Trade bills could help increase Long Beach, LA Port traffic
Posted: 10/17/2011 07:45:50 PM PDT
LONG BEACH — Newly passed trade bills are expected to boost volumes through local ports, particularly for California farmers and manufacturers exporting to South Korea.
The three trade bills, which had been fiercely debated on Capitol Hill for nearly five years, lower tariffs and other barriers on U.S. autos, beef, citrus, tree nuts, cotton and wine, among other products, to South Korea, Panama and Colombia.
The biggest boost at the ports of Long Beach and Los Angeles would be with South Korea, a burgeoning market of some 50 million people. The republic is listed as the world's 12 th largest economy.
In a March meeting with farmers, exporters and city officials at the Port of Long Beach, U.S. Agricultural Secretary Tom Vilsack said California farmers alone should see a tremendous boost with the new trade deal.
Already, about half of all U.S.-South Korea trade is handled by the ports of Long Beach and Los Angeles.
The nation is currently Long Beach's second-largest import and third-largest export partner.
Vilsack pointed out that such California commodities as almonds, pistachios, grapes, wine and dairy products are in high demand among growing Asian economies and when implemented in full, agriculture exports could jump by nearly $2 billion annually.
Economists estimate the agreement will boost overall exports to South Korea by $10 billion annually, including the food and beverage products and the rest in autos, electronics, manufactured products and
other goods.
Approved Oct. 12 by Congress, President Barack Obama has said he will sign the three agreements in coming weeks. It then needs approval by the Korean parliament, also expected soon.
The plans had stalled in Congress since 2007 primarily because of Korea's refusal to significantly lower auto tariffs and beef duties. Beef tariffs there reach 40 percent, while auto tariffs are as high as 8 percent.
Those will now gradually drop in parity with U.S. tariffs, which range from 2 to 10 percent.
Automakers are especially delighted as it opens up a wide new market for U.S.-built cars and trucks.
Previously, tariffs made it almost impossible to sell American autos in Korea. For example, while Americans purchased more than 700,000 Korean-built cars and trucks in 2008, about 20 percent of which are made at U.S. plants, Koreans bought only about 5,000 American-made vehicles.
The U.S. Chamber of Commerce believes the deal could double California's trade with Korea by about 2020, primarily by opening a growing market for the state's film, high-tech, auto, aerospace and agricultural industries.
In addition to cuts on existing auto tariffs, the plan eliminates a 15 percent tariff on California wine and an 8 percent tariff on computer parts, two of the state's top exports.
Taxes on California almonds, oranges, helicopters, auto parts and scrap metal would be removed or severely cut.
The agreements with Panama and Colombia will have a much smaller impact on local ports, as most U.S. exports with those nations are handled at gateways on the Gulf of Mexico.
Combined, the countries account for roughly 0.5 percent of total trade moved through Long Beach and Los Angeles, according to port records.
New railyard hearings
Port authorities in Los Angeles have scheduled two public forums to discuss a proposed $500 million railyard bordering West Long Beach, a controversial plan in the works for nearly a decade.
Known as the Southern California International Gateway, or SCIG, the Burlington Northern Santa Fe project would encompass 153 acres at Sepulveda Boulevard and the city's western edge. If built, the railyard would handle more than 1.5 million freight containers within a decade.
The project is opposed by many residents and political leaders in Long Beach, but falls under the jurisdiction of the Port of Los Angeles, which owns most of the land.
Opponents fear it could dramatically increase air pollution and traffic in their neighborhoods.
But supporters, including trade unions, construction companies and shippers, counter that it would eliminate an estimated 2 million truck trips annually between the ports and East Los Angeles, where they now travel before unloading their goods at inland railyards.
The hearings are scheduled for 6 p.m. Nov. 10 at Silverado Park Community Center, 1545 W. 31 st St. in Long Beach and 6 p.m. Nov. 16 at the Wilmington Senior Center, 1371 Eubank St. in Wilmington.
To learn more about the project, go to www.bnsfconnects.com.
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