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Blog Category: TPP

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Guest blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

When we look back at 2014, it will be seen as the year our country regained its economic confidence, symbolized by the nearly 3 million jobs our economy created in 2014.

While this feat extended the longest streak of job growth in American history, we should not overlook the role our exports and our exporters played in regaining that economic confidence.

U.S. exports of goods and services tallied a record $2.35 trillion in 2014. That was the fifth consecutive year we achieved record exports. This is a clear validation of the Administration’s commitment to a robust trade and investment agenda.

In fact, there are three ways that our exports played an important role in the breakthrough year our economy produced.

First, at the same time that we were experiencing the longest streak of job growth, we also experienced a record year when it came to export-supported jobs: more than 11.7 million.  This number includes the 2.8 million jobs supported by the exports to our North American Free Trade Agreement partners Canada and Mexico. And we know those export supported jobs pay 13 to 18% higher wages than non-export supported jobs.  

Second, U.S. exporters reaped the benefits of a record year of exports with our 20 free trade partners – with a total of $765 billion in goods sent to these markets. That record included increases in exports to Colombia (up 10.5%), South Korea (up 6.8%) and the Central America Free Trade Agreement-Dominican Republic partners (up 5.7%).  Overall, these 20 countries purchase nearly half of all U.S. exports today – 47% to be exact.

Third, a major driver of our export growth came from our Latin American free trade partners, such as Chile, Colombia, Mexico, Panama, and Peru. Exports to these 11 countries alone represented more than a third of our entire year-over-year increase in exports. The region is a major destination for U.S. petroleum and coal, computers and electronics, chemicals, and transportation equipment.

So 2014 was clearly a breakthrough year for our exports and for our economy in general. Now, we need the tools that will allow us to carry that momentum into 2015 and beyond.

That is why passing trade promotion legislation is even more crucial, particularly as we work to finalize the historic Trans-Pacific Partnership agreement (TPP).

Secretary Pritzker Joins Bipartisan Roundtable on the Benefits of Trade During National Governors Association Winter Meeting

Secretary Pritzker Joins Bipartisan Roundtable on the Benefits of Trade During National Governors Association Winter Meeting

Yesterday, Commerce Secretary Penny Pritzker joined a bipartisan roundtable at the White House on the importance of trade and new trade agreements. The meeting was part of the National Governors Association (NGA) Winter Meeting in Washington. NGA is the bipartisan organization of the nation’s governors, and its members include the 55 states, territories and commonwealths of the United States. 

Governors John Hickenlooper of Colorado, Gary Herbert of Utah, and Terry McAuliffe of Virginia attended the roundtable, along with Secretary Pritzker, U.S. Trade Representative Michael Froman, Agriculture Secretary Tom Vilsack, and White House officials.
 
During the discussion, Secretary Pritzker highlighted how trade has helped drive the nation’s economic recovery and proven beneficial to state's economies. For example, more than 5,000 Colorado businesses, both large and small, are counted among the ranks of America’s exporters. Exports from Virginia to our free trade agreement partners have grown by 74 percent over the past 10 years, and in Ogden, Utah, exports drove more than 100 percent of growth out of the recession.
 
Overall, exports support 11.3 million American jobs – which pay up to 18 percent higher than jobs not related to exports. In addition, the Commerce Department announced earlier this month that American exports had hit an all-time high for the fifth year running – sending $2.35 trillion worth of goods and services overseas.
 
That is why the Obama Administration has set an ambitious trade agenda focused on building on this progress.  It will ensure U.S. businesses in every state can access more global markets with fewer barriers. 
 
This agenda includes the completion and implementation of new trade agreements including the Trans Pacific Partnership, which the U.S. is negotiating with 11 other nations. Once completed, TPP will give American businesses free trade arrangements with 40 percent of global GDP.
 
Secretary Pritzker stressed to the attending governors that in today’s global economy, American prosperity is directly tied to our ability to reach new markets and new customers beyond our borders. Today’s roundtable gave Secretary Pritzker an opportunity to  urge the nation’s governors to support trade policies like TPP, and explain why they are essential to the growth of the economy, to the creation of good jobs, to the economic security of American families, and to the competitiveness of our businesses.