Produce locally, sell globally

Oct 12, 2011 Issues: Economy and Jobs, Foreign Affairs

Today, Congressman Joe Heck (NV-3) made the following statement regarding his vote on trade agreements with South Korea, Columbia and Panama.

“Nevada businesses will directly benefit from these trade agreements. For example, Thunder Power in Las Vegas will no longer pay an 8 percent tariff on the batteries it exports to Korea. Additionally, these agreements will add to the more than 18,000 jobs already supported by products made in Nevada and sold around the world. We need to produce locally, but sell globally.”

BACKGROUND:

Nevada has a strong, growing export industry:

  • Nevada Jobs Directly Supported by Exports: 18,142
  • Nevada CD-3 Jobs Directly Supported by Exports: 8,338
  • Nevada exported nearly $6 billion in merchandise in 2010
  • Nevada exports have increased 450 percent, compared to the US average of 85 percent, over the last 10 years (Joint Economic Committee)

 

The agreement levels the playing field for U.S. exports versus imports from South Korea:

  • 80% of South Korea’s tariff lines would be zero immediately upon full implementation
  • 92% of South Korea’s tariff lines would be zero within five years and virtually all would be zero within ten years
  • The independent, nonpartisan U.S. International Trade Commission (ITC) estimates that by addressing this unfair tariff asymmetry, full implementation of the agreement would increase U.S. exports to South Korea by nearly 30% more than imports from South Korea would increase

 

The agreement levels the playing field for U.S. exports versus imports from Colombia:

  • The agreement will not measurably increase U.S. imports because most imports from Colombia are already duty-free, though Colombia’s duty-free treatment has been interrupted since February 13, when the Andean Trade Preference Act (ATPA) expired
  • More than 99 percent of total Colombian exports to the United States are already duty-free (measured by tariff line)
  • More than 89 percent of Colombian agriculture exports to the United States are already duty-free (measured by tariff line)
  • The average tariff paid by imports from Colombia in 2009 was less than one percent
  • In contrast, the average tariff paid by U.S. exports to Colombia was 11.2 percent

 

The agreement levels the playing field for U.S. exports versus imports from Panama:

  • Over 87 percent of U.S. exports of consumer and industrial products to Panama will become duty-free immediately, with remaining tariffs phased out over ten years
  • The agreement will immediately cut by more than half the average 8 percent tariff faced by U.S. exporters