After weeks of intense negotiations, the US and Colombia have reached a deal on a free trade pact that the Obama administration says is vital to the president's economic agenda. A senior administration official said the agreement came together after the Colombians agreed to offer greater protections for workers and union leaders.
The final agreement will boost US exports to Colombia by $1 billion per year and could support thousands of American jobs. The deal has bipartisan support in Congress, which must approve the agreement before it can be implemented. Republican lawmakers have used the pact as a political bargaining chip, threatening to block the confirmation of a new commerce secretary and hold up final passage of another deal with South Korea if the administration did not seal a deal with Colombia, as well as another pending agreement with Panama.
Finalising the Colombia deal could increase the pressure on the Panamanian government to address outstanding issues that remain on that deal, the official said, speaking on the condition of anonymity because the deal had not been formally announced. Under the agreement with Colombia, 80 percent of US exports of consumer and industrial products to Colombia will become duty-free, with the remaining tariffs phased out over the next 10 years.
More than half of US agriculture exports to Colombia would also become duty-free, with almost all tariffs eliminated within 15 years. News of the deal won praise from the business community. Tom Donohue, president of the US Chamber of Commerce, applauded President Barack Obama and Colombian President Juan Manuel Santos for their ``courage and pragmatism' in striking the accord.
"This proves the United States can still lead on trade," Donohue said. "The chamber will work closely with the White House and Congress to secure approval of the three pending free trade agreements in the weeks ahead." Santos is expected to meet with Obama in Washington Thursday to discuss the deal.
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