Posted by
Dave Smith on Sunday, May 11, 2008 8:18:38 PM
Watching CNN today, I saw an interesting story on exports that is especially topical in terms of the anti-trade sentiment that has been so prevalent over the past couple of years, particularly during the current campaign for the Presidency. At various times, Republican candidates like Duncan Hunter, Tom Tancredo, and Mike Huckabee and Democratic frontrunners Hillary Clinton and Barack Obama have advocated greater government intrusion into trade and commerce, and have denigrated free trade agreements like NAFTA. Trade with China has been another favorite target of politicians' ire, stoked by a spate of product quality issues in Chinese-made toys.
According to data from the US Office of Trade and Industry Information, (a department within the Commerce Department), in 2007 the United States exported $1.1 trillion in goods and services. That's a 100% increase over the past 15 years, and exports increased in 2007. The leading countries in increased exports? Canada, with an $18.2 billion increase, and China, with a $10 billion increase. Others in the top 5 included Germany ($8.3 billion), and developing economies India ($7.5 billion) and Brazil ($5.4 billion).
The data are significant, as they show that trade is not just a one-way transaction -- a fact ignored by repeated emphasis on the so-called "trade deficit" and by the anecdotes of lost jobs due to trade deals. Yes, we are importing billions of dollars of goods and services from our NAFTA partners and from China, but we are also increasing our exports as well. Imports provide American consumers with more choices, greater innovation, and lower prices while stoking competition that improves the quality of American companies. Exports create jobs as American companies expand their markets overseas. Both are engines of economic growth; neither should be discouraged by anti-trade government intrusion.