USTR - Trade Promotion Authority Delivers Jobs, Growth Prosperity and Security at Home
                 
The Office of the United States Trade Representative

Trade Promotion Authority Delivers Jobs, Growth Prosperity and Security at Home
01/31/2007


Trade Promotion Authority enables the United States to maintain its leadership position in the global economy.

The United States is actively opening markets abroad for Americans with free trade agreement (FTA) negotiations in Latin America, Asia, the Middle East, and Africa. Through 2006, exports to FTA partners with Agreements put into effect under this Administration are growing twice as fast as our exports to the rest of the world. Our current FTAs in force account for seven percent of the world GDP (excluding U.S.) and 42 percent of U.S. exports.

Over the last six years, the Administration has put free trade agreements into effect with 10 countries. Agreements with the Dominican Republic, Costa Rica and Oman have passed Congress and await implementation. Agreements have also been signed with Peru and Colombia, and negotiations have been concluded with Panama. These agreements collectively will bring significant benefits to Americans and the American economy as well as to our FTA partners – and a renewal of Trade Promotion Authority will allow the United States to continue to open markets across the globe.

In countries and regions throughout the world, the United States’ global economic leadership continues to create more and better jobs for Americans, achieve market gains for U.S. exporters, generate economic growth and development opportunities for our free trade partners, and enhance choice and purchasing power for U.S. consumers, farmers and businesses.

Trade Creates More and Better Jobs for American Families

  • America drives the world economy, but 95 percent of the world’s consumers live outside of the United States.
  • Manufactured exports support an estimated 5.2 million jobs in the United States, including 1 in 6 manufacturing jobs. Agriculture exports (including processed food) support 836 thousand jobs in the United States.
  • U.S. jobs supported by goods exports pay an estimated 13 percent to 18 percent more than the U.S. national average. Further reduction in trade barriers will spur the creation of more, higher paying jobs in the United States.
  • Services account for 8 out of 10 jobs in the United States and present an area of significant growth potential from a successful Doha round.

Trade Grows the American Economy to Build Stronger Communities

  • Trade helps to stimulate economic growth, and supports the creation of higher paying jobs, thus helping American families to meet financial obligations ranging from health care to car payments to retirement savings.
  • Trade delivers a greater choice of goods – everything from food and furniture to computers and cars – at lower prices. Trade Promotion Authority will benefit American families by helping the United States to pursue – and implement – trade agreements. These agreements are equivalent to tax cuts, as they reduce tariffs and thus produce lower-priced goods.
  • Today, U.S. annual incomes are $1 trillion higher, or $9,000 per household, due to increased trade liberalization since 1945.
  • The two major trade agreements of the 1990s – the North American Free Trade Agreement and the Uruguay Round – generate annual benefits of $1300-$2000 for the average American family of four.

Trade Builds International Partnerships for Security

  • The Central America-Dominican Republic Free Trade Agreement is a central part of the United States’ support of freedom, democracy and economic reform in our own neighborhood.
  • To re-ignite economic growth and expand opportunity in the Middle East, the President proposed in 2003 establishing a U.S.-Middle East Free Trade Area within a decade. The United States is committed to expanding trade in the region and providing economic hope for millions in the Middle East, and now has free trade agreements with five countries in the region. The 9/11 Commission unanimously recommended that the United States expand trade with the Middle East as way to "encourage development, more open societies, and opportunities for people to improve the lives of their families."
  • Pending trade promotion agreements with Peru, Colombia and Panama present new opportunities to expand economic freedom, fight the scourge of narco-terrorism, expand export opportunities for American workers and build strategic alliances with key friends and allies in the Americas.
  • In 2006, the United States launched negotiations on free trade agreements with each Korea and Malaysia. The Korea-United States Free Trade Agreement (KORUS FTA) will be the most commercially-significant FTA the United States has completed in 15 years. Two-way trade between the United States and Korea is valued at $72 billion and should grow once an FTA is concluded. Malaysia is the United States’ tenth largest goods trading partner with two-way trade amounting to nearly $50 billion annually. The removal of trade and investment barriers will strengthen the relationship with these two countries, which have been at the forefront of the economic dynamism transforming Asia in recent years.
  • The Doha Development Agenda of the WTO stands at the center of U.S. efforts to ignite economic growth and development worldwide. Launched in 2001, the United States remains committed to reaching a successful outcome that opens markets, generates new trade flows and brings greater prosperity to the world’s citizens.