July 7, 2015

　　On June 29, President Obama signed into law trade promotion authority (TPA) legislation following its approval by the Senate on June 24 by a vote of 60–38. Key members of Congress and the Obama administration were united in calling for early action on TPA, which could pave the way for new trade agreements that eliminate barriers and level the playing field in overseas markets.

　　ACA had supported passage of this legislation in order to provide the President “fast-track” authority to conclude modern trade agreements such as the proposed Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership. These agreements will help U.S. businesses operate in a global economy that has changed dramatically, particularly given the rise of the digital economy, since the last TPA was passed 13 years ago. ACA also has followed the recent efforts to open relations with Cuba to facilitate the export of U.S.-manufactured goods, including building materials to that country.

　　According to the U.S. Department of Commerce’s International Trade Administration (ITA), nearly 3.2 million American jobs were supported by goods exports to the United States’ 20 free trade partners in 2014. That accounts for just under 45% of the total jobs supported by goods exports. And since 2009, goods exports to our free trade partners grew by just under 65%, compared to 45% for the rest of the world.

　　The United States’ two largest export markets are also NAFTA trade partners — Canada and Mexico — to which the nation delivered more than $600 billion in goods and services last year. The success of NAFTA can also be measured by the reduced costs of trading between the three NAFTA countries, continuing progress toward streamlining trade and greater integration of our supply chains, and the 258% increase in U.S. manufacturing exports to Mexico and Canada over the past 20 years.

　　In a May 11 letter to members of Congress, ACA, along with 75 organizations representing every sector of the U.S. manufacturing economy, urged swift passage of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, introduced by House Ways and Means Committee Chairman Paul Ryan (R-WI), Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR). ACA urged Congress to ensure a level playing field for U.S. exports. While the U.S. market is largely open to imports from around the world, some countries continue to levy high tariffs on U.S. exports, and foreign governments have erected non-tariff trade barriers against U.S. goods and services. America’s trade agreements, however, work to create a level playing field, and by tearing down foreign barriers to U.S. products, these agreements have a proven ability to enlarge markets for U.S. products, even in small economies.

　　Supporters of TPA maintain that across the country, trade is working for businesses of all sizes and for the nearly 12 million women and men they employ. Trade agreements negotiated under TPA help manufacturers and workers reach foreign consumers, and empower U.S. industries to compete for a greater share of the $11.8 trillion global market for manufactured goods.

　　Since TPA was last authorized in 2002, U.S. goods exports have more than doubled to a record high of almost $1.4 trillion in 2014. The United States enjoys a nearly $55 billion manufacturing trade surplus with its 20 current trade agreement partners. Manufacturing employees in the “most trade-intensive industries” earn 56 percent more than those in manufacturing companies that were less engaged in trade, according to the Manufacturing Alliance for Productivity and Innovation MAPI.

　　Contact ACA’s Allen Irish for more information.