Date: September 15, 2008

Source: John Murphy

On the campaign trail this year, trade has been blamed for a wide variety of economic woes. But in reality, trade is giving a huge boost to the U.S. economy in this election year. Here are the Top Ten Overlooked Facts About Trade for 2008:

10. Exports generated two-thirds of U.S. economic growth over the past year (Q3 2007 - Q2 2008). At a time of economic uncertainty, America's booming exports are helping the U.S. economy, not hurting it.

9. Trade supports millions of American jobs. Estimates range as high as 31 million jobs, according to a study by the Business Roundtable. In other words, nearly one in every five U.S. jobs is linked to exports and imports of goods and services.

8. Exports of services are growing faster than almost any other category and will surpass $550 billion this year, up from $473 billion in 2007. The U.S. trade surplus in services is projected to reach $125 billion in 2008. These exports are sometimes called "invisibles," but they support millions of American jobs.

7. Agricultural exports are projected to break records and pass the $100 billion mark for the first time in 2008. With one in three acres planted for exports, American farmers and ranchers are doing a brisk business feeding a hungry world.

6. Manufacturing powerhouses such as Michigan and Ohio depend on NAFTA, and they spend over half their exports to Canada and Mexico. Since NAFTA was launched, U.S. manufacturers have boosted their output by more than 50%, thanks in large part to booming demand in Canada and Mexico. Abandoning NAFTA would hurt U.S. factory workers more than anyone.

5. Excluding petroleum, the U.S. trade deficit now stands at its lowest level in nearly a decade. As a share of GDP, this deficit has narrowed by 44% since the end of 2004. Since 2002, rising imports of petroleum products have accounted for 93% of the increase in the U.S. trade deficit. The trade deficit says more about America's energy challenges than it does about the competitiveness of its workers and farmers.

4. The United States is now running trade surpluses with nine of the ten countries with which it has entered into free trade agreements since 2004. The exception is Nicaragua, one of America's smallest trading partners. The United States had trade deficits with six of these nine countries just a few years ago. For those worried about the U.S. trade deficit, trade agreements are clearly the solution - not the problem.

3. In the first half of 2008, 40% of U.S. exports went to the 14 countries* with which the United States has free trade agreements even though they represent just 7.5% of global GDP. Some of these countries are small, but America's trade agreements tear down foreign barriers to U.S. exports to make big markets out of small economies.

2. More than 97% of the 246,000 U.S. companies that export their products are small and medium-sized companies. While large companies account for the majority of exports, small and medium-sized companies account for nearly a third of all U.S. merchandise exports.

1. For 2008, the United States is on track to retain its title as the world's largest exporter, with exports of goods and services approaching $2 trillion. In other words, American workers, farmers and companies can compete and win in the worldwide economy.

*The United States has implemented trade agreements with Australia, Bahrain, Canada, Chile, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Mexico, Morocco, Nicaragua, and Singapore (agreements are pending entry-into-force with Costa Rica, Oman, and Peru).

John G. Murphy
Vice President for International Affairs
U.S. Chamber of Commerce