Our View: Trade deals should be approved

In California's bleak economic picture, one of the few bright spots is the growth in exports.

That's a compelling reason to support the free trade deals that President Barack Obama finally submitted to Congress on Monday.

The three pacts — with South Korea, Colombia and Panama — would lift tariffs and ease other barriers, leading to lower prices for U.S. goods and services in those countries and vice versa. The deals could create thousands of jobs; the Obama administration estimates that they would increase U.S. exports by about $12 billion a year, or 1 percent.

California would be among the biggest beneficiaries, which is why business groups across the state are strongly supporting the deals.

In a letter Tuesday to the state's congressional delegation urging passage, 24 California agricultural groups said that farm exports would grow by about $239 million a year to the three countries combined.

Those who grow almonds, pistachios and citrus fruits in the Central Valley would have more customers. California's wine industry would no longer face a 15 percent tariff in South Korea. Also, the state's entertainment industry would get stronger safeguards for intellectual property. Electronics and other manufacturers would be helped.

Overall, the state shipped $143 billion worth of merchandise last year, up from $120 billion in 2009.

South Korea ranks as California's fifth largest export market, at $8 billion last year. Colombia and Panama are smaller markets, but they have potential for growth. In 2010, California's exports totaled about $409 million to Colombia, ranking it 34th, and $252 million to Panama, ranking it 42nd.

Under the special rules for trade deals, Congress has 90 days, counting from Monday, to vote them up or down. It cannot change the terms of the agreements.

It will not be a slam dunk for these pacts to win approval.

Obama faces strong opposition from some fellow Democrats, who blocked approval after negotiators first signed the deals in 2006 and 2007. Along with their union allies, some Democrats are understandably concerned that the deals could mean job losses at home and don't offer sufficient protections for workers and the environment abroad.

The Obama administration has renegotiated some provisions to address labor objections. One reason the White House took so long to formally seek approval again were the painstaking negotiations with Republicans to expand benefits for displaced workers. That program — which includes training, moving assistance and tax credits to help pay health insurance — helped workers at 227 California companies last year in places including Folsom, Fresno and Lodi.

Senators Barbara Boxer and Dianne Feinstein, who haven't declared how they will vote on the deals, need to lead the charge for them. With the president counting on GOP votes, this will also be a test of whether Obama and Republican leaders can cooperate on anything.

The trade pacts have been improved. They have been on the back burner long enough. It's time to act.

What do you think? If you want to comment on this editorial click on "Send a letter to the Sun-Star."