A Bailout for the Economy, Not Just the Automakers

Brace yourself, because this is a revolutionary concept: there are ways to stimulate the economy that don't soak taxpayers for hundreds of billions of dollars. You wouldn't know it from the current debate over billion-dollar bailouts and exotic spending packages, but sometimes providing economic "stimulus" is a simple matter of removing the obstacles that prevent American companies from competing, turning a profit and creating jobs. One such measure, the Colombian Free Trade Agreement has been awaiting Congressional action for nearly a year. When lawmakers are working this week to spend billions more taxpayer dollars on unproven stimulus measures, we should demand that they also move forward with this proven, zero-cost measure to help American companies create real jobs. It seems obvious to suggest that Congress use every tool at its disposal to address the economic crisis, but that is precisely what the newly emboldened unions are trying to prevent, even as they ask government to provide an unprecedented taxpayer-funded assistance package. The unions are actively fighting a common-sense effort to include the Colombia FTA as part of the larger bailout/economic stimulus package. President-elect Obama premised his campaign on his willingness to take on entrenched Washington interests. There is no better place to start than with the Colombia Trade Promotion Agreement. On the merits, this agreement is a slam-dunk. It would open up new markets for American goods without costing a single U.S. job. This is the time for the President-elect to signal that he will favor the country over a narrow constituency, no matter how powerful that constituency may be. At times like these, it's important for lawmakers to ask themselves why they're bailing out the automakers in the first place. This bailout isn't about helping one struggling sector of the economy, it's about making sure that the entire economy stays afloat and continues to support jobs for millions of Americans. For unions to ask American taxpayers to bail them out but at the same time block a bipartisan-supported bill that would help other sectors of the economy is simply unconscionable. Now is not the time for individual interest groups to feather their nests. Congress needs to put together an approach that works for the nation as a whole. By way of background, the Colombia FTA would remove tariffs on U.S. goods being sold in Colombia, immediately opening a vibrant and growing new market to U.S. manufacturers. The deal was the subject of years of negotiations, contains landmark environmental and labor provisions, and would strengthen the U.S. relationship with a key ally. With everything going for it, it's little wonder that the Colombia FTA enjoyed broad bipartisan support, right up until the point that it got turned into a political football for the unions and their supporters during the election season. The European Union is negotiating a free trade agreement with Colombia. Canada is doing the same. Meanwhile, U.S. companies have paid $1.4 billion in tariffs as they waited for the Colombia FTA to be ratified. And that $1.4 billion in lost revenue is just the tip of the iceberg. According to the U.S. Census Bureau, more than 311,000 U.S. companies export goods to international buyers. Of those companies, 82 percent are small and medium-sized businesses with fewer than 500 employees. Since it seems unlikely that Congress will be bailing out hundreds of thousands of struggling, lobbyist-deprived small businesses anytime soon, the best thing lawmakers can do is ensure that these companies have access to new markets where they can sell their products. The truth is, nobody knows whether these multibillion-dollar government giveaways will work. We're all hopeful that they stabilize our struggling economy, but they are unprecedented and untested. What we do know is that when America trades, the economy improves, and when we shut our borders, the economy founders and more people lose their jobs. Congress knows it too, and the time has come for lawmakers to drop the political games and do what's right for the economy and the country. The current administration and many in Congress have already signaled that they want to see the Colombia FTA passed as part of any bailout deal for the automakers. Indeed, agreeing to Colombia may be just the sweetener supporters need to garner approval for the behemoth bailout package. Hopefully all this horse-trading results in something that's good for all Americans, not just those living in Detroit. Gary Shapiro is the President & CEO of the Consumer Electronics Association.