would no longer be banned. Colombia, which is in the process of updating its infrastructure throughout the country, would become a key consumer of U.S. equipment, steel and machinery exports, which currently face an average 10% tariff. The Census Bureau reports energy comprises half of Colombian imports to the United States, both in coal and oil. Other imports (coffee, garments, cut flowers) do not represent a significant challenge to U.S. jobs in these sectors, most of which have already been lost to developing countries.

The U.S. Congress should listen to Bush and pass the Colombian FTA post haste. This will require Congress to take a hard look at the future of free trade agreements in general, and consider restoring the fast-track process that expired last summer. Understandably, this is not an attractive proposition in an election year. The not-so-distant impact of inaction greatly outweighs the immediate, though comparatively minimal, impact on the American worker. The United States stands to lose a great deal, in security, in influence, and in trade if the Free Trade Agreement is not passed in a timely fashion.

NOTE:
1. Benedict Mander, “Uribe’s Kisses Intended to Seal Free Trade Deal,” Financial Times, October 24, 2007.