The Economic Benefits of US Trade

New Trade Policies

In 2015, the United States had 14 free trade agreements with a total of 20 partner countries. Thus the US economy already hugely benefits from free trade. However, more advantages are possible. In 2015, the US was among the countries that are most open to trade. At the same time, US exporters faced tariff barriers averaging 6.8% – along with other protectionist taxes and nontariff barriers – when seeking to sell American goods and services to the rest of the world. The Obama Administration’s 2015 enhanced trade policies aspire to establish a new era of wider benefits to the overall US economy and its trading partners. The policies’ goals are to:

• Raise productivity and the number of higher paying jobs, especially in the export sector.
• Give consumers a wider variety of products at lower prices.
• Encourage foreign direct investment and boost the economy.
• Improve labor standards; promote better management of the environment; and champion gender, racial and ethnic equality in partner countries.
• Advance strategic and geopolitical interests.

Why New Trade Agreements Are Good Public Policy

Ten reasons...