Q: Why is it so important for the U.S. to seek more open borders with our trading partners?
A: Many busy Americans don't realize the instrumental role that trade plays on the U.S. economy and how it enhances the standard of living for American citizens. Surveys suggest that Americans have limited interest or knowledge in matters involving global trade affairs. Why should the average taxpayer care if the U.S. signs on to new trade alliances or leads the way in global negotiations? Simply put, jobs linked to international trade pay more than other jobs. And a healthy flow of commercial goods and services keeps competition alive and kicking, which brings consumer prices down and innovation up, leading to greater consumer choices. Twenty-five years ago, the U.S. trade volume was about 10 percent of the gross domestic product. By 1999, it rose to more than 27 percent of GDP. Since World War II, the U.S. has sought through international trade to develop a winning combination for world peace and prosperity. If more people understood the progress and achievements attributable to more open borders, the better off American consumers, workers and farmers would be in the 21st century.
Q: Are any new trade agreements in store and would they give the economy a boost?
A: Right now, the administration is working to establish a free trade zone in the Western Hemisphere. Also, the United States hopes to launch a new round of world trade talks in November, so that we can advance key negotiations on two important sectors to Iowa's economy, agriculture and insurance services. Just consider that an Iowa farmer hitting the fields this spring will plant one out of every three acres for export purposes. In 2000, American farmers exported more than $50 billion worth of agricultural products. According to testimony before my Senate Finance Committee in April, Federal Reserve Board Chairman Alan Greenspan referred to America's "awesome" agricultural sector and predicted robust sales abroad should "rather bizarre" foreign trade barriers to U.S. farm goods get lowered. For that to happen, the United States needs to be able to speak with one voice at the world negotiating tables. Unfortunately, we've been unable to do so for the last seven years. That's because the president has been left without full trade promotion authority. This allows the administration to negotiate one-on-one with our trading partners without having 535 members of Congress weigh in on the bargaining process. Congress would still get to vote the trade agreement up or down. Without this authority, the U.S. sits on the sidelines and relinquishes its historic place at the head of world trade negotiations. In fact, the U.S. has been party to only two of the more than 130 estimated free trade agreements in place today. It's a story of you snooze, you lose. That's why I am working aggressively to enact measures that will advance free and fair trade. It's also my intent to improve public awareness and raise the profile of our international trading system. America's ability to increase productivity and propel the economy forward in large measure rests in our ability to compete in every market for every sale.