Colombia Gives Free Trade A Chance

Investor's Business Daily

Free Trade: What if they gave a war and nobody came? So far, that's what's happening with Hugo Chavez's mobilization at the border that Colombia is ignoring. No surprise. Colombia's objective isn't war, it's free trade.

From photos of Venezuela's just-mobilized soldiers, it wasn't hard to see that something was terribly wrong. Slouching atop their tanks after Chavez ordered 10 divisions dispatched to Colombia's jungle frontier, they looked bored out of their minds and unsure of what to do next. Tactically, a mobilization of tanks to the Mekong Delta-like river network on the frontier had the making of a quagmire — literally.

Meanwhile, as markets trembled, the Pentagon yawned. Defense Secretary Robert Gates said he expected no conflict and added that "the Colombians can take care of themselves." The U.S. Southern Command, in a bit of thinly disguised mischief on its Web site, noted how fine its new U.S. base in Suriname near Venezuela's now-unguarded eastern frontier was going.

But that was small rum compared to the real problem with the Chavista tank show: No one was there to greet them on the other side of the border.

Colombia, in fact, refused to send troops to match Chavez's (and Ecuador's) 9,000-man mobilization. The military said it wasn't interested in a war with them and would continue to focus instead on its fight against FARC terrorists.

After a string of provocations, such a reply was striking. Colombia's battle-hardened troops could squash the militaries of its two bordering nations if so inclined. Instead, they left Chavez high and dry as the one leader who really had given a war and nobody came.

It says even more about Colombia and where it's going.

On Tuesday, President Bush offered Colombia our support. But rather than seek aid, President Alvaro Uribe asked Bush to appeal to Congress to pass of Colombia's free trade pact, which has been on hold for about two years now. "It will help President Uribe counter the radical vision of those who are seeking to undermine democracy," Bush said in a national address.

So here is Colombia, a nation provoked to war by two barbaric neighbors spoiling for a fight, and the only thing it wants from its big ally up north is the passage of a trade pact to drop tariffs on U.S. goods and encourage investment in both countries.

Perhaps economics have something to do with why Colombia is turning the other cheek. Venezuela and Ecuador are led by radical Marxist caudillos who've severely mismanaged their own nations' economies, chasing out foreign investment and creating shortages.

As food disappears from Venezuela's store shelves, due to economically ruinous capital controls and confiscations, Chavez is increasingly looking for new ways — including war — to divert attention.

Colombia, by contrast, has freed its economy from state control. In the six years since Uribe was elected, he's made the fiscal books transparent and tamed the deficit, setting a stage for confidence.

Inefficient state industries have been privatized and regulations have been cut to ensure that new businesses blossom. Uribe has also strengthened the rule of law, which includes his fight against terrorists and illegal armed groups.

Not surprisingly, foreign investment has poured in and the stock market has soared some 600%. All of this has spilled over to intangibles such as school attendance and charity-giving, both of which are rising. Outside the war on terror, Uribe has done something few leaders have ever done — created a peace economy.

In short, while Chavez has wreaked economic ruin to drive military confrontation, Colombia has sped toward a prosperity that would only be enhanced by a free trade pact with the U.S. Denial of such a pact sends a strong signal that Congress has no interest in encouraging Colombia to continue on its positive path.

Colombia's refusal to get into a fight with Chavez signals a strong preference for peace through trade and development. If Congress won't approve Colombia's free trade pact after such a demonstration of courage under fire, then it's no better than Chavez.

Source: Investor's Business Daily

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