The sky is not falling

As children many of us learned the story of Chicken Little, a character always claiming, “The sky is falling.” In Congress, we’ve heard a similar refrain with claims that “trade agreements are bad for America.” In fact, these claims were made as Congress acted to ratify bilateral trade agreements with 14 countries since 2001.

As the years have passed, we are witnesses to the fact the sky is not falling and trade is good for America. For example, American workers, manufacturers and farmers have been the big winners thanks to new market access guaranteed under these agreements. For example, in 2005, the United States was suffering a $1.2 billion trade deficit with the six Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) countries. Today we enjoy a $3.6 billion surplus of exports to these same nations: an increase of U.S. exports of $4.8 billion thanks to DR-CAFTA.

My own state of Illinois has been a big winner as well.  

DR-CAFTA eliminated tariffs of up to 40 percent on U.S. products, and U.S. sales have soared as a result. Machinery exports such as construction equipment made in Joliet are up 28 percent. Corn exports are up 48 percent.

Other bilateral agreements have also shown signs of unquestioned success: American automobiles, rice and corn all found an untapped export market in Jordan after implementation of our trade agreement with that nation, our first in the Arab world. Exports to Chile grew by 90 percent in the two years after our agreement with that South American nation took effect, as shipments of motor vehicles grew exponentially.

The agreements are helping our partners as well: Some claimed that our DR-CAFTA partners would suffer from the agreement, but instead the deal has attracted new investment and expanded their exports as well. Small growers and businesses have found a way to tap the world’s largest consumer market in the United States and are exporting everything from vegetables to blue jeans. Exports have increased for our partners an average of 4 percent.

Thanks to expanded exports resulting from good trade agreements, trade represents one of the few bright spots in economic news. In the last quarter, our economy grew by 3.3 percent — 3.1 percent due directly to exports from trade agreements. The Chicken Littles who argue our economy cannot support trade agreements have the issue precisely backward: Our economy cannot afford not to trade with our global partners and expand export opportunities for our American businesses and farmers, especially when you consider one in five U.S. jobs depend on trade.

It is worth noting that the benefits we’re seeing as a result of trade agreements are not surprises.  The expanded economic opportunities were anticipated by proponents of the agreement while the Chicken Littles who oppose trade sang their familiar “sky is falling” refrain.  Unfortunately, this empty warning is being repeated today as Congress considers similar trade agreements with our allies and partners in Panama and Colombia. Both are vibrant democracies and reliable partners of the United States.

Colombia alone is a market of 42 million people, larger than California and equal in population to the six Central American countries included in DR-CAFTA. And like in 2005, we know the Colombia Trade Promotion Agreement will significantly benefit American workers and farmers.

The Colombian TPA eliminates the duty on 80 percent of U.S. exports to Colombia on day one of the agreement. Colombian exports to the U.S. already enter our country duty-free. The trade agreement will allow our manufacturers and farmers expanded access to the $30 billion (and growing) Colombian import market, supporting and creating vital industrial and agricultural jobs at home.

Yet, Chicken Littles in Congress continue to claim the sky is falling in the face of these expected economic benefits.

In the story, Chicken Little thought the sky was falling because an acorn fell on his head. Similarly, opponents to expanded trade try to pin recent bad economic news on DR-CAFTA and other agreements. The facts show our economy has benefited by the trade surplus we have today with every one of the 14 nations with whom we have free trade agreements.

Trade is good for America, and our bilateral trade agreements are a resounding success for U.S. farmers, workers and manufacturers. Once again, Chicken Little has been proven wrong.

Weller is a member of the House Ways and Means Committee.