We were pleased to see Colorado Sen. Mark Udall say last week he was “inclined” to support a U.S.-South Korea free-trade deal. We would have been happier if he’d pledged an enthusiastic vote on behalf of the deal, but free trade these days is a tricky issue for Democrats — and for some Republicans — so we’ll interpret his statement as a positive signal and leave it at that.
It would be shame, indeed, if any members of Colorado’s congressional delegation ended up voting against the accord, which the Korean ambassador, Han Duk-Soo, told this newspaper’s editorial board last week would probably be sent to Congress shortly for ratification. After all, the deal would directly benefit a variety of Colorado industries and agricultural interests, including wheat and beef producers, and thus boost jobs and incomes.
In the case of beef, for example, Korea’s tariff of 40 percent would be dismantled over a 15-year period.
Some imported goods would obviously cost less, too — which is a good thing, not the curse that some free-trade opponents portray it as. When a nation lowers its tariffs, it’s akin to giving its citizens a tax cut.
In a broader sense, support for the free-trade deal by Colorado’s delegation would also signal that our elected leaders understand that the way out of this nation’s current travails is not to retreat to protectionist rhetoric and policies that will only crimp economic growth in the long term.
Worries over this nation’s trade deficit with China may have some merit (although in our view they are mostly overblown), but free trade in general remains one of this nation’s great engines of growth and prosperity. And South Korea, despite its small size, happens to be the 15th- largest economy in the world and this country’s seventh-largest trading partner.
The Obama administration, which took office somewhat skeptical of the previous administration’s promotion of bilateral free-trade pacts, is now, to its credit, pushing the accord with South Korea. It estimates U.S. exports could increase by $10 billion or so if it is approved — and generate more than 6,000 jobs in Colorado alone. Duk-Soo told us that figure could be quite conservative.
Still, congressional approval is hardly a slam dunk given continuing concern over high unemployment and the opposition of the AFL-CIO, the nation’s largest labor organization. Fortunately, U.S. negotiators were able to address the concerns of the United Auto Workers and that union supports the pact after initially opposing it.
With the rapid rise of China, U.S. influence in East Asia has been waning. Stronger economic ties and a boost in trade should help to arrest that trend.
A free-trade agreement with Korea has been on hold for far too long, despite a lack of compelling arguments to counter it. We hope Duk-Soo’s optimism is warranted and that Congress will finally get down to business on the deal — and pass it.
