by Rick Scott, Governor of Florida
While lawmakers in Washington have avoided making difficult choices, we in Florida have remained focused on solving our state’s economic challenges—cutting state spending by reforming Medicaid and public pensions and passing a balanced budget that includes tax cuts, not increases, for Florida’s families and businesses. To continue building on the work we have started, I offer Washington a solution that will create jobs and opportunities immediately without spending billions more in tax dollars: the ratification of two previously negotiated free trade agreements with Colombia and Panama.
Since these agreements were signed over four years ago, U.S. companies, including many in Florida, have paid more than $5 billion in tariffs, most of which would not have been levied if the agreements had been approved. However, ratification of these agreements would mean much more than the elimination of duties.
Trade agreements with Panama and Colombia would allow American companies to benefit from significantly expanded access for service providers and in government procurement, strengthened intellectual property rights, and added transparency in dispute resolution. And, because of our unique economic relationship with these two countries, Florida stands to benefit more than any other state from their approval.
The opportunity for job growth in our state and throughout the United States from the ratification of these agreements simply cannot be ignored.
Both Colombia and Panama have worked to open their economies to the world by attracting investment and making their industries more competitive around the globe. Their work has paid off; Columbia’s gross domestic product has grown five percent annually in recent years, and Panama’s is expected to grow by four percent this year. This type of rapid growth presents exciting opportunities for job growth here in Florida.
The Port of Miami’s deep dredge project will be underway soon and will ready our state for the larger “New Panamax” ships that will come through the Panama Canal following its expansion in 2014. This project, along with the approval of the trade agreements, will make Florida crucial in expanding existing American partnerships in Panama. Consider these points:
• Florida origin exports to Panama surpassed $1.25 billion in 2010
• According to Enterprise Florida, Inc., ratification of the agreements would increase Florida exports of products and services by at least $160 million annually
• Ratification would also mean the elimination of duties for 88 percent of U.S. consumer and industrial projects in Panama, with 100 percent eliminated within 10 years (15 years for some agricultural products)
Further, the United States is already Colombia’s largest merchandise trading partner, representing around one-third of Colombia’s exports and nearly one-third of its imports. Our two-way trade relationship, nearly $7.6 billion in economic activity, grew by 21.1 percent in 2010 and has increased by an additional 21 percent through April 2011. With nearly half of all U.S.-made high-tech goods that are exported to Colombia originating in Florida, our state is well positioned as the main gateway for commercial ties between our two nations. Ratification of the Colombia agreement with would mean greatly expanded opportunities for growth.
• In 2010, Colombia became Florida’s number two trading partner in the world, trailing only Brazil, with Florida origin exports surpassing $2.5 billion
• According to Enterprise Florida, Inc., ratification of the agreements would increase Florida exports of products and services by at least $532 million and create 6,400 jobs in our state
• Ratification would also mean the elimination of duties on 80 percent of U.S. exports in the first year and on 100 percent within 10 years
Additionally, given that the United States is already the primary provider of knowledge-based, transportation and financial services in both Colombia and Panama, U.S. service providers, especially those in Florida, will be well positioned to take on opportunities to expand immediately.
The ratification of the free trade agreements with Colombia and Panama are key to the immediate creation of jobs in Florida, and we simply cannot afford to miss out on these opportunities any longer. I intend to continue to aggressively push the Obama Administration and Congress to support and approve these agreements, and I hope you will join me in working to support these needed job opportunities for our state.
