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Sustaining the Medellin Miracle
 
Globalization helped tame once violent Medellin, but the city is struggling to stay prosperous in the increasingly competitive world.
(Video By Travis Fox -- washingtonpost.com) TOOLBOX
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An agreement would make permanent the duty-free access for most Colombian exports to the United States , while also granting U.S. products reciprocal status in Colombia t for the first time. The current preference agreement is subject to regular reviews and renewals by Congress. A vote in March approved those preferences through December, when a new vote will be required to extend them. The uncertainty, officials here say, is costing jobs and money.
Crystal, for instance, recently lost a $10 million contract with Footlocker to produce T-shirts as the U.S. company shifted sourcing to Honduras, which executives here say has an unfair advantage over Colombia in that it has a free trade agreement. Other U.S. clients, such as Russell , owners of the Spalding and Huffy Sports brands, are hedging their bets, shifting half their sourcing to Honduras.
Although strongly backed by the Bush administration, an a free-trade pact with Colombia -- as well as other pending agreements with South Korea and Panama -- have been blocked by Democrats. Some are calling for a review of all future free trade agreements to assess their impact on U.S. workers.
Given the relatively small Colombian economy, opposition to the pact has focused less on the potential loss of U.S. jobs and more on the plight of Colombian unionists.
The Colombian government, critics argue, adheres to draconian laws that strongly discourage organized labor. "If the deal passes, you would be sending a signal that the U.S. has no regard for the welfare of workers in the countries where you buy your products," said Hector Vásquez, a director of the National Institute of Unions in Medellin.
Some here also say it would be better to stick with the preferences, rather than sign a pact that would create more competition for domestic companies by allowing U.S. products to enter Colombia duty-free.
Yet many Colombian industry leaders seem to think they have more to lose if they don't strike a deal.
"We are afraid of losing what we have built, afraid of what is starting to be a crisis of confidence in Colombia that is leading our clients to move elsewhere," said Luis Fernando González Usuga, Medellin head of the National Export Association. "The U.S. has always talked about why Latin America needs free trade. Well, now we're true believers in Colombia. Why turn us away?"
