Robert J. Dold is the US Representative serving the 10th Congressional District of Illinois.
Nations commonly enter into free trade agreements to increase economic prosperity, lower the cost of goods, better allocate resources, access new markets, and encourage innovation. Since World War II, America has consistently sought and received these benefits by liberalizing its trade policy and by becoming a party to a number of bi-lateral and multi-lateral trade agreements across the globe. Currently, our participation in these trade agreements significantly increases trade and investment that benefits America and other member nations. Right now, the U.S. has free trade agreements pending with Korea, Colombia, and Panama.
The U.S. Chamber of Commerce estimates that every $1 billion increase in exports directly results in 6,250 manufacturing jobs created here in America. Expanding free markets brings benefits to consumers in the form of lower prices, greater variety, and better quality. It also encourages companies to innovate and specialize. Extending these three trade agreements will bring new economic opportunities to the United States.
According to the President’s analysis, if the U.S. were to sign these three agreements it would create 250,000 U.S. jobs without any government spending. Compared to most countries in the world, the United States has relatively low tariffs on imported goods, so free trade agreements remove the higher barriers of our trade partners. Lowering these artificial barriers to goods and services will help all businesses, big or small, and create new jobs. Every day that the U.S. delays signing these agreements is yet another day of higher tariffs imposed on our country. These tariffs amount to nothing more than a tax on US consumers. Removing such artificial barriers and tariffs has so far increased the purchasing power of American families by $10,000. With rising gas and food prices, this would be a welcome relief for the family budget.
Just last week, a free trade agreement between the European Union and Korea went into effect. This is putting American companies at an extreme disadvantage. At this very moment, Europe is establishing new business ties in Korea, meanwhile we sit idly by and continue to pay steep tariffs. The European Union is now benefiting from lower trade barriers, increased export opportunities, and job creation. The U.S. needs to stop the delay and sign these pending trade agreements. America only falls behind when other nations pass free trade agreements.
There is no question that passing these pending free trade agreements helps every American family and creates new opportunities for growth for American businesses. Given this winning combination, it is unacceptable for Washington to play political games with these free trade agreements and delay their passage.