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Open Mike: Free Trade Agreements Could Help Open Foreign Markets for Local Companies PDF Print E-mail
Free Trade Agreements Could Help Open Foreign Markets for Local Companies
Small business owners need to communicate with Congress to bring down barriers

By Frederick Baehner

      It was one of those rare perfect days in Washington, D.C.—cool, dry and sunny. We passed through security at the southeast gate of the White House to the South Lawn. As the Marine Band struck up “Hail to the Chief,” President Bush stepped out of the West Wing and up to a podium with the Lincoln Memorial in the distant background.

      Surrounding the president were exported goods; many coming from the Heartland, including a Harley-Davidson motorcycle, grains, vegetables and other products.

      My wife and I were invited there to hear the president address world trade and the issues surrounding free trade agreements.

      In his speech on world trade, Bush took aim at a Democrat-led blockade of the Colombian Free Trade Agreement, blaming the House Speaker, Nancy Pelosi, for not allowing the legislation to come to a vote in the House.

      He spoke before a gathering of international trade professionals, foreign diplomats, journalists and cabinet members.

      He pointed out that the Colombian FTA, in particular, has significant national security overtones, as the United States attempts to support the administration of Colombian President Alvaro Uribe in its battle over drug traffickers in that country.

      As we know, one of the purposes of trade agreements is to reduce tariffs, making our products less expensive and more desirable in other countries. The Harley would cost several thousand less for Colombians, and help keep workers here employed—with perhaps more hired.

      “Trade is in the interests of small business owners and farmers and ranchers, pure and simple,” Bush reminded listeners.

      Two other free trade agreements cited for Congressional action are the Panama and South Korea agreements. 

      Aside from trade rhetoric, how important are some of these trade agreements to fostering increased trade between the United States and other countries?

      One small Kansas City area business exporter I spoke with told me, “They (trade agreements) are often a pain in the butt because of the paperwork involved.”

      One reason given is that product codes from different countries don’t always match up, which requires extra hours of investigation to complete the forms.

      Is there an easier way to get that export contract than securing a free trade agreement? Simply ask your marketing representative or distributor in that country to go and make the sale. If the product is right for the market, trade has a way of working itself out.

      For other small companies with ties to foreign government agencies, FTAs become more important to implementing trade. In this time when many countries are looking to the European Union for trade and monetary leadership, it is important for small Kansas City area businesses to support increased free trade agreements, as with Colombia, Panama and South Korea.

      If you are a small business owner, contact your Congressional representative to express your own viewpoint on these FTAs. And while you’re at it, tell him or her to grant fast track authority so that whoever the president may be, he can implement FTAs more quickly. It could mean more sales for your company and more jobs for our local economy.

Frederick Baehner is the founder and president of InterMark3. You can reach him at (913)248-7770 or .
 

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