Reuters Relieved after five years of waiting, Colombia celebrated US approval of a free trade agreement the government said should boost the Andean nation's investment prospects, cut violence against union leaders and create jobs. The pact – which was stuck in the US Congress since 2006 before passage on Wednesday – may help triple Colombian exports to the United States to $50 billion over five years and create 300,000 jobs, Trade Minister Sergio Diaz-Granados said. “It's backing for what Colombia has done over the last 10 years to improve the country,” he told Reuters, referring to the South American nation's economic stabilization and pushing back of left-wing rebels in recent times. As well as financial gain, the pact is intended to help curb violence against union leaders as it may help boost leverage to enforce human rights. The US Congress also approved pacts with South Korea and Panama that are expected to lift American exports by about $13 billion a year. Shipments to Colombia could increase $1.1 billion from $12 billion in 2010, according to the US government. Though some are concerned Colombian farmers could be overwhelmed by duty-free US imports, analysts broadly view the deal as the latest sign of foreign confidence in Colombia in its efforts to fully quell five decades of guerrilla violence and tackle the illegal drugs trade. “This is a huge deal for Colombia,” said Eric Farnsworth, vice president of the Council of the Americas in Washington. “Unquestionably it's another important step to raising Colombia in the global investor consciousness, in changing the narrative.” The agreement would fix duty-free access for most of Colombia's exports to the United States. Colombia, which has received about $6 billion in US anti-narcotics aid since 2000, will now offer more investor certainty by fixing trade privileges that had been subject to renewal by the US Congress, said Farnsworth, a specialist in Latin American trade. The pact, which may take more than a year to kick in, will serve as an “antidote” to shield Colombia from the impact of a global slowdown and help add as much as 1 percent to economic growth, already forecast to expand at least 5 percent in 2011, trade minister Granados-Diaz said. His boss, President Juan Manuel Santos, described the approval as “historic” and marking a “new era” in US ties. “The free trade agreement ends the uncertainty that has been discouraging long-term investment and it now guarantees to all investors stability in the rules of the game,” he said. While it's a “win-win” for both countries in the long term, commodity-rich Colombia may not benefit for several years, said Javier Diaz, head of the exporters' association Analdex. Colombia received $10.77 billion in foreign direct investment through September, 84 percent of which came from oil, gas and mining. Now it is likely to benefit from investments in other goods and services. __
