February 9, 2012

Grassley says trade agreements will create jobs

Iowa Senator Chuck Grassley says the free trade agreements approved Wednesday with Columbia, Panama, and South Korea will help the U.S. economy. Grassley says the National Association of Manufacturers estimates the agreements will create 100,000 jobs, the president says it will create 255,000 jobs.

Whatever the number he says they are good-paying jobs as he says jobs in exports pay about 15% above the national average. Grassley and fellow Republican congressmen Steve King and Tom Latham voted for the agreements. Democrat Senator Tom Harkin and Democrat congressmen Leonard Boswell, Dave Loebsack and Bruce Braley voted against it.

Grassley says agriculture, and especially, Iowa agriculture should benefit from the passage of the trade bills. Grassley says pork producers say the agreements will increase the cost paid by $10 per head and he says the U.S. lost a lot of market share of grain sales to Columbia. He says other countries took the market away from us.

The Democrats in the Iowa delegation say they voted against the bill because it will cause us to lose jobs. Senator Harkin says the loss in jobs outweighs the increases in agricultural trade.

By Denis Morrice, KLEM, LeMars

Iowa Republicans vote yes, Democrats no, on U.S. trade agreements

Iowa’s congressional delegation voted along party lines on the trade agreements with South Korea, Colombia and Panama that passed the U.S. House and Senate Wednesday. Republican Representatives Tom Latham and Steve King vote for the agreements along with Republican Senator Chuck Grassley.

Democrat Congressmen Dave Loebsack, Leonard Boswell and Bruce Braley voted “no”, as did Democrat Senator Tom Harkin. Harkin says all the estimates he has seen say the agreements will increase the trade deficit of America. “What is it we don’t get about our trade deficit,” Harkin asked.

He says the U.S. keeps making deals to “take away manufacturing jobs, increase our trade deficit” and increase the likelihood that we will borrow more money from China in the future. Harkin says the negative impacts of the agreements outweighed any increase in trade.

Harkin says the agreements will cost jobs in America, and he says it was a tough vote because the estimates say the agreements will increase agriculture exports. “And that’s beneficial obviously for the Midwest, but it’s going to decrease our manufacturing jobs in America, and that’s not good, you weigh those,” Harkin said.

Congressman Loebsack issued a statement saying,” at a time when our economy is struggling to recover, Congress should be focusing on creating jobs and promoting recovery, not threatening to ship Iowans’ jobs overseas.” And Boswell said the nation cannot allow trade agreements that only benefit big corporations at the expense of the working class.

“This shaky trade legislation is not a true job-creator,” Boswell said. “The reality is these deals put tens of thousands of jobs on the line during an especially difficult time for our country. Let us not forget the effects of previous trade agreements on our communities – the most vivid example being Newton when thousands of workers lost their jobs after the Maytag plant closure.”

Congressman Latham’s statement on the vote said: “Approval of these free trade agreements will create jobs across our state and open new markets for Iowa products and commodities. This is an important step in the right direction toward putting America back to work.”

Senator Grassley issued a statement that said in part: “Exports have an important part to play in the economic recovery effort. Private sector employers need an international trade agenda that opens new doors to sell U.S. agricultural goods, manufactured products and services. These votes in the Senate are a very important step in the right direction, but they were delayed unnecessarily for years, and the rest of the world is moving ahead without us.”

Congressman King had this to say about the agreements: “The Free Trade Agreements with South Korea, Colombia and Panama will provide a boost to Iowa’s economy by opening overseas markets to Iowa’s goods. “The benefits of increased trade with these countries will be particularly evident in Iowa’s agriculture sector, as these three FTA’s are expected to increase Iowa’s agriculture exports by $162 million a year and to create over 1,400 new agriculture related jobs in the state. I am pleased to support these important trade deals, and I look forward to Iowa receiving the economic benefits their enactment will provide.”

President Obama, a Democrat, supports the agreements.

(This story was updated at 11:33 to include comments from Congressman King)

Grassley says trade agreements are important for state

President Obama is forwarding trade agreements involving three key nations to Congress for approval, a move Iowa Senator Chuck Grassley says is very good news for American farming and manufacturing. Grassley, a Republican, says the White House sent down the agreements on Monday afternoon.

