(January 28, 2010) The California Chamber of Commerce has urged the U.S. Trade Representative (USTR) to support the expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business.
The USTR last week hosted a conference, the “Jobs on Main Street, Customers Around the World: A Positive Trade Agenda for U.S. Small- and Medium-Sized Enterprises.” The week-long effort highlighted the commitment of USTR and partner agencies, such as the CalChamber, the U.S. Department of Commerce and the Small Business Administration, to supporting economic recovery through export-oriented growth.
Protectionism
In a letter to USTR Ron Kirk, the CalChamber explained that California stands to lose more than most states with a move toward protectionism.
The CalChamber opposes unnecessary and trade-restrictive ― “Buy American” expansions. CalChamber opposes protectionism that results in higher prices to the consumer for the specific product protected and in limited choices of products for consumers. Protectionism causes a net loss of jobs in related industries, retaliation by trading partners, and violates provisions of the World Trade Organization, as well as free trade agreements (FTAs).
California maintains its perennial position as a top exporting state and leads the nation in export-related jobs. California exports amount to nearly $145 billion annually. A move to protectionism only invites retaliation from California’s trade partners that would negatively affect trade-related jobs in the state. Increased protectionism has not helped the economy in the past and it won't in today’s increasingly global economy.
Trade Agreements
The CalChamber urges the USTR to work with Congress to approve the U.S.-Colombia FTA, the U.S.-Panama FTA and the U.S.-Korea FTA. It is critical to consumers, workers, businesses, farmers and ranchers in the state that these job-creating trade agreements are approved at a time when they are needed more than ever.
These FTAs will ensure that the United States may continue to gain access to world markets, which will result in an improved economy and additional employment of Americans. In addition, support of these trade agreements will continue to keep U.S. and California businesses competitive.
The Trans-Pacific Partnership
The Trans-Pacific Strategic Economic Partnership Agreement (TPP) was signed by New Zealand, Chile, Singapore and Brunei in the summer of 2005. In September 2005, negotiations for the United States to join the Trans-Pacific Agreement were launched. Australia, Peru and Vietnam also indicated interest in participating in negotiations from the first round. The Trans-Pacific Partnership is reinforcing the Asia-Pacific Economic Cooperation (APEC) goal of promoting regional economic integration and could serve as a way to build toward the Free Trade Area of the Asia Pacific. The CalChamber encourages the USTR to participate in these negotiations eventually leading to the United States’ accession to the TPP.
Trade Promotion Authority
For the future, the CalChamber will support the extension of trade promotion authority so that the President of the United States may negotiate new multilateral, sectoral and regional trade agreements ensuring that the United States may continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.
World Trade Organization
The WTO is having a tremendous impact on how California producers of goods and services compete in overseas markets, as well as domestically, and is creating jobs and economic growth through expanded international trade and investment. It gives businesses improved access to foreign markets and better rules to ensure that competition with foreign businesses is conducted fairly. The CalChamber is supportive of a successful Doha Round in the near future.
U.S. Department of Commerce
In keeping with U.S. Department of Commerce Secretary Gary Locke’s trade priorities, the CalChamber agrees that reforms for business visas and export controls, intellectual property protection, intergovernmental cooperation and trade promotion will help U.S. companies increase exports, while setting the country on a path to long-term, sustainable growth that creates jobs here at home.
With the ongoing global recession, jobs and exports will be the key to economic recovery.
Staff Contact: Susanne Stirling