On October 12, the U.S. Congress passed free trade agreements (FTAs) with South Korea, Panama, and Colombia. Originally negotiated five years ago, the agreements must be signed by President Obama before they go into effect.
The FTA with South Korea will make 95 percent of U.S. consumer and industrial goods duty-free within five years. The agreement also contains measures to advance the export of U.S. cars into South Korea.
The agreement with Panama will make 87 percent of U.S. exports of consumer and industrial products and over half of current agricultural exports to Panama duty-free immediately. Most of the remaining tariffs will be eliminated within 10 to 15 years.
The FTA with Colombia will immediately eliminate tariffs on 80 percent of U.S. exports of consumer and industrial products and more than half of current agricultural exports to Colombia. Virtually all of the remaining tariffs will be phased out within 10 to 15 years.
These new trade agreements have been hailed as ways of boosting U.S. exports and creating jobs in the U.S. Will these new FTAs affect your organization? If so, how?