White House Report Highlights Positive Impacts of Trade and FTAs

• Get updates on trade, Customs and regulatory changes
• Stay informed on trade compliance seminars,
  workshops and industry events

x

Sandler, Travis & Rosenberg Trade Report May 12, 2015

As the debate over trade policy heats up in Washington and around the country, the Obama administration released this week a report highlighting the positive effects of enhanced U.S. trade and free trade agreements. The White House is working to secure trade promotion authority to expedite congressional consideration of the FTAs it is negotiating with Asia-Pacific countries and the European Union, and the report’s findings could be used to counter the arguments of those who say these agreements will leave the U.S. worse off.

As might be expected, the report emphasizes the importance of exports to the U.S. economy and the role of FTAs in expanding outbound shipments. The report contends that with nearly 70 percent of U.S. imports entering duty-free, the primary impact of new FTAs would be to lower the barriers faced by U.S. exporters in foreign markets, including average tariffs of 6.8 percent and “numerous non-tariff barriers.” As exports increase, the report adds, so do wages for domestic employees. Studies show that export-intensive industries pay workers up to 18 percent more, and the average industry’s export growth over the past 20 years translated into $1,300 in higher annual earnings for the typical middle-class worker. During the same period export increases also yielded an eight percent gain in labor productivity.

Read Full Article on Sandler, Travis & Rosenberg Trade Report »