A Time Out on Trade?

Is America afraid to compete?

 

Poll after poll shows that when it comes to trade, Americans not only view themselves as losers, but as victims. Trade and globalization have become scapegoats for all of our economic woes, from lost jobs to lower wages.

 

Late last week a Fortune magazine poll found that 68% of Americans say our trading partners are benefiting the most from free trade, not the United States. Half of those polled believe that growth in international trade has made things worse for consumers, 55% believe American business has been harmed, and 78% think it has made things worse for American workers. Nearly two-thirds of Americans are even willing to pay higher prices to keep down foreign competition!

 

Sensing a clear trend and hoping to capitalize on it, presidential candidates and TV talking heads like Lou Dobbs are fanning the flames of protectionism. Several aspirants for the Oval Office are calling for a "time out" on trade. Some are even talking about reopening agreements already on the books, such as the North America Free Trade Agreement.

 

How could so many Americans' beliefs about trade be so disconnected from reality? Arguments against free trade turn logic on its head. Free trade is not causing an economic slowdown, it might be saving us from a recession. Free trade is not costing us jobs, it's resulting in a net increase.

 

Trade helps create jobs here at home, lowers prices for products, and increases consumer choices. International trade is now equivalent to about one-third of entire economy. Our exports to the world support at least 12 million good-paying American jobs. Ninety-seven percent of U.S. exporters are small or medium-size businesses. One in every three acres of farmland in the United States is planted for export. Don't forget--95% of the world's consumers live outside the United States!

 

When it comes to trade in services, "insourcing" beats "outsourcing" by nearly $97 billion annually. International investors create 5.1 million jobs in our country, with salaries that are on average 15% higher. The number of U.S. jobs outsourced is a fraction of our 140 million-person workforce.

 

Of course, statistics are no comfort to the worker who's lost his or her job. That's why we need to support programs that help retrain and reemploy workers so that they can prosper in the 21^st century knowledge economy.

 

I'm convinced that if we set the record straight on trade, facts will triumph over fear. At the same time, we need to acknowledge that today's dynamic economy creates some dislocation and pain, and that we're committed to doing what it takes to get impacted Americans back on their feet and on the road to prosperity.

 

The answer is not picking up our marbles and running home. The answer is not asking the world to stop so we can get off. The answer is not letting our fears get the better of us. Let's remember who we are--the most competitive, successful, optimistic country on earth. Free trade is a winner for America and can continue to drive our economic growth for years to come, if we remain engaged, confident, and level-headed.