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Obama jobs plan could impact trade, rural America

By JERRY HAGSTROM

President Barack Obama’s speech on jobs to a joint session of Congress Thursday evening did not specifically mention agriculture, but his statements on trade and rebuilding roads and other infrastructure could have an impact on agriculture and rural America.

Obama urged Congress to pass the pending trade agreements with Korea, Colombia and Panama, but he also made it clear that his support for those agreements depends on congressional willingness to reauthorize trade adjustment assistance for workers and farmers hurt by the trade agreements.

“Now it’s time to clear the way for a series of trade agreements that would make it easier for American companies to sell their products in Panama, Colombia, and South Korea — while also helping the workers whose jobs have been affected by global competition,” Obama said in the speech.

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. I want to see more products sold around the world stamped with three proud words: ‘Made in America,’” he said.

Farm groups have pushed hard over the years for the trade agreements, but have generally been silent on the issue of trade adjustment assistance. Some Republicans have remained opposed to TAA, but others have said they recognize that the only way to get the trade agreements approved is to vote for TAA as well. Some Democrats close to labor unions have opposed the agreements but favor TAA.

The National Foreign Trade Council, a general pro-trade group, which said earlier this week that House passage of a bill extending the general system of preferences showed an opportunity to pass trade legislation, praised the president’s speech but said it is time for action.

“"With all three trade agreements inked more than four years ago, and the lapse of TAA and [the Andean Trade Preference act] in February, and GSP in December, we are pleased the president has recognized the importance of moving the trade agreements forward as part of his jobs agenda,” the group said. “However, it is now time to stop talking about the merits of the agreements — it is time for action. We urge the administration and Congress to work together in a bipartisan manner to advance the trade agenda in the coming weeks.”

“The FTAs, TAA and the preference programs are important factors in helping to boost the economy and getting Americans back to work,” the group added. “Each piece of trade-related legislation has a significant role to play in increasing U.S. exports and supporting and creating jobs in America. It is due time for action to begin on all of these fronts.”

Obama emphasized his proposal would create jobs throughout the country.

“Pass this jobs bill, and we can put people to work rebuilding America,” Obama told Congress. “Everyone here knows that we have badly decaying roads and bridges all over this country. Our highways are clogged with traffic. . . . This is inexcusable. Building a world-class transportation system is part of what made us an economic superpower. . . . There are private construction companies all across America just waiting to get to work. There’s a bridge that needs repair between Ohio and Kentucky that’s on one of the busiest trucking routes in North America.”

Associated General Contractors and other groups released a report Monday detailing decaying roads and bridges throughout rural America, and an AGC spokesman today praised the president for differentiating between wasteful government spending and “investments in an efficient transportation system.”

“The construction industry needs these investments and the economy needs these investments,” said spokesman Brian Turmail.

Turmail said it is unclear whether more money for rural road construction might come through passage of a pending multi-year highway bill or through a special jobs bill. Either would be acceptable to the industry, he said, but noted that the country really needs a multi-year bill so that state and local officials can plan construction of projects that take years.

Turmail also said he was discouraged that a House subcommittee had voted this week to cut road funds by 30 percent.

Obama, in making his case that the country must continue to make investments even though there is concern about the federal debt, also cited several programs that have helped rural America.

“We all remember Abraham Lincoln as the leader who saved our union,” Obama said. “But in the middle of a civil war, he was also a leader who looked to the future — a Republican president who mobilized government to build the transcontinental railroad; launch the National Academy of Sciences; and set up the first land grant colleges. And leaders of both parties have followed the example he set.”

Agriculture Secretary Tom Vilsack, who is traveling to Ohio today and Florida on Saturday to promote the president’s jobs plan, said in a statement late Thursday that the jobs bill “will have an immediate impact” and that “too many of rural areas are dealing with crumbling infrastructure.”

In what appeared to be a challenge to Republicans in Congress, Vilsack added, “Americans living in rural communities know well that the specific ideas in the bill work. They know the benefits of rebuilding local roads, or of improving their water system. And our rural construction workers are ready to get back on the job. The small businesses that employ most rural Americans know that the tax cuts in the bill will mean more work, so they can expand and hire. And every working rural family will benefit from money back in their pockets. Small rural governments know they can use the support to keep folks on payroll. Teachers, firefighters and other first responders need to be kept on the job preparing our children for a better future and keeping our families safe.”

Republican congressional leaders were generally conciliatory toward the president’s proposal, while GOP presidential candidates criticized it for proposing more spending.

Obama also mentioned reducing tax breaks for oil companies, which has been a key goal of ethanol groups.

“Should we keep tax loopholes for oil companies?,” Obama asked. “Or should we use that money to give small business owners a tax credit when they hire new workers? Because we can't afford to do both.”