Thursday, February 5, 2015

Breaking: Dismal new trade data shows more job loss from trade deals

The Census Bureau today released the bad news that the U.S. trade deficit rose 6 percent to a near-record high. "Trade deficit" is another phrase for "lost jobs."

Remember the South Korea trade deal that was going to create 70,000 U.S. jobs? According to today's data, it cost 74,000 U.S. jobs. Good ones. 

Rob Scott at the Economic Policy Institute reports, 
U.S. trade and investment deals such as the North American Free Trade Agreement and the U.S.-Korea Free Trade Agreement, and China’s membership in the World Trade Organization, have resulted in growing U.S. trade deficits and job losses and downward pressure on U.S. wages.    
We should run as fast as we can from proposed trade deals like the TPPTTIP and TISA. We should be especially alarmed that TPP supporters in Congress are eager to pass a fast track bill in the next month or two. Fast track would make it impossible for Congress to do anything but rubber stamp the deals and the offshoring of more U.S. jobs.

"The new data just reinforce why members of Congress and the American public will not support another job-destroying deal," said Lori Wallach, director of Public Citizen's Global Trade Watch.  

Here are some low points from Global Trade watch: 
  • The data show President Obama’s goal of doubling exports from 2009 to 2014 failed dramatically. Exports of U.S. goods rose only 36 percent, $660 billion short of the export-doubling goal. 
  • The United States exported just 1 percent more goods in 2014 – the same average rate as in 2013 and 2012. 
  • The U.S. trade deficit in manufactured goods rose 11 percent (or $74 billion), topping $763 billion. 
  • U.S. exports to Korea in 2014 were lower than in 2011 before implementation of the Korea trade deal. 
  • The 2014 U.S. goods trade deficit with Korea was 81 percent, or $11 billion, higher than in 2011 before the trade deal took effect. That's because exports have fallen. This trade deficit increase represents more than 74,000 lost American jobs, according to the ratio the Obama administration used to project gains from the deal.