Straight Talk on Trade

Primaries in Texas and Ohio today could determine the Democratic nominee for president. For many voters, the election will be a referendum on free trade, particularly the North American Free Trade Agreement.

 

Voters in Ohio don't much like NAFTA; many in Texas do. As The Los Angeles Times points out, when Clinton and Obama hit the campaign trail in the Buckeye State, they compete to be NAFTA's biggest critic. But when they jet to Texas, the candidates clam up.

 

In fact, NAFTA is working not only in Texas but also in Ohio, which sells $20 billion in products to Canada and Mexico every year. Unfortunately, Ohio is struggling with economic changes that extend well beyond trade. NAFTA has become a convenient scapegoat.

 

Let's have some straight talk on trade. What do Americans say they want from free trade agreements? Many want protection for American workers, consumers, and the environment; the creation of good-paying jobs; and a level playing field. Are we achieving those goals?

 

Let's focus on jobs. Trade has spurred jobs for some types of workers while decreasing it for others. It's hard to pinpoint which jobs are lost due to trade or for other reasons. For example, thanks to technology, manufacturers can produce more goods with fewer workers. Some manufacturing jobs move from one U.S. state to another because of a more attractive business climate. Some jobs simply disappear as outdated industries fade away (think horse and buggies and carbon paper).

 

What we do know for certain is that since 2002, the United States has created nearly 16 million jobs. We know that America is the world's largest exporter and that one in five U.S. jobs are closely tied to our exports, meaning if we refuse to trade with the rest of the world we really will hear a giant sucking sound!

 

While most workers and consumers benefit from trade, we need to recognize some other facts. Some workers are dislocated. They deserve our support. They deserve new opportunities. They deserve better education and retraining programs so that they can succeed in a 21st century economy.

 

Our workers and businesses deserve a level playing field. Shutting down our trade, and pulling out of agreements with our closest neighbors, won't help anyone.

 

The bottom line: We need to focus on making free trade work better for more Americans, not shaking our fist at it and falsely blaming it for every economic ill. Presidential candidates, take note.