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Not the first time for the WSJ about the FTA

This is not the first time the WSJ has printed a totally ridiculous article in support of the FTA with Colombia. On March 10, page A14 they printed one basically stating that congress members against the FTA were helpers and supporters of Venezuelan President Chavez. The body of the article never really presented appropriate support for the conclusion.

The FTA with Colombia in regards to what is good for the American worker and the American economy has nothing to do with Chavez or the FARC. We can compare this FTA with the one with Viet Nam. While indeed America increased imports over $1 billion to the country, Viet Nam increased exports $10 billion to the USA creating a significantly large increase in the trade deficit. In addition many US jobs went to that country.

Colombia has approximately 55% of the population living below the poverty level. Minimum wage is $249 a month. Despite a recent decrease, the country still leads the world in deaths of union members. The Colombian government seems to have no desire to help the workers. Most of the murders of union members have been attributed to the government-linked paramilitary. There is less than a 10% arrest rate for murders of union members. Recent negotiations between business and union about increase in the minimum wage came to a stall, the government decided the increase would be only 1/10 of the difference between the two groups and an amount that got eaten up by inflation in the first two months. Another problem is massive corruption within the Colombian government as noted in the last two year’s US State Department reports on human rights in Colombia. It is that corruption that keeps many labor laws from being enforced.

What is needed for a fair FTA is a country with a viable market for American goods. With the current conditions in Colombia, that market does not exist and there is a good chance that more American jobs will go there and the American economy will be hurt by a greater trade deficit. Owens Illinois has already closed their Godfrey plants putting many workers of a job while moving operations to Colombia. Waiting until Colombia shows significant progress to being a fair trading partner for the USA has nothing to do with the FARC, Chavez or if Colombia is a friend of the USA. It is only good business sense and one would believe that the Wall Street Journal could understand that. But the paper seems to be more involved now in playing politics.


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