US TRADE POLICY AGENDA FOR 2017

The overarching purpose of US trade policyis to expand trade in a way that is freer and fairer for all Americans. Every action the US takes with respect to trade will be designed to increase US growth, promote job creation in the United States, promote reciprocity with US trading partners, strengthen US manufacturing base and US ability to defend itself, and expand its agricultural and other exports.

As a general matter, the US believes that these goals can be best accomplished by focusing on bilateral negotiations rather than multilateral negotiations and by renegotiating and revising trade deals when US goals are not beig met. The US rejects the notion that it can strengthen its geopolitical position by adopting trade measures that make American workers, farmers, ranchers, and business less competitive in global markets.

Key Objectives

1. Ensuring that U.S. workers and businesses have a fair opportunity to compete for business both in the U.S. and in other key markets around the world.
2. Breaking down unfair trade barriers in other markets that block U.S. exports, including exports of agricultural goods.
3. Maintaining a balanced policy that looks out for the interests of all segments of the US economy, including manufacturing, agriculture, and services.
4. Ensuring that US owners of intellectual property have a full and fair opportunity to use and profit from that property.
5. Strictly enforcing US trade laws that prevent the US market from being distorted by dumped and/or subsidized imports that harm domestic industries and workers.
6. Resisting efforts by other countries- or international bodies like the World Trade Organization ('WTO') to weaken the rights and benefits of, or increase the obligations under the various trade agreements to which the United States is a party.
7. Updating current trade agreements as necessary to reflect changing times and market conditions.
8. Ensuring that the United States has the economic strength and manufacturing base necessary to maintain and improve its national security.
9. Strongly advocating for all US workers, farmers, ranchers and businesses to assure the fairest possible treatment of American interests in the US market and in other markets around the world.

Top Priority

1. Defend US national sovereignty over trade policy.
2. Strictly enforce US trade laws.
3. Using leverage to open foreign markets
4. Negotiating new and better trade deals.

Since the late 1980's, the United States has entered into a wide variety of trade deals, including the North American Free Trade Agreement, the Uruguay Round Agreement that created the WTO, China's entry into the WTO, and a series of 'free trade agreements' including one with South Korea.

Results of US Trade Policy 

• In 2000, the US trade deficit in manufactured goods was $ 317 billion. Last year, it was $ 648 billion, an increase of 100%
• US trade deficit in goods and serviceswith China soared from $ 81.9 billion in 2000 to almost $ 334 billion in 2015 (last year for which such data are available) an increase of more than 300%
• In 2000, US real median household income (in 2015 dollars) was $57,790. In 2015 (the most recent year for which data are available), it was $ 56,516. In other words, despite the recovery since the financial crisis, median household income in the United States remains lower today than it was 16 years ago.
• In January 2000, there were 17,284,000 manufacturing jobs in the United States, a figure roughly in line with the total number of US manufacturing jobs going back several decades. In January 2017, there were only 12,341,000 manufacturing jobs in the United States a loss of almost 5 million jobs.
• In the 16 years before China joined the WTO- from 1984 to 2000, US industrial production grew by almost 71%. In the period from 2000 to 2016 US industrial production grew by less than 9%.
• In 2000, the United States accounted for 30.6% of world gross domestic product (GDP) while China accounted for 3.6%. Last year the United States accounted for 24.7% of world GDP, while China accounted for 15.1%.
• If GDP is measured on a purchasing power parity (PPP) basis that accounts for differing cost of living in different countries, the US share of global GDP fell from 20.7% in 2000 to only 15.6% in 2016. Meanwhile, China's share grew from 7.5% to 17.9%
• In 2016 US combined trade deficit in goods with Canada and Mexico was more than $ 74 billion.
• From 2011 (the last full year before the US-Korea FTA went ento effect) to 2016, the total value of US goods exported to South Korea fell by $ 1.2 billion. Meanwhile, US imports of goods from South Korea grew by more than $ 13 billion. As a result, US trade deficit in goods with South Korea more than doubled.

Bottom Line

1. Reciprocity:  Free and fair trade with free and fair traders.  To get the best treatment in trade, a nation needs to give it to others.
2. Respect for Rules:  Countries need to play by the rules and not get an unfair advantage by subsidizing their industries.
3. Results-Oriented:  A free and fair trade policy is expected to produce fair and equitable results.  A key to good results is toughness.