Page 30 - 2019 Washington DC Trip Packet

INTERNATIONAL TRADE

International trade is vital to our state and national economies. Over 800,000 Wisconsin
jobs are supported by trade, and $30 billion worth of goods and services were exported
from Wisconsin in 2014. More than 41 million American jobs depend on trade, and
trade is critical to the success of many sectors of the economy.

The Benefits of Imports: According to the US Chamber of Commerce, “Amid a
renewed focus on boosting U.S. exports, it is important to bear in mind that imports
benefit Americans as well. They bring lower prices and more choices for American
families as they try to stretch their budgets. Companies also depend on imports for raw
materials and competitively priced inputs. Imports give us access to products that
would not otherwise be available—such as fresh fruit in the winter. Access to imports
boosts the purchasing power of the average American household by about $18,000
annually. Companies’ imports of intermediate goods, raw materials, and capital goods
account for more than 60% of all U.S. goods imports—lowering costs for manufacturers
and other businesses and helping them hone their competitive edge.”

Free Trade Agreements: Again, the US Chamber states: “tremendous benefits have
flowed from U.S. free-trade agreements (FTAs), which cover 20 countries. These
countries represent approximately 6% of the world’s population outside the United
States, and yet last year these markets purchased nearly half of all U.S. exports,
according to the U.S. Department of Commerce. In other words, U.S. FTAs do an
outstanding job making big markets even out of small economies.

The trade balance is a poor measure of the success of these agreements, but deficits
are often cited by trade skeptics as a reason why the United States should not negotiate
free trade agreements. However, with regard to manufactured goods, the United States

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