Newspaper Article

TRADE AGREEMENTS ONLY WAY TO LEVEL THE PLAYING FIELD

2005

Overview

FTAs aren't \"outsourcing agreements,\" as [Alan Tonelson] asserts. They are the way that we can level the playing field and get our trade deficit down. During the half-century \"Cold War,\" America deliberately opened its market to many countries without asking for access to their markets -- to help foster their industries and create jobs in their economies so they could resist communism. And it worked. But now we've won the Cold War, and it is time for these countries to take down their barriers to us -- that's what these trade agreements are about. Reading Tonelson, you would erroneously conclude that trade agreements are the fundamental cause of our trade deficit. But that's hogwash. The truth is that our FTAs -- principally Nafta -- account for 40 percent of our exports, nearly two-thirds of all our export growth, but only 10 percent of our manufactured goods trade deficit. Fully 90 percent of our trade deficit is with countries that have no FTA's with us -- countries that have not agreed to give us the same access we already give them. More trade agreements would reduce the deficit, not raise it.

• Publisher: The Venetoulis Institute for Local Journalism
• Subject: Tonelson, Alan