SAF WEdnesday E-Brief
April 9, 2008 Your weekly industry news and business trends update from SAF
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HEADLINES
Duty-Free Flowers Measure on the Table

Flowers exported to the United States from Colombia may be given permanent duty-free access if Congress approves a controversial trade pact sent by President Bush on Monday.

Under federal law governing implementation of the U.S./Colombia Free Trade Agreement (FTA), Congress now has 90 legislative days to vote for or against the measure.

The president's decision to transmit the legislation to Congress has upset many Democrats who believe he has ignored established protocols. Typically a president sends a trade agreement to Congress only after first getting approval from Congressional leaders. This way, support for the measure is much easier to achieve. Some Democrats say the president's decision jeopardizes prospects for passage of the measure.

Anti-trade Democrats already oppose the pact because they believe the Colombian government has not done enough to reduce violence in the country, especially against trade unionists.

President Bush, however, has praised Colombian President Alvaro Uribe's efforts to curtail violence and protect labor activists. In addition, Bush says the FTA will improve U.S. national security and strengthen our economy.    

Further dampening prospects for approval, Democrats also insist that ratifying the trade pact or even generating further support for it hinges on expanding the trade adjustment assistance (TAA) program. TAA is designed to help workers who lose their jobs because of foreign competition. Democrats say TAA must be implemented before they even consider the FTA.

President Bush has pledged to work with Democrats on the TAA, but is adamant about Congress ratifying the trade pact. Citing benefits of the measure, the president in a press conference on Monday said, "Waiting any longer to send up the legislation would run the risk of Congress adjourning without the agreement even getting voted on."

Colombian flower exports — about 60 percent of flowers sold in the U.S. — currently enjoy duty-free access to U.S. markets under the Andean Trade Preference and Drug Eradication Act (ATPDEA). That act is set to expire on Dec. 31, 2008. If it is not renewed, or if Congress does not approve the U.S./Colombia FTA, U.S. floral importers of record will have to pay duties on Colombian flowers entering this country.


 
--Drew Gruenburg
dgruenburg@safnow.org




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