Vision - November/December 2008 - (Page 45)

news from washington ] • [ by matthew shaffer tech policy According to a recent consumer survey commissioned by CEA, 69 percent of Americans agree being able to trade with other countries is good for the U.S. economy. ciation reports that small businesses account for 97 percent of all direct U.S. exporters, while creating 60 to 80 percent of new U.S. jobs annually. New jobs are not created without new export markets for American goods and services. The willingness and ability of the U.S. to participate in Free Trade Agreements (FTAs) is critical to America’s future economic success, according to CEA. U.S. exports to Colombia increased by 35 percent between 2000 and 2006, while American exports to South Korea have grown by 45 percent in the same time. These numbers are indeed impressive, but pale in comparison to their potential. The International Trade Commission (ITC) estimates that signing pending FTAs with those nations could increase U.S. exports to Colombia by $1.1 billion, while boosting American exports to South Korea by an astounding $10 billion annually. In order for continued expansion and job creation in the consumer electronics and high-tech sectors, the U.S. must regain its leadership in international trade. to the Colombian market. While Congress plays partisan politics and refuses to offer votes on three pending FTAs, other countries are not sitting quietly on the sidelines. International competitors are negotiating marketopening agreements faster than ever. For instance, Canada sees Congresses’ 700-day hesitation as an opportunity and has negotiated an agreement with Colombia, realizing that the Canadian economy can capitalize on America’s unwillingness to act. According to a recent consumer survey commissioned by CEA, 69 percent of Americans agree being able to trade with other countries is good for the U.S. economy. Of these respondents, an overwhelming 90 percent believe the U.S. benefits from trade because trade helps keep U.S. companies competitive. These numbers speak to the need for Congress to act swiftly to pass the Colombian, Panamanian and Korean FTAs and to reauthorize the President’s Trade Promotion Authority. The recognition of the benefits of free trade is not limited to one geographic area, political party or any other classification. In a National Governors Association policy position, governors of both parties supported the growth of American economies by opening and expanding markets while allowing American companies open access to foreign markets. The U.S. Conference of Mayors and the American Legislative Exchange Council also endorsed the U.S. Colombia Free Trade Agreement. John Murphy, vice president for international affairs at the U.S. Chamber of Commerce, stated, “Congress cannot fail to notice that Americans outside the Beltway are supporting this landmark trade agreement in large numbers…When thousands of mayors and state legislators from across the country join the fight to expand fair trade and create new U.S. jobs, it’s time for the House leadership to take notice.” • November/December 2008 D Industry Urges Congress to Act on Trade Deals espite current economic uncertainty, the high-tech industry leads the economy as America’s largest export sector. Recent data attributes $220 billion in exports to the high-tech sector which represents 21 percent of total U.S. exported goods. While high-tech exports continue to increase, they also continue to create American jobs. Consumer electronics (CE) alone provides 15.4 million of these jobs, created by the ability to export to new markets. Those jobs are high paying, with the average American CE worker earning roughly $25,000 more than the average worker in the national economy. Many of those American CE workers are employed by small- and medium-sized businesses. These are the same competitive companies that comprise 80 percent of CEA membership. The U.S. Small Business Assowww.ce.org Klaus Lahnstein/Getty Images What’s at Stake? While Congress fails to act on FTAs that have been effectively negotiated with trading partners, the businesses that create American jobs, and consumers, are losing. More than 700 days, almost two years, have passed since the U.S. and Colombia signed their FTA, without Congressional ratification. Like all other FTAs, the U.S.Colombian FTA would eliminate tariffs and other trade barriers that hinder American competitiveness. The delay in passage of the U.S. Colombian FTA has cost U.S. businesses an estimated $1.3 billion. Under a temporary trade preference program, Colombian goods already enter U.S. markets duty-free. Signing the agreement would level the playing field for U.S. exporters by giving U.S. businesses comparable access 45 http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - November/December 2008

Vision - November/December 2008 Contents Shapiro's Spectrum In this Issue The Economist C4 Trends Going Global Visionary CES Unveiled Eco-Intelligence Is Vital in a Sustainable Global Market XGP— A Game Changer Enhancing the Tech Experience High-Definition Decade Public-Private Partnerships CEA Newsline Tech Speak Tech Policy Eye on Business Market Insider Just the Stats

Vision - November/December 2008

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