The Senate recently approved an extension of the Trade Adjustment Assistance (TAA) program, which trains American workers affected by global competition.

While the program’s renewal is notable, given that it also streamlines previous changes made to the TAA in 2009 and represents a rare instance of compromise in a sharply divided Congress, its passage is perhaps more important for exporters because it paves the way for action on the nation’s three pending free trade agreements (FTAs), with Panama, South Korea and Colombia. President Barack Obama had considered TAA renewal a condition that had to be met before those FTAs were sent to Congress for approval.

Now that an agreement has been reached, little stands between the agreements and their entrance into force.

“Today’s long-awaited Senate action should clear the path for consideration of our pending trade agreements,” said Rep. Dave Camp (R-MI), chairman of the House Committee on Ways & Means. “The next step is for the president to promptly submit the pending free trade agreements with Colombia, Panama and South Korea, which also enjoy bipartisan, bicameral support, to the House and bring us one step closer to passage.”

While President Obama set TAA passage as a precondition for the FTAs, Republican leaders demanded the opposite, that the FTAs be submitted prior to their approval of the TAA bill. Now that the Senate has approved the TAA extension, the GOP hopes that the President will relent, and submit the FTAs to the House, trusting that TAA approval would follow shortly after their arrival.

“The Senate today will have acted on trust in passing TAA even before we received the agreements,” said Senate Minority Leader Mitch McConnell (R-KY) after the vote. “But the White House has refused to show the same trust in Congressional Republicans who’ve assured them that TAA will move along with the FTAs.”

“I kept my promise that I would allow TAA to move forward in the Senate as long as Republicans had a chance to amend it. It is time for the administration to deliver on theirs. It’s time for the President to send up these long-pending FTAs without delay,” he added.

Stay tuned to NACM’s blog and NACM’s eNews for any future updates on the pending FTAs.

Jacob Barron, CICP, NACM staff writer

Despite growing whispers of concern over asset bubbles and inflation, a member of the of the Federal Reserve Bank of New York has retained an optimistic view regarding the BRICs Nations and their economic prospects.

Matthew Higgins, vice president of the Federal Reserve Bank of New York told NACM there has been a commodities-fueled inflation problem brewing within some of the emerging economies. However, such issues have started to ease somewhat in places like Brazil and India, among others. Higgins, who is the featured speaker at FCIB’s New York International Roundtable event on Sept. 21, noted the situations there and in Brazil, as three of the hottest economies in the world, obviously are worth watching, but there is little reason for businesses involved in global trade to have deep concern or panic at this time.

“All of the emerging economies are navigating a fairly difficult global environment,” said Higgins. “Those examples have been the most dynamic part of the global economy, and most observers think that is going to continue. Even in a rather troubled global economic environment, the projections are for good growth.”

Higgins also weiged in on the ongoing situation with three languishing free-trade agreements involving the United States. He said the agreements -- with Columbia, Panama, and South Korea -- would be helpful to U.S.-based exporters, but "nothing is a panacea. He noted that exporting still accounts for little more than 10% of the economy.

For more information or to register for the FCIB New York International Roundtable event at which Higgins is speaking next week, visit FCIB's webpage at www.fcibglobal.com or by clicking here.

Brian Shappell, NACM staff writer

Tell us if you’ve heard this one before: three long-delayed free trade agreements (FTAs) finally appear ready for Congressional votes this summer. Key Congressional lawmakers from both sides of the aisle and the Obama Administration reported Tuesday that they have forged a deal to put up the FTAs up for House and Senate floor votes. However, a late inclusion from President Barack Obama in the form of a renewed assistance program could threaten the deal’s safe passage.

A push by several Democrats to include an extension of the Trade Adjustment Assistance program, designed to provide aid and unemployment benefits for workers affected by increased foreign competition, apparently was a sticking point for some in getting the FTA’s to a vote. Though many hard-line Republicans are said to oppose this, key GOP figures compromised on the issue. Lawmakers including Senate Finance Committee Ranking Member Orrin Hatch (R-UT) warn that the decision to attach the assistance program onto the FTA vote could jeopardize GOP support despite its longtime interest in passing the trade pacts, especially one with fast-emerging South Korea.

The FTA's are key to Obama's stated goal to double U.S. exporting levels by 2015.

Brian Shappell, NACM staff writer

With small business exporting becoming an increasing important element of the majority of U.S. commerce, attendees at NACM’s 2011 Credit Congress in Nashville flocked by the dozens to the first sessions in a series of five on “Doing Business in ___” series hosted by FCIB.

The first of which, “Doing Business in Canada” drew well in excess of 100 people and became one of the first standing room only, so to speak, sessions of Credit Congress this year. Hubert Sibre, of Davis LLP, described Canadian business terms as extremely varied depending on the province. For example, Alberta is considered very liberal from a pro-debtor standpoint, while Quebec is considered much more conservative on matters of business and credit.

