The FINANCIAL -- The U.S. Chamber of Commerce released a study on September 15 exposing the economic cost-particularly in lost American jobs-resulting from the failure to approve pending trade agreements, "Buy American" rules in the stimulus bill, and the U.S. refusal to implement cross-border trucking with Mexico.
"Half a million American jobs are at risk if the U.S. fails to move forward on trade," said Thomas J. Donohue, president and CEO of the U.S. Chamber while unveiling the study today before more than 300 small business exporters at the Michigan Chamber of Commerce. "We need to jumpstart America's export economy because we can't rely on consumer spending, business investment, or ballooning government expenditures to drive our recovery."
The study, entitled Trade Action - or Inaction: The Cost for American Workers and Companies found the U.S. could suffer a net loss of more than 380,000 jobs and $40 billion in lost export sales if it fails to implement its pending trade agreements with Colombia and Korea while the European Union and Canada move ahead with their own agreements with the two countries.
"If we dawdle, American workers and farmers will be put at a competitive disadvantage in Colombia and Korea," Donohue said. "Canadian wheat farmers will be able to sell their crop to Colombians at a huge discount, and European manufacturers will easily undercut their American competitors in the Korean market."
The study also found that while "Buy American" rules in the Recovery Act will create a limited number of U.S. jobs, the gains will quickly evaporate if other countries implement "buy national" policies in their own stimulus programs. If foreign governments lock U.S. companies out of just one percent of this total spending, the net U.S. job loss could surpass 170,000.
"'Buy American' may sound good, but in fact it creates red tape, slows projects, and stifles job creation," said Donohue. "Ninety-five percent of the world's consumers live outside the United States, and as the world's largest exporter, we need to be able to 'Sell American,' too."
Finally, the study found that the U.S. failure to implement NAFTA's cross-border trucking provisions has resulted in $2.2 billion in higher costs for U.S. families and companies, $2.6 billion in lost U.S. exports, and more than 25,000 lost jobs for American workers.
"The U.S. has refused to keep its word to Mexico," said Donohue. "How can we call on other countries to meet their obligations under trade agreements if we refuse to meet our own?"
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