Free Trade Agreements

On Wednesday October 12, 2011, Congress Republicans and Democrats passed three free trade agreements with bipartisan consensus.  South Korea, Colombia and Panama now offer the U.S. the hope for more economic growth as liberalized trade policies eliminate tariffs, barriers and other policies whose aims are to protect domestic manufacturers.

Interestingly enough, and at no surprise of course, controversy was amidst the passage of these three deals.  Concerns over the treatment of unions in the country of Colombia were raised, yet it passed 262 to 167 in the House and 66to 33.  Colombian goods will now be cheaper in the United States. 

“Labor, human rights and several consumer groups haveopposed the agreements… Supporters of the agreements note that they werereshaped under the Obama administration to address some concerns, withprovisions added dealing with auto tariffs in South Korea, labor rightsguarantees from Colombia and assurances about tax transparency in Panama.”

Now, I’m not an expert in the Free Trade Agreements signed, nor have I read them, but they warrant much attention.  Yes, liberalized trade policies may lead to economic growth, but at what costs? A huge concern is over the possible loss of thousands of American jobs, but what about the treatment of the Colombian workers?  Will they remain working under the same conditions? What about their income, will that change?  Ultimately, how will these Free Trade Agreements affect their daily lives?

In moments like these, I may sound extremely cynical but the truth is that it’s better than being naïve.  Of course, the North American Free Trade Agreement has not gone a single day without criticism.  Corporate interests outweigh everything else and at the end of the day, self-interest wins.  Everyone wishes to maximize self-interest as they rationalize personal utility. 

So what of Colombia, Panama and South Korea? I suppose only time will let us know the effects of these new policies.  ‘Till then, let’s see where globalization decides to make its presence at next.