Sibre suggested registering one’s business in every province is almost essential because it greatly improves their position to protect intellectual property in Canadian courts, among other things. It also helps to have a subsidiary based there because bankruptcy judgments made in the United States are unenforceable without a Canadian court officially recognizing it.

A subsequent session on South Korea was led by Kyle Choi, Esq. of Bluestone Law Ltd. Choi spoke the various aspects of why the nation’s stock is rising in the international business community, which includes a highly evolved infrastructure, a wealth of available credit information available on companies there and business-friendly law. Also helpful is its prestigious business quality rating by the World Bank and, according to Choi, that its free-trade agreements with the United States and the European Union will increase competitive fairness by reducing the gap in tariffs, estimated by some at 10%. Also, he contends it will force South Korean companies to produce better products, components and services across the board.

But there are many cultural differences and barriers that need to be taken into account, such as a desire for officials at companies to speak directly with employees on their level with your company (don't pawn her off on the secretary) and the need for formality even in e-mail correspondence.

(Note: Subsequent sessions on Doing Business in Chile, China and Brazil had not been completed at the time of this posting. More coverage is coming to NACM’s blog, eNews and the July/August edition of Business Credit Magazine in the coming days and weeks).

Brian Shappell, NACM staff writer, can be reached brians@nacm.org

Following a meeting of leaders at the White House April 7, the long-delayed free trade agreement (FTA) between the United State and Columbia looks to be on the way to completion, much like an agreement worked out with South Korea before it. The president believes it will be a boon for small business exporting efforts.

President Barack Obama and Columbian President Juan Manuel Santos reached to an agreement on labor improvements, such as rights of those who unionize and labor workers’ safety in once crime-plagued Columbia, long seen as a significant stumbling block to completing the FTA. Perhaps buoyed by China’s attempts to build trade inroads with the nation, it’s now the second of three trade agreements started during the Bush Administration. The framework of the Columbian FTA was forged in 2006. 

“The United States has an enormous interest in the development of Latin America and an enormous interest in progress in Colombia,” said Obama. “President Santos I think is at the forefront of a progressive and thoughtful agenda within Colombia. He’s obviously initiating a whole range of reforms…This [FTA] represents a potential $1 billion of exports, and it could mean thousands of jobs for workers here in the United States. And so I believe that we can structure a trade agreement that is a win-win for both our countries, and I’m looking forward to working with President Santos to ensure that both countries benefit. And this will help me meet my goal of making sure the United States has doubled exports over the coming years and that we’re as competitive as we can be in a global marketplace in the 21st century.”

(Note: To view the White House-approved details of the now imminent FTA, see the fact sheets by clicking the highlighted link).

Brian Shappell, NACM staff writer

As a long languishing/unfinished free trade agreement (FTA) between the United States and Colombia continued to draw attention from trade advocates, China has unveiled vague plans to build a rail link through the same nation. It is seen as a direct attempt to compete with the Panama Canal on the world trade states and would be a slap to the United States by grabbing a larger piece of the South American Market. Colombia already conducts more trade with China than any other nation than the U.S., and the Asian economic powerhouse already has substantial presence in emerging economic power Brazil, the pearl of its continent.

The news has given pro-trade advocates and lawmakers, largely Republican, another weapon with which to proverbial bash President Barack Obama and his White House that, despite various recent attempts to extend an olive branch, have been vilified by the American business community.

During last week's FCIB New York International Round Table event, panelist Josh Green, CEO of Panjiva, said he could see the Colombia FTA becoming a casualty of partisan Capitol Hill fighting in the coming months.

Brian Shappell, NACM staff writer

President Barack Obama delivered the annual State of the Union address with a bit less of a partisan, pep-rally atmosphere than has been present at the speech in recent years, and it certainly carried far from celebratory tone over achievements of the last year. Much of the speech read like jet another open love letter from the president to the business community, especially smaller operations, that White House is serious about improving conditions for U.S. industry. Though much of the speech revolved around looking forward, "doing better" and "reinventing ourselves, Obama quickly and decisively pointed out ways the administration was willing to extend the olive branch to businesses. Key among them was restating the plan unveiled in January to eliminate unnecessary regulatory overlap, such as 12 different agencies having a hand in certain business mandates or, in a somewhat joking aside, that two departments are responsible for salmon, pending on what part of the production process the industry is in. Additionally, Obama shined a light on an issue dear to the GOP: trade. He made no less than four references in the speech to South Korea, with whom the United States just signed a new free trade agreement. He also strongly reaffirmed the plan to step up exporting activity not just in the long-term, but right now. The president also all but promised a huge push to amend last year's health care legislation to remove 1099 provisions that would lead to a heap of unnecessary, unwanted paperwork by U.S. businesses. Brian Shappell, NACM staff writer