Press Release

Secretary Gutierrez Statement Calling for the Renewal of Trade Promotion Authority

WASHINGTON—Today Commerce Secretary Carlos M. Gutierrez issued a statement calling for the renewal of Trade Promotion Authority (TPA).

“Trade Promotion Authority provides economic opportunity for American businesses, farmers and workers to compete and win in international markets. TPA helps level the playing field, and boosts jobs for American workers by expanding our export opportunities around the world.

“Congress has an opportunity to demonstrate bipartisan leadership by passing essential Trade Promotion Authority legislation. The United States needs to continue to lead the world trading system and expand economic growth at home and abroad.

“Our trading partners, including those in Asia and the European Union, among others, are signing free trade agreements (FTAs) with each other, and the U.S. needs the ability to adapt and react within this dynamic environment.

“With exports at a historically high level, the U.S. cannot afford to be sidelined. FTAs play a vital part in maintaining that leadership position. Free trade agreements level the playing field. The countries with which we have implemented FTAs represent just 7.5 percent of global GDP, yet more than 42 percent of all U.S. exports are headed to our FTA partners.

“We have tremendously benefited from trade. More than 95 percent of the world’s consumers live outside of our borders and TPA helps ensure that U.S. goods and services reach them. If you look at our FTA with Chile for example, two-way trade over the first three years of the agreement rose by more than 154 percent. Last year, exports to the 11 countries with which we implemented FTAs between 2001 and 2006 grew faster than U.S. exports to the rest of the world.

“The Administration has worked hard, in a bipartisan fashion, to promote international trade and looks forward to working with Congress to continue this record of success with the assistance of TPA.”

Background
Renewed Trade Promotion Authority will help the United States continue to play a leadership role in multilateral and bilateral trade negotiations. A successful conclusion to the Doha Development Agenda will result in economic growth and development, especially in the world's poorer countries, by creating new trade flows and disciplining subsidies.

Bilateral free trade agreements have proved to be one of the best ways to open up foreign markets to U.S. exporters. Currently more than 100 regional trade agreements are being negotiated around the world. Today, the United States has FTAs implemented with 14 countries. Last year, trade with countries that the United States has FTAs was significantly greater than their relative share of the global economy. Although comprising 7.5 percent of global GDP (not including the United States), those FTA countries accounted for more than 42 percent of U.S. exports.