Trade is absolutely critical to the economic revitalization of Indiana, including the state’s agriculture industry. I strongly support free trade as an effective means to increase opportunities for Indiana agriculture. Therefore, I support the recent free trade agreements secured by U.S. Trade Negotiators with Colombia and Peru.
Exports of farm products boost Indiana’s farm prices and income. Exports support approximately 24,200 jobs both on and off the farm in food processing, storage and transportation. Agricultural exports amounted to $2 billion and made an important contribution to Indiana’s farm cash receipts in 2006. In fact, nearly 30 percent of all output for Indiana’s major commodities, like corn and soybeans, is bound for an international market.<br>
Governor Mitch Daniels and Lt. Governor Becky Skillman have made trade a top priority and have led eight trade missions either fully or partially-focused on agriculture, including visits to Panama and Korea. Recently negotiated free trade agreements with those countries will allow Indiana to build on the business relationships that were founded during our earlier trade missions. <br>
Entering new markets just opened under free trade agreements with countries like Colombia and Peru, will open the door for future Indiana exports.<br>
Free trade agreements provide increased access for Indiana’s agricultural exports by making agricultural trade a two-way street and leveling the playing field for U.S. products to compete. Free trade agreements will dramatically reduce or eliminate duties now imposed on Indiana commodities. For example, the U.S.-Korea Free Trade Agreement provides immediate elimination of duties on more than 60 percent of U.S. exports. <br>
The U.S.-Colombia Trade Promotion Agreement will lift tariffs in Colombia that were as high as 195 percent on some corn products. <br>
The U.S.-Panama Trade Promotion Agreement will lock in place Panama’s current zero-tariff treatment for soybeans and soybean meal. Under the U.S.-Peru Trade Promotion Agreement, Peru will phase out all duties on pork, which are currently as high as 25 percent.<br>
There is no doubt that future growth in Indiana agriculture is heavily contingent upon opening new international markets with free and fair trade. That is why I strongly support the recent free trade agreements with Peru and Colombia and hope adoption will occur quickly.