WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today issued the following statement on the release of the September 2007 U.S. International Trade in Goods and Services report by the Department’s U.S. Census Bureau and the U.S. Bureau of Economic Analysis. Today’s report shows that U.S. exports increased by 11.8 percent to $1,194.4 billion year-to-date (through September) over 2006. During the same period, imports increased 4.4 percent to $1,721.9 billion and the trade deficit declined by 9.3 percent, dropping to $527.5 billion year to date.
“America's export engine is running on all cylinders. Overseas demand for American goods reached a new high today with exports soaring to record levels. We’ve seen GDP grow now for 24 consecutive quarters and a record-breaking 50 consecutive months of job growth. Twenty-four percent of our nation’s 3.9 percent real GDP growth was generated by trade, which is keeping Americans working, farmers in business and businesses flourishing. These positive signs show the President's trade policies are helping to foster broad-based economic growth.
“We need to build on our export growth momentum and the best way to do that is to pass the four free trade agreements with Peru, Colombia, Panama and Korea. U.S. exporters should not be asked to wait. Trade is vital to U.S. job growth, and FTAs are a proven way to boost exports and add more jobs to our expanding economy. The Peru FTA has generated overwhelming bipartisan support in the U.S. House of Representatives, and we look forward to the Senate’s consideration of this important legislation.
“The United States is Peru’s leading trading partner, accounting for 23.3 percent of Peru’s exports and supplying 16.4 percent of the country’s imports in 2006. Congress has previously allowed 98 percent of imports from Peru to enter the U.S. duty free, while American exports to Peru face significant tariffs.
“Our trade agreements will enhance economic growth and prosperity, as well as expanded, reciprocal access to the markets in both of our countries. Opening markets creates opportunities for American exporters and increases the competitiveness of our economy.” Background: Bilateral free trade agreements (FTAs) are one of the best ways to open up foreign markets to U.S. exporters. Today the United States has implemented FTAs with 14 countries. Last year, trade with countries with which 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. merchandise exports.
In 2006, more than 90 percent of Peruvian, Colombian and Panamanian imports into the United States entered duty free under unilateral U.S. trade preference programs, such as the Andean Trade Preferences Drug Eradication Act (ATPDEA) and the Generalized System of Preferences (GSP), or under zero Normal Trade Relations (NTR) tariffs. These FTAs will open these markets to U.S. exporters as they will provide duty-free treatment for U.S. exports to countries that already purchase from the United States.
The FTAs would level the playing field for U.S. workers, businesses and agriculture. The FTAs will give U.S. businesses duty-free access to growing markets with a combined population of approximately 75 million consumers and GDP of almost $246 billion. Between 2002 and 2006, combined U.S. goods exports to Peru, Colombia and Panama increased by 88 percent, reaching $12.3 billion in 2006.
U.S. – Peru bilateral trade has more than doubled over the past decade from $3 billion in 1996 to $8.8 billion in two-way trade in 2006, due in large part to the ATPDEA.
For information, please visit http://trade.gov/fta.
Source: U.S. Department of Commerce