“These three trade agreements will lower or eliminate tariffs on almost all U.S. exports to Columbia, Panama and South Korea,” Grassley says. “They could increase U.S. exports by $13-billion a year, creating tens of thousands of new jobs.” He says the free trade agreements have been held up for several years, dating back to the most recent Bush administration.

“It’s been a big mistake to let these agreements languish,” Grassley says. “That’s well-understood in Iowa which has long been an exporting state in manufacturing, as well as agriculture and insurance and financial services.”

 South Korea is the third-largest corn market and has the potential to be an important market for ethanol by-products. Colombia is importing corn from other countries because of the current import duty, while Panama is one of the fastest-growing economies in Latin America. Grassley says the free trade proceedings shouldn’t end with these three nations.

“Now that we’ve got these agreements up from Columbia, Panama and South Korea, we shouldn’t stop there,” Grassley says. “Trade agreements need to be a priority. The rest of the world is moving forward without us.”

Kevin Ross, a farmer from Minden and president of the Iowa Corn Growers Association, released a statement saying: “The pending free trade agreements with Korea, Colombia, and Panama represent important export market opportunities and with our current economy, this is crucial to our competitive edge.”

The U.S. is the world’s largest corn producer and exporter. In Iowa, exports are the third-largest market for corn, following livestock and ethanol.

Governor talks about Asian trade mission

Governor Terry Branstad says his trade mission in Asia is going exceptionally well. In a conference call this morning from China, Branstad says he and the members of the Iowa delegation just arrived in Beijing after spending several days in Seoul, South Korea. The governor says the Korean business leaders he met with were very receptive to broadening relations in Iowa.

“We have one company that’s already starting to do business in Iowa, another that we’re very encouraged about potentially locating in our state and another that already has an operation in California,” Branstad says. “We think within a year or two, they’ll have another operation in America and hopefully they’ll take a look at Iowa and we had a very productive meeting with them.”

Branstad and the other Iowans met today in the Great Hall of the People in Beijing with China’s Vice President Xi Jinping. Branstad says Jinping will likely become China’s president within a year.

“We have a special relationship with him because he was a county party leader in the Habay province when we established a sister state there,” Branstad says. “He came with the delegation, his first visit to America, he came to Iowa in 1985.” The governor says Jinping reminisced fondly today about his time exploring Iowa, during which he met with Branstad and stayed with a family in Muscatine.

Branstad says Des Moines-based Principal Financial Group hosted a reception earlier today in Beijing that was well-attended. “Principal is already doing business here in China and we are visiting about the possibility of them being able to partner with a Chinese company in order to market their 401-K products here in the Chinese marketplace,” Branstad says.

“This would be a tremendous opportunity for them.” Debi Durham, director of the Iowa Economic Development Authority, says they’re making significant inroads in China to encourage trade and investment in Iowa.

“We’ve never had such a high official meeting with an Iowa delegation before, a meeting with the vice president,” Durham says, “as we begin to talk about the opportunities for bringing some of our expertise in the financial world into China.” Branstad and the other Iowans will be heading to Japan next, where they’ll take part in the 43rd Annual Joint Meeting of the Midwest U.S.-Japan.

The governor will also meet with the governor of Yamanashi Prefecture, Iowa’s Japanese Sister State, and meetings are also planned with officials from several Japanese companies. This is the second Iowa delegation to visit Asia this year. In June, Lieutenant Governor Kim Reynolds, Ag Secretary Bill Northey and some 40 other Iowans visited South Korea and China.

State ag officials say China buys nearly 60% of Iowa’s agricultural exports, including nearly $2-billion worth of soybeans per year.

Lieutenant Governor leads trade delegation to South Korea

Several state government leaders and the captains of Iowa’s key industries are in South Korea, working to strengthen partnerships and boost Iowa exports. In a conference call with Iowa reporters this morning, Lieutenant Governor Kim Reynolds says there are about 40 people in the Iowa delegation in Seoul and she says they’re zipping along with a very busy schedule of meetings and seminars.

