Increasing Exports and Economic Growth

By November 5, 2007Trade

In the current issue of Industry Week, Tom Duesterberg of the Manufacturers Alliance/MAPI makes a compelling case for the importance of international commerce to our country. “Global trade is booming,” he writes. “Total world exports are up 138 percent since 2001. Economies in places like China, India, East Asia, Mexico, Brazil, East Europe and Russia are growing rapidly. The United States is especially strong in capital goods and has strong market share in this fast-growing niche. U.S. manufacturers export more than 20% of all they produce, and total goods exports are growing by around 11% this year due to the global economic boom and a weaker U.S. dollar.

“U.S. manufacturers control over 40% of global production for high-tech products, while U.S. agricultural exports represent only 8% of global exports, reflecting the much smaller size of global markets.”

Duesterberg uses this data to make his case that we should not let concern about the agricultural sector derail Doha negotiations. “It makes little economic sense to let the agricultural tail wag the dog on trade policy,” he argues. Amen.

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