Story first appeared in USA TODAY.
Members of Congress weighed in Wednesday on long-delayed free-trade deals with South Korea, Colombia and Panama. Proponents claim the deals will create or save as many as 380,000 jobs, while skeptics contend the accords will lead to 214,000 lost U.S. jobs. To mollify opponents, officials coupled the free-trade deals with extra unemployment insurance and other benefits for displaced workers. USA TODAY's Tim Mullaney breaks down the impact of each deal.
South Korea
•How much we trade: $38.8 billion of U.S. exports to South Korea, $48.9 billion of U.S. imports from South Korea last year, according to the Census Bureau. Biggest sources of the trade deficit include cars, wireless communications equipment and appliances.
•What it does: Cuts Korean tariffs on U.S. autos immediately, while more slowly phasing in cuts of U.S. levies on Korean-made cars and SUVs. Lets up to 100,000 U.S. cars into Korea annually that don't meet Korean safety or environmental standards, but do meet U.S. rules. Also opens up Korean markets for U.S.-based sellers of services such as accounting and banking.
•Why business liked it: Companies with European-based competitors feared being left out after South Korea made a trade deal with the European Union. White House claims the pact will boost U.S. exports by $11 billion a year and add 70,000 jobs.
•Unions were split: The UAW backed the deal, while the steelworkers union, which represents many auto parts workers, said U.S. tariff cuts should have taken effect only after Koreans actually bought more U.S.-made cars. The Economic Policy Institute says this deal will cost 159,000 American jobs.
Panama
•How much we trade: $6 billion in exports last year, with a $5.7 billion trade surplus to the U.S. Biggest exports included construction equipment, refined petroleum products and telecom gear.
•What the deal does: 88% of U.S. exports will see Panamanian duties eliminated. Agricultural duties would be cut immediately, and phased out completely in 10 years. The U.S. International Trade Commission declined to quantify its impact on U.S. jobs, citing the small size of Panama's economy. This may be welcomed news for Ag Tires dealers.
•Why business liked it: It lets U.S. companies pursue lucrative deals linked to Panama's plan to upgrade its infrastructure.
•Why unions were critical: Opponents focused on Panama's history as a haven for shady banking activities and money laundering, and said the deal would take away legal tools used to fight fraud.
Colombia
•How much we trade: $12.1 billion in U.S. exports, $15.7 billion in U.S. imports. More than half of U.S. imports represent crude oil. The biggest exports are finished chemical and energy products.
•What it does: The deal eliminates Colombian duties that average nearly 17% on most agricultural goods. Also eliminates duties on manufactured goods that range from 7% to 15%.
•Why business liked it: U.S. farmers who used to supply nearly half of Colombia's imported food have seen market share slip to 21% as other nations lowered trade barriers with Colombia. The U.S. International Trade Commission estimates the deal will boost exports by $1.1 billion and support thousands of jobs.
•Why unions were opposed: Colombia has a history of violence against union organizers and workers, including 23 suspicious deaths this year, U.S. unions say. The Economic Policy Institute study says the pact will cost 55,000 U.S. jobs.