“This morning, we started our day bright and early with an embassy breakfast briefing,” Reynolds says. “We were updated from the ministers of political, economic, commercial and agriculture. After that, we left the hotel and went to meet with Ambassador Kathleen Stevens and we had the opportunity to discuss with her the free trade agreement.”

The lieutenant governor says the delegation broke into two groups, to cover more ground, hosting dueling luncheons. “The luncheon that I hosted was the meat industry luncheon and we had about 20-to-25 participants,” Reynolds says. “It really was an opportunity for us, along with the Iowa Beef Association and the Iowa Pork Association, to thank the customers that are located here in South Korea and to have a dialogue about how we can increase trade and to build relationships.”

Bill Northey, Iowa’s Secretary of Agriculture, led the other half of the Iowa delegation. “I took a group to the Ministry of Food, Agriculture, Forestry and Fisheries to meet with Minister Kim over there,” Northey says. “A good discussion, a good back and forth, both questions that they had for our producers but a lot of discussion about what’s going on in the world of agriculture and food in South Korea.”

Northey says much of their talks focused on the pending free trade agreement between our two nations. “We talked as well about some recent issues they’ve had in South Korea that impact Iowa producers,” Northey says. “That includes foot and mouth disease, that certainly every livestock producer in the world fears. We talked about the lessons they learned through all that.” He says the outbreak was so widespread, about one-third of the nation’s entire hog herd of ten-million head had to be destroyed.

To Iowa’s benefit, South Korea boosted its importing of pork from the U.S. as a result. Debi Durham, director of the Iowa Department of Economic Development, is also on the trip and calls the agenda “intense.” Durham says she and her staff are busy pitched all of the advantages Iowa boasts.

“Certainly, elevating international trade and investment is absolutely the right strategy for Iowa and the nation,” Durham says. “It’s an essential component in creating and sustaining jobs. In addition, I was involved directly in all of the trade discussions that were occurring today. As you know, the governor and lieutenant governor have called for an increasing of trade by 20% and the president has also called for double the trade.”

The Iowa delegation is hosting seminars about the benefits of investing in Iowa. Durham says she and her staff are devoting their time to wooing South Korean companies to build in Iowa. They’ve met with three companies, so far. “One is, I’m pleased to say, we’re a finalist in Iowa,” Durham says. “Certainly, the efforts that we made to call on them at their corporate headquarters went over so well, very well received, and we just went over some additional questions they have regarding the site and some incentives.”

Meetings with the other companies were more introductory, she says. The Iowa delegates include officials from the beef, pork, corn and soybean industries, a few state legislators as well as several other business leaders and cultural officials. The group will leave South Korea on Thursday to launch into a similar series of meetings in China. They’ll return to Iowa on June 17th.

Governor announces trade missions to South Korea, China, Taiwan, Japan (audio)

Lieutenant Governor Kim Reynolds.

Governor Branstad will lead a trade mission to South Korea and China in June and Iowa’s lieutenant governor will lead a trade mission to Taiwan and Japan in September.

Lieutenant Governor Kim Reynolds went on a trip to  Taiwan several years ago, as part of a delegation of young American elected officials.

“So this would be a return trip to for me. At that point, so I hadn’t been east of the Mississippi, so I can tell you that that was quite an experience for a gal from Osceola, newly-elected to the county treasurer’s office, but it was a phenomenal experience,” Reynolds says. “We landed the day of the national election.”

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State pork exports hit a record in 2010

Iowa’s pork industry set a record for exports in 2010 and the figures for December have yet to be added to the total.

The Iowa Department of Economic Development reports Iowa companies exported more than one-billion dollars worth of pork products between January and November of last year.

Greg Lear of Spencer is the director of exports for the Iowa Pork Producers Association. He says expanding overseas markets is key to putting more money in pork producers’ pockets. “Everybody needs access to getting more products sold out of the U.S. because I don’t think we’re going to change our per capita consumption of pork in the U.S.,” Lear told Radio Iowa.

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