Biggest US Free-Trade Accord Since ’94 Passed

In an unusual display of agreement, the 112th US Congress approved free-trade agreements with South Korea, Colombia and Panama. The South Korea deal alone will remove duties on almost two-thirds of US farm exports and phase out tariffs on virtually all industrial and consumer exports within five years, reports Bloomberg. The US is striving to double US exports by 2015, and trade momentum could extend to a US-led Trans-Pacific Partnership accord negotiated by nine nations. “With advanced economies facing predictions of a return to recession, the free-trade deals show how developed nations are turning to emerging markets as sources of growth,” report Eric Martin and William McQuillen. Any good feelings on international trade with emerging economies may not extend to China. Shortly before approval of the trade deals, the US Senate approved a bill that would impose retaliatory tariffs on Chinese exports if the value of the renminbi remains artificially low against the dollar. – YaleGlobal