hot topic
UNITED STATES TRADE AGREEMENTS (2013) IMPORTS
EXPORTS
US-AUSFTA | U.S.-Australia Free Trade Agreement
More than 80 percent of the world’s purchasing power resides outside the United States—that’s a lot of customers for U.S. businesses. More than one in five American jobs—38.1 million—depend on international trade. In addition, foreign-owned companies employ 5.3 million Americans. Looking to the global marketplace for economic development and paying attention to export and import trends is no longer an option for state policymakers—it is a necessity. A study by the International Trade Administration found that jobs in exporting industries actually pay better, with exports contributing an additional 18 percent to workers’ earnings on average in the U.S. manufacturing sector. That earnings premium is even higher for blue-collar workers, who get a 20 percent boost over white-collar workers. While trade policy is largely handed down from Washington, state leaders must understand those policies—particularly how free trade agreements affect their state—as they craft their job growth strategies. Although free trade agreements can be contentious, they are, at their essence, an agreement between two or more countries to abide by certain rules that affect trade and offer protections for investors and intellectual property rights. They are designed to reduce barriers to trade, protect U.S. competitive interests abroad and enhance the rule of law among partner countries.
36 CAPITOL IDEAS | MAR/APR 2015
USBFTA | U.S.-Bahrain Free Trade Agreement NAFTA | North American Free Trade Agreement US-CHIFTA | The United States-Chile Free Trade Agreement CTPA | The United States-Colombia Trade Promotion Agreement CAFTA-DR | The United States-Central AmericaDominican Republic Free Trade Agreement US-ISRFTA | The United States-Israel Free Trade Area Agreement US-JORFTA | The United States-Jordan Free Trade Area Agreement KORUS FTA | The United States-Korea Trade Agreement US-MOR FTA | The United States-Morocco Free Trade Agreement US-OMANFTA | The United States-Oman Free Trade Agreement US-PANTPA | The United States-Panama Trade Promotion Agreement PTPA | The United States-Peru Trade Promotion Agreement US-SINFTA | The United States-Singapore Free Trade Agreement Source: Office of Trade Representative
TOP 5 STATE MERCHANDISE EXPORTERS (2013)
Value of Merchandise Exports ($billions)
State Share of National Exports
Texas $279.49 18% California $168.04
11%
New York
5%
$86.52
Washington $81.64
5%
Illinois $66.09 4%
