The President submitted the pending free trade agreements with South Korea, Colombia, and Panama to Congress on October 3, 2011. These agreements are essential for our economic and national security. Now more than ever, America's ability to create jobs at home depends on our ability to export goods and services to the world. Today, exports support nearly 10 million American jobs, and they are well paying jobs. Americans whose jobs depend on trade earn 13 to 18 percent more than the national average.
Of the three trade agreements, the one with Korea is by far the largest. The U.S.-Korea trade agreement will increase our economic output by more than our last nine free trade agreements combined. It also represents a new, cutting-edge trade deal that raises the standard for fair competition as it opens new markets. The Agreement will eliminate tariffs on 95 percent of U.S. consumer and industrial exports within five years, and ensures that almost two-thirds of current U.S. agricultural exports will enter Korea duty-free immediately. Its tariff reductions alone could increase annual exports of American goods by more than $10 billion, and U.S exports expected under the Agreement will support more than 70,000 American jobs.
The U.S.-Korea Agreement contains state of the art provisions to help protect and enforce intellectual property rights, reduce red tape, and eliminate regulatory barriers to U.S. exports. The Agreement also includes the highest standards for protecting labor rights, carrying out environmental agreements, and ensuring that key domestic labor and environmental laws are enforced. This agreement will create a level playing field for American companies.
The Colombia-U.S. Free Trade Agreement will allow our businesses to sell goods in Colombia duty-free, the same way Colombian goods have entered the United States for many years. Under the Agreement, tariffs on 80 percent of U.S. consumer and industrial exports will be eliminated immediately. American agricultural exports will enjoy substantial new improvements in access to Colombia's market. Once the Agreement enters into force, almost 70 percent of current U.S. agricultural exports will be able to enter Colombia duty-free immediately.
The Colombia-U.S. Free Trade Agreement contains important new guarantees on labor and human rights. It embodies the highest standards for protecting labor rights, carrying out covered environmental agreements, and ensuring key domestic labor and environmental laws are enforced. Colombia has already made significant reforms related to the obligations it will have under the labor chapter, and must successfully implement key elements of an agreed-upon Action Plan before the Agreement goes into force.
Finally, the Free Trade Agreement with Panama will immediately eliminate tariffs on over 87 percent of U.S. exports of consumer and industrial goods and on more than half of U.S. exports of agricultural goods, providing access for American exports to one of Latin America's fastest growing economies.
These three agreements must be passed in conjunction with Trade Adjustment Assistance, which supports Americans who need training and other services when their jobs are adversely affected by trade. As we expand access to other markets abroad, we need to ensure that American workers are provided the tools needed to take advantage of these opportunities and are not marginalized in the global economy.
Without these trade agreements, the U.S. economy will be left behind. Other countries are passing trade agreements with these three countries. The European Union's free trade agreement with Korea went into force in July, and has already seriously disadvantaged U.S. exporters in the Korean market. Canada's agreement with Colombia is impacting U.S. wheat exports by putting them at a 40 percent price disadvantage.
We know that free trade agreements work. In state after state, we see increases in exports following implementation of these agreements. Passing these deals is important to our economic recovery, but also essential for national security reasons. These nations are three important partners in strategically vital areas. Countries everywhere are watching to see whether America will deliver for its friends and allies, and Americans at home are looking for jobs. Passage of these agreements will advance our economic, foreign policy and national security interests.
You can learn more about the Free Trade Agreements here.