Washington~ The Coalition for a Prosperous America (CPA) expressed strong support for a newly filed House resolution (H.Con.Res.175) calling for a national goal of balanced trade, with a special emphasis on manufacturing and goods. Leading the resolution are Representative Dan Lipinski (D-IL-03) and Representative Mo Brooks (R-AL-05).
The goal of this resolution is to express:
… the sense of Congress that Congress and the President should prioritize the reduction and elimination, over a reasonable period of time, of the overall trade deficit of the United States.
The resolution addresses America’s forty straight years of trade deficits, which have substantially increased in the last 25 years. In 2015, the overall trade deficit of the United States was $532 billion, including a massive $758 billion deficit in goods.
The resolution states:
Whereas a robust manufacturing capability is essential for national security;
Whereas trade imbalances are unhealthy for the global economy and stagnate economic growth in deficit countries such as the United States and especially in the manufacturing sectors of such countries;
Whereas certain foreign trading partners of the United States are running persistent trade surpluses against the United States as an economic growth alternative to fostering the domestic consumption of their manufacturers;
Whereas persistent trade deficits hinder the ability of the United States to reach full employment and increase underemployment and reliance on low-wage and often part-time service sector jobs;
“Current trade statutes and administrative goals focus upon exports only without considering net trade,” continued Stumo. “Exports are expansionary and create jobs while imports are contractionary and destroy jobs. Net trade is the crucial performance metric. Many do not realize that sector by sector tariff and non-tariff barrier cuts have little to no correlation with our overall trade performance.”
“True free trade – without currency manipulation, foreign VAT taxes, industrial subsidies and other cheating tactics – is supposed to produce rough balance among countries over time. Our failed trade policy enables or ignores foreign trade cheating, resulting in many years of destructive trade deficits, job losses and economic decline. A national goal of balanced trade would establish the proper performance metric to judge whether our trade policy is failing or succeeding. The best means to achieve that goal should flexibly change depending upon a continuing assessment of which strategic challenges are faced in any given year.”
The Coalition for a Prosperous America is a nonprofit organization representing the interests of 2.7 million households through our agricultural, manufacturing and labor members.
Contact: Paola Masman, Media Director
202-688-5145 ext 2, [email protected]