2008 Woodie Awards
Free trade expansion provides economic benefits
Jonathan Gair
Issue date: 11/13/07 Section: OpEd Page
The recent passage of the Peru Free Trade Agreement in the House of Representatives, coupled with the pending South Korean Free Trade Agreement, will begin providing the industries of the United States with a tangible economic benefit that emphasizes a new and symbolic link between the U.S. and nations that are continuing to develop vibrant and stable economies. Regardless of the size of the economic gain, the fact that the U.S. will still be in a trade deficit with Peru and the variety of criticisms concerning the willingness of Congressional Democrats to promote the agreement, these linkages are crucial toward sustaining U.S. influence around the world while supporting important markets.
U.S. Trade Representative Susan Schwab has outlined expanding the scope of commercial, agricultural and industrial goods that U.S. businesses can export duty-free to Peru that will most benefit exporters and help Peru evolve beyond developing nation status. Most importantly, complete passage and ratification of the free trade agreement would allow for a widened sale of pharmaceuticals, with the threat of yellow fever looming after a 2001 outbreak and Rubella infection numbers still running high; electronics, allowing telecommunication links to improve and computer usage to increase; and capital electrical goods, allowing the U.S. to export new generators and other distribution equipment to streamline the Peruvian energy infrastructure. The free trade agreement's ability to expand these exports will allow the U.S. to help shape the way that Peru handles its new position in the world economy-over the past four years there has been a strong 4 percent GDP growth rate, a stabilizing monetary exchange rate, and the presence of low inflation.
Even though the agreement will have to still pass the Senate, and then be signed into law by President George W. Bush, the agreement is to sail through acceptance, as there is virtually a lack of private sector opposition to the widening of free trade in this area. Furthermore, this agreement should be able to help stimulate more pressing macroeconomic factors that are plaguing Peru's economy-underemployment and poverty. With there expected to be no noticeable loss in the revenue that Peru gains from exports, local industries will be able to expand while being able to more cheaply buy these varying products from the U.S. The increased technology will be able to help promote renewed employment demands, in conjunction with a host of local retailers and businesses that would see their revenues grow based off cheaper retail goods being imported.
U.S. Trade Representative Susan Schwab has outlined expanding the scope of commercial, agricultural and industrial goods that U.S. businesses can export duty-free to Peru that will most benefit exporters and help Peru evolve beyond developing nation status. Most importantly, complete passage and ratification of the free trade agreement would allow for a widened sale of pharmaceuticals, with the threat of yellow fever looming after a 2001 outbreak and Rubella infection numbers still running high; electronics, allowing telecommunication links to improve and computer usage to increase; and capital electrical goods, allowing the U.S. to export new generators and other distribution equipment to streamline the Peruvian energy infrastructure. The free trade agreement's ability to expand these exports will allow the U.S. to help shape the way that Peru handles its new position in the world economy-over the past four years there has been a strong 4 percent GDP growth rate, a stabilizing monetary exchange rate, and the presence of low inflation.
Even though the agreement will have to still pass the Senate, and then be signed into law by President George W. Bush, the agreement is to sail through acceptance, as there is virtually a lack of private sector opposition to the widening of free trade in this area. Furthermore, this agreement should be able to help stimulate more pressing macroeconomic factors that are plaguing Peru's economy-underemployment and poverty. With there expected to be no noticeable loss in the revenue that Peru gains from exports, local industries will be able to expand while being able to more cheaply buy these varying products from the U.S. The increased technology will be able to help promote renewed employment demands, in conjunction with a host of local retailers and businesses that would see their revenues grow based off cheaper retail goods being imported.
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