American Trade

AmericanTrade•Groupmember•LvJiajia•JiaCuicuiAmericanTrade•Differentfields•Tradeorganization•Commentsontrade•ProblemsDifferentFields•Agriculture•Manufacturer•Transportation•ServiceAgriculture•U.S.agriculturalexports,whichgeneratedanadditional$135billioninsupportingbusinessactivityintransportation,distribution,foodprocessingandmanufacturing.•TheUnitedStatesistheworld'slargestproducerandexporterofagriculturalproductswitha21%shareofworldfarmtrade.•TheUnitedStatesistheworld'slargestmanufacturer,witha2007industrialoutputofUS$2.69trillion.In2008,itsmanufacturingoutputwasgreaterthanthatofthemanufacturingoutputofChina,India,andBrazilcombined.ManufacturerManufacturer•Mainindustriesincludepetroleum,steel,automobiles,aerospace,agriculturalmachinery,telecommunications,chemicals,electronics,foodprocessing,miningandsoon.Transportation•About95percentofU.S.foreigntradepassesthroughitsportsystem.•Theimportanceofmaritimetransportationinglobalfreighttrade,particularlyintermsoftonnage,itaccounts90%oftheglobaltrade.AirTransportation•Althoughintermsoftonnageairtransportationcarriesaninsignificantamountoffreight(0.2%oftotaltonnage)comparedwithmaritimetransportation,itsimportanceintermsofthetotalvalueismuchmoresignificant;15%ofthevalueofglobaltrade.•Internationalairfreightisabout70timesmorevaluablethanitsmaritimecounterpartandabout30timesmorevaluablethanfreightcarriedoverland,whichislinkedwiththetypesofgoodsittransportsService•TheUSistheworld’slargestserviceexporter.•ServicesarecrucialtotheUSeconomy,employment,andinternationaltrade.Servicesrepresentnearly78%ofUSeconomicoutput.Servicesareessentialinputsintotheproductionofvirtuallyallproducts.•WhatarethemostinfluentialindustriesmentionedaboveinAmerican?•WhatarethethreeorganizationsaboutAmericantrade?Tradeorganization•NAFTA(TheNorthAmericanFreeTradeAgreement)•TheLatinAmericaTradeCoalition•SATDA(SinoAmericanTradeDevelopmentAssociation)NAFTA•TheNAFTAisanagreementsignedbythegovernmentsofCanada,Mexico,andtheUnitedStates,creatingatrilateraltradeblocinNorthAmerica.TheagreementcameintoforceonJanuary1,1994•ThegoalofNAFTAwastoeliminatebarriersoftradeandinvestmentbetweentheUS,CanadaandMexico,forexample,reducingoreliminatingtarifftradebarriers.InfluencetoUS•USagriculturalexportstoMexicoandCanadahavetripled.•TheemploymentintheU.S.increasedby24percentbetween1993and2007.•U.S.workershavebeenpushedintolower-payingjobduetofiercecompetition.InfluencetoMexico•MexicanexportstotheUnitedStateshavequadrupled(fourtimes)sinceNAFTA'simplementation•NAFTAhasbroughtonlymodesteconomicgrowthtoMexico.InfluencetoCanada•Canadahasseenthebiggestannualgrowthratessince1993,accordingtoCouncilonForeignRelations.•NAFTAhashelpedboostagriculturalflowsbetweentheUSandCanada.TheLatinAmericaTradeCoalition•TheLatinAmericaTradeCoalitionisabroad-basedgroupofmorethan1,200U.S.companies,businessorganizations,farmandranchgroups,andchambersofcommerce.•Thecoalition'sgoalistosecureCongressionalapprovaloftheU.S.-ColombiaTradePromotionAgreementandtheU.S.-PanamaTradePromotionAgreement.SATDA•RegisteredintheUnitedStates,SinoAmericanTradeDevelopmentassociation’shomeintheUSAisinLasVegas.TheChineserepresentativeofficeislocatedinBeijingCentralBusinessDistrict(CBD).•ItspurposeistobuildabridgebetweenChinaandAmericabyfacilitatingenterprisesandgovernmentorganizations.CommentsonTradeThebenefitfortherichbutnotUSworkersThenegativeeffectofjobsTheimpactofenvironmentTheunfairnesstopoorcountriesThebenefitfortherichbutnotUSworkers•Oneofthemostprominentreservationsabouttradeisthatitsbenefitsarenotequallydistributed.Whilethemajoritybelievesthattradebenefitsbusinessandtherich,theminoritybelievesthatithelpsworkersYearBusinessmanWorker199960%25%200451%25%TheEffectaboutJobs•InJuly2004,Pewfound41%sayingthat“FreetradehasbeenmostlybadfortheUSeconomyandAmericanworkers”,whileonly31%saidithasbeengood.Twenty-eightpercentdidnotknow.Theimpactofenvironment•IntheJuly2004CCFRsurvey,46%respondentssaidinternationaltradewasbadfortheenvironment,while45%saiditwasgood.TheunfairnesstopoorcountriesInaJuly2004CCFRpoll65%disagreed(23%strongly)that“Richcountriesareplayingfairintradenegotiationwithpoorcountries.”PIPAfound62%disagreeing(28%strongly)inJanuary2004.Problems•Dollar•Tradedeficit•DumpingandSubsidizationRemediedDollar•TheU.S.dollaristhecurrencymostusedininternationaltransactionsandisoneoftheworld'sreservecurrencies.Severalcountriesuseitastheirofficialcurrency,anditisalsousedasthesolecurrencyinsomeBritishOverseasTerritories(BritishVirginIslandsandTurksandCaicos).DollarDecline•TheUnitedStatesishelplesslydependentonimportstogetby.AfallingUSdollarleadsitcostsmoretoimportgoodsfromothercountries.•Europeansworrythatthedollar'sfallwillharmtheirweakeconomicupturnbymakingtheirexportsmoreexpensiveintheUSorinothereconomiestiedtothedollar.TradedeficitThetradedeficitisexcessofanation'simportsofgoods(tangibles)overitsexportofgoodsduringafinancialyear,resultinginanegativebalanceoftrade.Tradedeficit•Anongoingtradedeficitisharmfultothenation’seconomyoverthelongtermbecauseitisfinancedwithdebt.Inother