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world is charging ahead in pursuit of in world trade between 1929 and 1934. This
new market-opening trade agreements, as contributed powerfully to the Great Depression,
explained earlier in this series, but in recent which set the stage for war.
years Washington policymakers have been
sitting on trade policy’s sidelines. The United They vowed not to let history repeat itself.
States derives huge benefits from trade and And for more than 75 years, trade agreements
trade agreements, but will America lead on have fostered economic growth and good jobs,
trade as it has in the past? but they have also strengthened ties of peace,
cooperation, and friendship between nations.
This week’s installment looks at the strategic The 40-fold increase in world trade over post-
benefits of trade to the United States. war period helped drive a dramatic decline in
absolute poverty in developing countries, which
The benefits of trade for American workers, recently fell to 8% for the first time.
farmers, and companies are hardly a secret. As
this series has explored: Trade policy remains strategically important
because no country can afford a strong military
• More than 41 million Americans jobs depend without a strong economy. Indeed, America’s
on trade, and jobs tied to trade tend to pay 15- military leaders are quick to point out their
20% higher wages than those that don’t. preference for the “soft power” of trade and
diplomacy over the “hard power” of military
• Nearly half of everything American force: The former is a bargain compared to the
manufacturers produce is destined for export latter—both in terms of treasure and blood.
markets; in fact, about 6 million of the 13 million
Americans employed in manufacturing owe A changing global economy makes America’s
their jobs to exports. trade leadership even more important. Most
of our trade pacts were negotiated long before
• Similarly, about 25% of U.S. farm products by the rise of the internet and e-commerce, before
value are exported each year, with farm exports the U.S. economy became so dependent on
reaching nearly $200 billion in fiscal year 2023. intellectual property, and before state-owned
enterprises became major players in the
• But the benefits of trade for America go global economy.
beyond growth, jobs, and prosperity.
The United States must be at the table as the
Simply put: Trade agreements enhance our rules for global trade are written. The rise
national security, strengthening ties with our of China and its model of state capitalism
allies at a time when autocracy is on the makes this more important than ever. Beijing’s
march worldwide. subsidies, industrial policies, and unfair trade
practices favor its national champions in key
The history of American leadership on trade industries and put foreign enterprises at a
is compelling. In the aftermath of the Second disadvantage. At substantial cost, this has
World War, the U.S. took the lead in framing a afforded China commercial advantages in a
global, rules-based trading system based on the number of areas.
principles of reciprocity, non-discrimination, and
openness. Successive rounds of tariff-cutting U.S. trade agreements can provide new tools so
negotiations over half a century helped increase that we and our partners can respond to these
world trade from $58 billion in 1948 to $25 practices in our own markets. They enhance
trillion today. commercial ties that make our economies more
competitive. Trade agreements can also, in the
No country benefitted more from this growth words of George Washington, raise “a standard
in trade than the United States. Overall, trade to which the honest and honest can repair” —
expansion has raised America’s GDP per a standard of fair play and transparency that
household by more than $18,000 per year. others will want to emulate.
America’s Greatest Generation established this
post-war trading order because they knew the Trade enhances not only our standard of living
costs of protectionism. The disastrous Smoot- but our standing in the world. For both these
Hawley Tariff Act of 1930 triggered a 66% decline reasons, America must lead on trade.
SOUTH CHINA BUSINESS JOURNAL 22
new market-opening trade agreements, as contributed powerfully to the Great Depression,
explained earlier in this series, but in recent which set the stage for war.
years Washington policymakers have been
sitting on trade policy’s sidelines. The United They vowed not to let history repeat itself.
States derives huge benefits from trade and And for more than 75 years, trade agreements
trade agreements, but will America lead on have fostered economic growth and good jobs,
trade as it has in the past? but they have also strengthened ties of peace,
cooperation, and friendship between nations.
This week’s installment looks at the strategic The 40-fold increase in world trade over post-
benefits of trade to the United States. war period helped drive a dramatic decline in
absolute poverty in developing countries, which
The benefits of trade for American workers, recently fell to 8% for the first time.
farmers, and companies are hardly a secret. As
this series has explored: Trade policy remains strategically important
because no country can afford a strong military
• More than 41 million Americans jobs depend without a strong economy. Indeed, America’s
on trade, and jobs tied to trade tend to pay 15- military leaders are quick to point out their
20% higher wages than those that don’t. preference for the “soft power” of trade and
diplomacy over the “hard power” of military
• Nearly half of everything American force: The former is a bargain compared to the
manufacturers produce is destined for export latter—both in terms of treasure and blood.
markets; in fact, about 6 million of the 13 million
Americans employed in manufacturing owe A changing global economy makes America’s
their jobs to exports. trade leadership even more important. Most
of our trade pacts were negotiated long before
• Similarly, about 25% of U.S. farm products by the rise of the internet and e-commerce, before
value are exported each year, with farm exports the U.S. economy became so dependent on
reaching nearly $200 billion in fiscal year 2023. intellectual property, and before state-owned
enterprises became major players in the
• But the benefits of trade for America go global economy.
beyond growth, jobs, and prosperity.
The United States must be at the table as the
Simply put: Trade agreements enhance our rules for global trade are written. The rise
national security, strengthening ties with our of China and its model of state capitalism
allies at a time when autocracy is on the makes this more important than ever. Beijing’s
march worldwide. subsidies, industrial policies, and unfair trade
practices favor its national champions in key
The history of American leadership on trade industries and put foreign enterprises at a
is compelling. In the aftermath of the Second disadvantage. At substantial cost, this has
World War, the U.S. took the lead in framing a afforded China commercial advantages in a
global, rules-based trading system based on the number of areas.
principles of reciprocity, non-discrimination, and
openness. Successive rounds of tariff-cutting U.S. trade agreements can provide new tools so
negotiations over half a century helped increase that we and our partners can respond to these
world trade from $58 billion in 1948 to $25 practices in our own markets. They enhance
trillion today. commercial ties that make our economies more
competitive. Trade agreements can also, in the
No country benefitted more from this growth words of George Washington, raise “a standard
in trade than the United States. Overall, trade to which the honest and honest can repair” —
expansion has raised America’s GDP per a standard of fair play and transparency that
household by more than $18,000 per year. others will want to emulate.
America’s Greatest Generation established this
post-war trading order because they knew the Trade enhances not only our standard of living
costs of protectionism. The disastrous Smoot- but our standing in the world. For both these
Hawley Tariff Act of 1930 triggered a 66% decline reasons, America must lead on trade.
SOUTH CHINA BUSINESS JOURNAL 22
