As World Trade Month Begins, Could We Agree to Start on the Same Page?

Trade and manufacturing continues to be bandied about in interviews with presidential and other candidates, achieving a level of national attention that it deserves given the importance of trade to manufacturing. Unfortunately, most of the conversations are totally removed from the reality of manufacturing in America today and both the challenges and opportunities it provides to businesses, small and large, and the American workforce.

As we begin World Trade Month, lets all start on the same page:

Manufacturing Output Is at Record Levels.
In the most recent data, manufacturers contributed $2.17 trillion to the U.S. economy. This figure has risen since the second quarter of 2009, when manufacturers contributed $1.70 trillion.

 Trade Growth Has Quadrupled Over the Past Quarter Century, as Has Manufacturing Output (See Chart Below).
mfgtrade blog

Free Trade Agreements, Such as NAFTA and Those with 18 Other Countries, Have Been Vital to Grow Manufacturing in America

Manufacturers in America sell 12 times more to our 20 free trade agreement (FTA) partners than to the rest of the world, even though they represent only 6 percent of the world’s consumers. The United States has a trade surplus overall with its FTA partners if that’s how you want to judge the relationship.

Exports FTA
MFG Trade Balance

 

Manufacturing in America Will Lose to Foreign Competitors if the United States Does Not Move Forward Aggressively with New Trade Agreements, Such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) Agreement.

Other countries are more aggressively negotiating trade agreements that exclude and hurt the United States, meaning U.S. exporters face higher tariffs than most other countries in the world:

Tariffs Faced By Ranking Countries

A robust U.S. trade policy to grow manufacturing in America must open foreign markets, ensure strong trade enforcement and improve U.S. manufacturing competitiveness in the face of substantial global competition. Click here to learn more.

Linda Dempsey

Linda Dempsey

Linda Dempsey is the vice president of international economic affairs at the National Association of Manufacturers (NAM). In this capacity, Ms. Dempsey leads the NAM’s efforts to improve the global competitiveness of manufacturers in the United States by advocating intellectual property protection, increased export financing and the elimination of trade barriers as well as pushing for agreements and treaties to open up new export markets to create jobs. Ms. Dempsey is noted for her experience on a wide range of international trade and investment policy issues.
Linda Dempsey

Leave a Reply