The fact is that U.S. free trade agreements (FTAs) have never been a significant factor in the U.S. trade deficit, and over the past two years FTAs have resulted in a U.S. manufactured goods surplus of nearly $50 billion. That’s right —
according to the Census Bureau data for manufactured goods exports in 2008-’09, we sold our trade agreement partners nearly $50 billion more manufactured goods than we bought from them.There is no question the United States has a trade problem, but it is not caused by FTAs. Our challenge is with oil imports and with countries where we do not have trade agreements.
While racking up a $50 billion manufactured goods surplus with our FTA partners over the past two years, we suffered an $820 billion manufactured goods deficit with the rest of the world.Consider NAFTA and the assertion that it cost millions of manufacturing jobs. In reality, Labor Department data show that for almost a decade after NAFTA, the United States gained nearly a half-million manufacturing jobs. The big manufacturing employment loss didn’t begin until 2001 (with the ramp up in imports from China). What Wallach failed to mention in her opinion was that the manufactured goods deficit with NAFTA barely budged after 2001 while nearly doubling with the rest of the world. Jobs displaced by imports from NAFTA were offset by the jobs gained from exports.
True, the overall deficit with NAFTA has soared since 2001 — again, the result of oil imports, not manufactured goods. Growing oil imports do not cost manufacturing jobs, and aside from energy imports, the deficit is virtually unchanged.
The deficit — and the trade problem — is with countries where we do not have FTAs, such as China, which accounts for three-quarters of our manufactured goods deficit. What about CAFTA, which opponents assured Congress would result in huge U.S. job losses?
U.S. manufactured goods went from consistent deficits before CAFTA to a surplus that has totaled over $12 billion since the agreement. What about Peru? Peru is another example of the misinformation spread by Wallach and others. The U.S. has moved into a surplus with Peru.
http://thehill.com/opinion/op-ed/93115-free-trade-pacts-have-been-good-for-usWhile most of our manufacturing trade deficit undoubtedly does come from the BRIC (Brazil, Russia, India and China - particularly China) countries with whom we don't have free trade agreements, I can't vouch for the accuracy of the NAM's figures regarding manufacturing trade surpluses and jobs as they relate to our actual "free trade" partners. It would make sense that the NAM would push FTA's if their experience is that they gain more business from exports than they lose to imports.