Trade groups say U.S. falling behind

March 29, 2011

The Washington TImes

Tim Devaney

American farmers are handicapped with an average 16.8 percent tariff there, according to the Colombian Government Trade Bureau. During the last three years, these tariffs have been reduced for other countries like Argentina and Brazil. But, in a period of expansion where Colombia has doubled its agricultural imports, the U.S. market share has been cut from 46 percent to 21 percent.

“There’s no question we’re losing ground,” Mr. Farnsworth said. “We have significant market share that’s being eroded.”

In a March 17 hearing, the U.S. Grains Council offered a glimmer of hope when it told the House Committee on Ways and Means its members might be able to regain lost market share, but only if the measure passed by July 1. Otherwise, they could miss Colombia’s January and February ordering season as the deals are being implemented, according to committee spokesman Jim Billimoria.

He said, however, that the market for a share of the build up of the nation’s infrastructure wouldn’t be so forgiving to U.S. businesses. Right now, Colombia is embarking on massive overhauls for roads, ports, airports, energy fields and industrial plants. But “unlike ag, infrastructure projects have to be won now, or they’re lost for decades.”

The South Korea agreement also is coming to the forefront as it prepares to start another deal with the European Union on July 1, said Tami Overby, vice president of Asia for the U.S. Chamber of Commerce. Because American businesses “compete head-to-head” with European companies in so many different industries, this could be a “game changer,” she added.

“That’s why the pressure is on America,” she said. “The clock is ticking.”

The agreement with Panama will provide a number of opportunities for service companies in the United States, particularly those that cater to the Panama Canal, Mr. Farnsworth said. That could mean ship maintenance, loading and unloading, and fueling.

“Frankly, I think we need to do all of them,” Miss Overby said. “While America has taken a time out on trade, the rest of the world has moved forward. We need to get them all done, and we need to get them all done yesterday.”

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