Teaching a man to fish

TK: Here is a column by Dean Kleckner, a trade analyst with deep ties to American agriculture. Kleckner is featured in the Weekly Trade and Technology newsletter, and his column this week speaks to what he believes is the most beneficial kind of long term assistance Peru could receive - economic opportunity via a free trade deal. It is also worth pointing out that U.S. produce companies that do business with Peru already give the best assistance to Peru by providing a market opportunity for fresh produce like asparagus, citrus and onions from the South American country.

From Dean:

A horrific earthquake in Peru has left more than 500 people dead and thousands homeless. In Pisco, the hardest-hit city, 80 percent of the buildings have collapsed. The place “seems like it was bombed,” said a local official, according to the New York Times.
Americans have responded to this natural disaster with prayers, compassion, and donations. Last Sunday, many churches held special collections for the victims. Organizations such as the Red Cross (800-HELP-NOW), Catholic Relief Services (877-HELP-CRS), and Save the Children (800-728-3843) are pitching in as well. In Washington, the Embassy of Peru has established two bank accounts for accepting financial help (visit the website or call 202-833-9860).
All of these first-response efforts will help in the short term by making sure Peruvians have food, water, and other basic necessities.
The earthquake caused such massive destruction, however, that Peru will be plagued by long-term problems. The best way for the United States to help it address these significant challenges won’t be through foreign aid, but rather through international trade--and specifically through the passage of the U.S.-Peru Free Trade Agreement, which is currently before Congress.
It all goes back to the famous proverb: Give a man a fish and he will eat for a day, but teach a man to fish and he will eat for a lifetime.
Right now, it’s appropriate to give suffering Peruvians all the fish they can eat, so that they can begin to climb out of the ruins of an earthquake that measured 8.0 on the Richter scale, plus a series of brutal aftershocks. Once they’re back on their feet and standing on stable ground, everyone’s interest lies in making sure they can stay there and begin the difficult process of reconstruction.
Rather than giving them handouts, we should provide them with economic opportunities.
To a certain extent, we already do: Trade between the United States and Peru is currently worth more than $7 billion annually.
Yet we can do better. Approving the free-trade deal would boost this $7-billion figure. Much of the new economic activity would benefit Peruvians and create jobs for them. It would help them build upon recent success: Their economy is currently growing by nearly 8 percent a year and inflation is less than 2 percent. The Economist says that this is Peru’s “best overall performance since the 1960s.”
More trade also would benefit Americans, who would have better access to the Peruvian marketplace. Two-thirds of all U.S. agricultural products immediately would enter Peru without paying tariffs and all tariffs would vanish over the next 17 years.
This is a win-win, because it would give our farmers a new export market and reduce the cost of food in Peru.
And that’s only one portion of the pact. The agreement also would improve access for manufactured goods, the service sector, and investments. It would strengthen intellectual property rights in Peru, too. In recent months, the deal has been revised to include new labor standards and environmental protections.
The bottom line is that the U.S.-Peru Free Trade Agreement would increase the ability of Americans and Peruvians to exchange goods and services with each other. The only losers would be tariff collectors and economic isolationists, of which the U.S. has plenty.
The trade deal already has the full support of the White House. Its fate in Congress remains unclear, though it appears to have bipartisan support. Earlier this month, before the earthquake struck, congressional Democrats led by House Ways and Means chairman Charlie Rangel met with Peruvian officials in Lima--and Rangel indicated a desire to hold hearings in September.
Those hearings are now more important than ever. They represent the best way for the United States to help Peru recover from its recent tragedy.
Because of the earthquake, the Peruvians have our sympathy. It’s now imperative that we give them more than our condolences--and provide them with the kind of hope that only economic opportunity can deliver.
Dean Kleckner, an Iowa farmer, chairs Truth About Trade & Technology www.truthabouttrade.org